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  #1  
Old 01-16-2005, 11:36 PM
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BMW financing - any benefits?

WOOHOO My car status has changed on the owners circle from On Order to Schedule for Production. I finally have a VIN #. Did anyone else get this excited when it happened to them?

BTW, now that I have a VIN #, can I get independent financing for my ED pickup? BMW told me I'd have to finance with them, since most likely I wouldn't have a VIN # in time to pay 30 days before I picked up the car. (They mentioned they might not have a white slip?) Is this white slip dependent on the VIn # only? I can save at least 1% point if I can go elsewhere other than BMW.

The dealer says its better to go with BMW financing because they might offer special benefits every now and then - but I think they are just trying to get my business. Any advice?
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  #2  
Old 01-16-2005, 11:39 PM
Eduardo Eduardo is offline
 
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Quote:
Originally Posted by icemanjs4
WOOHOO My car status has changed on the owners circle from On Order to Schedule for Production. I finally have a VIN #. Did anyone else get this excited when it happened to them?

BTW, now that I have a VIN #, can I get independent financing for my ED pickup? BMW told me I'd have to finance with them, since most likely I wouldn't have a VIN # in time to pay 30 days before I picked up the car. (They mentioned they might not have a white slip?) Is this white slip dependent on the VIn # only? I can save at least 1% point if I can go elsewhere other than BMW.

The dealer says its better to go with BMW financing because they might offer special benefits every now and then - but I think they are just trying to get my business. Any advice?
I have BMW finance. The only benefit for me is their on-line payment option and the 1.9% APR that I have on the loan.

Last edited by Eduardo; 01-17-2005 at 08:26 PM.
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Old 01-17-2005, 06:42 AM
BE1w330 BE1w330 is offline
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For ED you only have to pay 15 days before pickup now, so you have a little more time to search for another loan provider. You do have a choice for your finance provider.
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  #4  
Old 01-17-2005, 08:40 AM
sailher sailher is offline
 
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I did ED and got financing though a local bank. When it came time to sign the papers, they (BMW) really wanted my business so they beat my bank by 1 pt. Never deal financing until you have agreed on price. I would just see who has the best rate.
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Old 01-17-2005, 10:47 AM
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Here was my approach. I went to my bank first then to 2 reputable online sources (i.e. ELoan, etc.) and took the lowest APR I got to BMW Financial Services. I said, "I am planning to finance this through my bank at X%. If you can beat it by .25% I'd be more than happy to give BMW FS my busiess."

Done. I'm financing through BMW FS.

Its just simple math.
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Old 01-17-2005, 10:51 AM
Gabe Gabe is offline
 
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Bargaining seems to be a good approach. I wouldn't have guessed it to be that easy. I will definitely have to keep that in mind.
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  #7  
Old 01-17-2005, 10:56 AM
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hey all, what I'm trying to figure out is, are there any real benefits to going through BMW financing. Ie do they treat you better? Or does the dealership treat you nicer? Or are there really no consequences?
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Old 01-17-2005, 12:59 PM
jetstream23 jetstream23 is offline
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Quote:
Originally Posted by icemanjs4
hey all, what I'm trying to figure out is, are there any real benefits to going through BMW financing. Ie do they treat you better? Or does the dealership treat you nicer? Or are there really no consequences?
I wouldn't think there are too many additional benefits. For me, the lower rate was the benefit and that's just about all I want out of a Finance company.
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Old 01-17-2005, 01:29 PM
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Your salesman is correct, financing through BMWFS could get you a better rate. BMWFS offers what is called their “Sales Support Rates”. That means BMWNA pays BMWFS a portion of the interest rate in order to increase sales. For example, if BMWFS is offering a rate of 2.9% on your car, on certain models, BMWNA would pay BMWFS 1% and offer a rate of 1.9% to the customer.

So yes, financing through BMWFS could potentially get you a better rate, depending on the model and how much BMWNA is kicking in.
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Old 01-17-2005, 05:18 PM
STEVE46 STEVE46 is offline
 
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Originally Posted by ff
The dealer and BMW as a company make more money on the deal if you finance through them. Never trust a word that comes out of a salesman's mouth. You can most likely find better financing on your own.
Not always. If you qualify, and if the car you want has special financing, you can get a better rate through BMWFS. When I got my used 330i, the BEST rate I could get from a bank/online was 4.79%, which is pretty good for a used car. BMWFS had an offer going for 2.9% so I took that instead. 2.9% is unheard of on a used car... unless it's a 2001 BMW
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Old 01-17-2005, 08:30 PM
Eduardo Eduardo is offline
 
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Originally Posted by icemanjs4
hey all, what I'm trying to figure out is, are there any real benefits to going through BMW financing. Ie do they treat you better? Or does the dealership treat you nicer?...

