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BMW Financing and Incentives

2K views 17 replies 11 participants last post by  whiteface 
#1 ·
So I just ordered a new X5 and had to finance a portion to get the incentives. The dealership told me the minimum amt was $7500 and you had to keep it for six months.

I get to thinking and figure I can pay $7400 on my first payment and slowly pay the $100 balance over the next 5 months. That will keep the interest charges to a minimum.

Does anyone know if this would be ok and not void the incentives? Or maybe you might have a better approach.

Thanks
 
#4 · (Edited)
Your premise is inverted. He is asking HOW LONG does he HAVE to keep the $7,500 non-cash balance on his account in order to participate in the financial incentives rather than simply paying it off in cash.

In contrast, you (like most of us) financed most/all of it so this is two sides of different coins. However, that being stated I WOULD be interested in IF you were able to get the re-financing bank provided you the NEW car reduced rate on the 2 month old vehicle? If so, I would be interested in learning which bank you used. I did the BMW finance thing to get the $1,250 incentive (in my case) but the interest rate is 3.29% for 72 months. I know that PenFed and others were offering rates as low as 1.79% for that same 72 month loan for a NEW car. My understanding is that once you own it, it no longer qualifies as NEW so you can't get those super low (under 2%) rates and therefore many of us are stuck with the higher BMW rate and would be interested in our options. Thanks in advance!
 
#7 ·
Interesting question. I don't have the answer to your theory, but I know the actual time frame is 3 months not 6.

I did the same to get the BMWFS rebate and then paid it off in 3 months. Also BMWFS will not come back on you, but the dealership, so depending on your ethics you can essentially do what ever the hell you want. I'm not sure on the minimum balance needed to be maintained, you may ask your SA, but sounds like they already gave you the wrong info on the term (assuming it hasn't changed in 12 months).

Also for the "new car" question, my credit union considers anything 2007+ as "new" not just a 0 mile car sitting on a lot, I would make a call to your bank.

Jay
 
#9 ·
4 months?

My Finance Manager told me that in order to keep the incentives, you have to carry a balance, and make at least 4 payments. At that time you can pay off the balance a day after the 4th payment is made/due.

Hope that helps.
 
#10 ·
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.
 
#12 ·
I'm not following the math comment. I really want to minimize the interest payment while not voiding the incentives. I can do this if I understand the flexibility in payment and time frame which I don't. Anyhow, the Tubernator answered my question. thanks
 
#13 ·
Sorry, I did not fully understand the post originally. However, I was able to refinance 2 months later to lower my monthly payments and still keep the incentives, I don't see why you can't pay off after 1 or two months and still keep the incentives. Again, someone said BMWFS won't make you pay or take away the incentives. I suspect the dealership might get some kickbacks from BMWFS if you stay financed with BMWFS after a few months and that is why they told you that.
 
#15 ·
Is there a link on the current incentives?
 
#17 ·
Yeah all I see is 3.19% on x5
 
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