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Old 01-10-2013, 05:15 PM
ndabunka's Avatar
ndabunka ndabunka is offline
'12 X5 35d Black-on-Black
Location: Charlotte, NC
Join Date: May 2009
Posts: 1,895
Mein Auto: X5d Ski Machine-Blk Betty
Originally Posted by MRV99 View Post
Do the math.... If you are getting X incentives to borrow 7500.00, and the cost to finance that 7500 is less than that incentive, then do it. If it is not, then don't.
Sorry but your statement doesn't make any sense in the context this was presented. Your approach appears too simplistic (Get discount using the BMW-based incentives). That was ALREADY a "given". What is being postulated is "what ELSE can be done to help reduce the on-going costs".

There never was any DOUBT about leveraging the BMW-offered incentives/discount savings. That was never in question either for the OP or for me. Rather, we are interested in our BEST options AFTER we have made that decision.... e.g. What ELSE can we do to further reduce our ongoing costs. If the OP has cash and wants to pay it off, it appears that he can do so anytime after the 3rd month of payments and not have any concerns about compromising the original discount. In my case, I want to reduce my long term payments from the 3.29% to a 1.79% (or the lowest rate I can find) so that my on-going carrying costs are reduced from the original interest rate. Both of these are simply intelligent financial principles. The only real question here was "WHEN CAN WE DO IT" and I believe we now have our answers thanks to this thread! :cheers:

One note is that some financing companies DO require reasonably significant down payments in order to refinance. Something like a minimum of 5 or 10% of the purchase price is pretty much expected. That isn't an issue with me or the original OP but some reading this who may have financed in negative equity from a prior trade or lease might not be able to refinance as easily as those of us who have put a minimum of 10% down on the vehicle. If someone is 100% in debt based on the valuation of the car (e.g. paid $55K for a $55K vehicle) then it is highly unlikely that the 3rd-party finance companies would be willing to refi them at a competitive rate. Same applies to those with marginal credit scores below 750... probably not gonna qualify for the lower refi rates and they would be essentially "stuck" with their BMW-agreed loan conditions/rates and duration.

'12 X5d Sapphire/Black/Bamboo, Sport (ZAP), Premium (ZPP) & Premium Sound(ZPS) packages: 20" 214's, OEM Hitch

Last edited by ndabunka; 01-10-2013 at 05:22 PM.
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