I am sorry I couldn't resist. I know you are being serious, but it sounded funny.
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  #12  
Old 01-17-2005, 10:31 PM
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Well originally what I heard was that it was hard to finance through a bank on a ED car. Without a Vin # or a white slip, the bank wouldn't actually give BMW any money. Now that I have a VIN # I'm thinking the bank might be ok. I'd rather take my lower rate from the bank.

Does anyone in Austin know of any great loan sources? Austin Telco is looking good so far.
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Old 01-17-2005, 11:35 PM
LDV330i LDV330i is offline
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Quote:
Originally Posted by icemanjs4
BTW, now that I have a VIN #, can I get independent financing for my ED pickup? BMW told me I'd have to finance with them, since most likely I wouldn't have a VIN # in time to pay 30 days before I picked up the car. (They mentioned they might not have a white slip?) Is this white slip dependent on the VIn # only? I can save at least 1% point if I can go elsewhere other than BMW.
Congrats on getting closer you see your dream come true.

Getting financing on a ED car can be tricky. Some people have been lucky and have been able to get independent financing on their ED cars. I was unable to find anybody who would finance my ED car. Everybody told me they would need to get proof that they would be the lienholders on the title shortly after releasing the funds. Having a VIN was not sufficient. When you look for financing please make sure this point is clear, that the title to the car may not be issued up to 3 months after the funds are released. If this is not clear the bank has the right to recall the loan for not having fulfilled all the requirements of the loan. Then you are royally screwed because you have to return all the money immediately.

I had to allow BMFS to royally screw me by charging me 2 points higher than the rate I could have received somewhere else. As soon as my car was redelivered I refinanced my loan at a much lower rate. I had to wait for the car to get redelivered because the refinance banks were insisting in getting the title shortly after releasing the funds. Something to keep in mind that I did know when I financed is that if you refinance your BMWFS less than 60 days after signing the contract, the dealer will not be paid his commisision. I guess you can always threat to refinance as leverage if you do not get a decent rate.
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Old 01-18-2005, 12:19 AM
pjsatz pjsatz is offline
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Quote:
Originally Posted by icemanjs4
Well originally what I heard was that it was hard to finance through a bank on a ED car. Without a Vin # or a white slip, the bank wouldn't actually give BMW any money. Now that I have a VIN # I'm thinking the bank might be ok. I'd rather take my lower rate from the bank.

Does anyone in Austin know of any great loan sources? Austin Telco is looking good so far.

Capital One Financial on line has about 4.7% or so for 48 months and lower for 36 months depending on your credit score. I don't know what the local rates here are in Austin. IBM Credit Union on North Burnet Road has good rates sometimes, I don't think you need to work for IBM to do business with them. How did you negoitate the deal on your car, given that the rebate is only valid for January? Some people are getting big discounts on 330 ZHP cars, I've heard up to $6000 off MSRP because of the $3800 rebate this month plus additional discount. There is about a $7000 mark up on an ZHP if you include the rebate. Did you negoitate some amount over invoice - rebate if it's there or did you negotiate a set price?

Just wondering as I am either buying a 325 that is coming in at the end of Feburary (Advantage in Houston) or a 330 this month or later. I negotiated 1000 over dealer cost for the one in Houston and agreed to give them 20% of any rebate that is available. I find the sales people here in Austin to be difficult, they are not happy with me because I wanted to test drive alot. The Sales Manager Jess however is a good guy and have recommended people to him. Garlyn Shelton BMW in Temple and Bryan are good dealers to buy at, they don't have a markup for advertising like most other dealers in bigger cities (about $500) pay directly to BMW for each car or so they claim.

Even if you have a car on order you can tell the dealer that you will not buy it from them if you are not happy with the way you are being treated or they are adding cost to it. I believe they have to take you name off of it and put it back in the inventory. At that point you can negotiate through another dealer for the same car, they can pull it out of inventory. Don't feel any pressure to take their financing, they will not treat you any differently if you do, when you come in for service nobody in service is going to know or care where you got your financing or where you bought your car. Most car dealers have seperate accounting for service and all dealers have to service your car no matter where you buy it. If they ask you to take their financing ask them for additional discount on the purchase price or a much lower rate. If they don't want to do it use your own financing.

Regards
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Old 01-18-2005, 01:04 AM
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Quote:
Originally Posted by pjsatz
How did you negoitate the deal on your car, given that the rebate is only valid for January? Some people are getting big discounts on 330 ZHP cars, I've heard up to $6000 off MSRP because of the $3800 rebate this month plus additional discount. There is about a $7000 mark up on an ZHP if you include the rebate. Did you negoitate some amount over invoice - rebate if it's there or did you negotiate a set price?

Just wondering as I am either buying a 325 that is coming in at the end of Feburary (Advantage in Houston) or a 330 this month or later. I negotiated 1000 over dealer cost for the one in Houston and agreed to give them 20% of any rebate that is available. I find the sales people here in Austin to be difficult, they are not happy with me because I wanted to test drive alot. The Sales Manager Jess however is a good guy and have recommended people to him.
Hi PJSatz,
Yeah I'm not thrilled with the people here in Austin. I was working with a nice guy named Vic Crawford. About a week after we made our deal, he left BMW of Austin. The guy i'm stuck with now is kind of an oddball who doesn't seem to care about me too much. Anyway I found that the internet dealer in San Antonio was extremely nice and helpful- and was easy to negotiate with. So I went to Austin after having called the Internet depts of about 10 different dealers from Dallas and Houston to San Antonio. Since I was doing ED, I basically asked for 750 over ED invoice, and they agreed to it. (Jess gave the ultimate approval). They also threw in both regular floormats and the rubber all-season mats. The only downside to Austin is that they have a rather high MACO fee compared with some other dealers. Anyway I got the car for 750 over invoice so if I was really overcharged on MACO, it works out to maybe 1000 over invoice?

It's funny though - I had exactly the same problem with test driving. At first they wouldn't even let me test drive the ZHP - they told me it was rare, and like an M3, only serious test drivers would be considered. Anyway after thanksgiving, I wanted to do a side by side test with BMW vs Infinit G35 (back to back at least). They were really hesitant to let me do that extra test drive.

As for financing, I found Austin Telco had a 3.95% financing, but I probably can't use them because of the ED situation. And if you're looking, the current marketing rebates at the dealer might be cheaper than the ED discount (though I really want to go to Europe so I'm still happy).

If you have any questions about BMWoA, lemme know I'll gladly relay my experiences.
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Old 01-18-2005, 02:00 AM
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Sounds like a great deal and a trip to Europe to go with it. Very good. I hadn't really thought about the Euro Delivery thing, maybe something to consider.

For the Ultimate Driving Machine, they sure don't like to drive them very much here. The salesman that you have now may not be making much of anything on your deal so hence the attitude. There's one salesman over there who's atleast 300 lbs., I didn't like to test drive with him, because well I didn't know if totally changed the dynamics of the car or what . It really wasn't anything personal and I probably shouldn't talk about him but it was kind of an awkward/funny situation and he gave me dirty looks whenever I went in there after that. They really need another dealer here in Austin, that would probably help alot.
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Old 01-18-2005, 07:40 AM
LDV330i LDV330i is offline
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Quote:
Originally Posted by icemanjs4
Hi PJSatz,
Since I was doing ED, I basically asked for 750 over ED invoice, and they agreed to it. (Jess gave the ultimate approval). They also threw in both regular floormats and the rubber all-season mats. The only downside to Austin is that they have a rather high MACO fee compared with some other dealers. Anyway I got the car for 750 over invoice so if I was really overcharged on MACO, it works out to maybe 1000 over invoice?

.
MACO fees do not apply to ED cars. This has been discussed extensively in the ED forum. See this thread. $750 has been the lowest fees I have ever seen mentioned. It looks like the dealer probably also thought it was too low and try to make it up by trying to charge you MACO fees. I would ask that those fees be removed.

I am really surprised that you were able to get anything below ED MSRP. People in Austin have always complained about the Austin dealers lack of willingness to negotiate.
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Old 01-18-2005, 10:43 AM
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Can anybody confirm that MACO fees can't be charged on ED cars? What about training fees or anything else weird like that. I actually have on my BMW order slip the words "750 over invoice" marked down. Would Sarafil or any of the other dealers like to chime in?
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Old 01-18-2005, 10:48 AM
jetstream23 jetstream23 is offline
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Quote:
Originally Posted by icemanjs4
Can anybody confirm that MACO fees can't be charged on ED cars? What about training fees or anything else weird like that. I actually have on my BMW order slip the words "750 over invoice" marked down. Would Sarafil or any of the other dealers like to chime in?
I can't confirm it but I think I can assume it. MACO is a regional advertising fee and I'd be 90% sure it shouldn't apply to an ED car. Also, I think MACO is $300 regardless of where you are in the U.S. Can someone confirm that?
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Old 01-19-2005, 12:35 AM
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bump..

Does anyone else know for sure that ED cars don't get MACO fees?
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