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Old 02-17-2020, 10:43 AM
JReynolds JReynolds is offline
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Ordering a 330 from factory questions locking in incentives

How does it work exactly can anyone shed light.

Dealership I'm working with says they apply to BMW Financial and also their own lenders at time of order.

I'd rather that they apply only with BMW since that locks me in to the incentives and gives me a full 60 days (their lenders is 30 days expiration).

Anyone have experience with this?

Thanks.
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Old 02-17-2020, 01:23 PM
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Dealership I'm working with says they apply to BMW Financial and also their own lenders at time of order.
It's your credit. Instruct the dealer to submit your application only to BMW FS if you are not interested in other lenders.

The risk, of course, is that you will not be considered for any offers the dealer might have brokered on better terms than BMW FS.
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Old 02-17-2020, 02:10 PM
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Originally Posted by JReynolds View Post
How does it work exactly can anyone shed light.

Dealership I'm working with says they apply to BMW Financial and also their own lenders at time of order.

I'd rather that they apply only with BMW since that locks me in to the incentives and gives me a full 60 days (their lenders is 30 days expiration).

Anyone have experience with this?

Thanks.
Three words if they force this: turn and run!

What state are you in?

We get 90 days plus.
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Old 02-17-2020, 03:31 PM
JReynolds JReynolds is offline
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It's your credit. Instruct the dealer to submit your application only to BMW FS if you are not interested in other lenders.

The risk, of course, is that you will not be considered for any offers the dealer might have brokered on better terms than BMW FS.
You're right. It is my credit.

You bring up a good point about potentially missing out on better rates.

I was also thinking that once the car is delivered I may exercise the option at the time if I want.

Or am I locking myself in and then wouldn't be able to?
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Old 02-17-2020, 03:38 PM
JReynolds JReynolds is offline
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Three words if they force this: turn and run!

What state are you in?

We get 90 days plus.
Really - what makes you say this Jon why would this be a negative thing if the dealership is forcing this. I knew I didn't necessarily want to do it that way and in general don't want to run my credit for no good reason but appreciate your help so I know what to look out for.

I am in Florida. Why is the time lock different length in different states.
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Old 02-17-2020, 10:06 PM
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Really - what makes you say this Jon why would this be a negative thing if the dealership is forcing this. I knew I didn't necessarily want to do it that way and in general don't want to run my credit for no good reason but appreciate your help so I know what to look out for.

I am in Florida. Why is the time lock different length in different states.
Personally I would not want to do business with a dealer who did not acquiesce to my wishes ~ for any reason.

If you only want BMWFS finance, why would anyone let a dealer try the blitzkrieg approach and send to many lenders (and drive your credit score lower with each credit bureau inquiry in the process).
Not a smart strategy in my opinion. Like McDonalds, you should be able to/can "have it your way"..

People are under the mistaken impression that BMWFS credit locks are valid for 60 days. That is not true. It is 60 days from the expiration date of the bulletin under which the application was submitted.

For example, let's say you submitted an application on 2/14. Your approval is valid for 60 days from 3/2, not a straight 60 days. Sadly, most Client Advisors don't even realize this subtle yet significant distinction.

Here on the West Coast we get 90. Because it takes vehicles longer to get here (through the Panama Canal).

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Old 02-18-2020, 05:09 AM
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I was also thinking that once the car is delivered I may exercise the option at the time if I want.

Or am I locking myself in and then wouldn't be able to?
Most incentives (Loyalty, Conquest, OL Coupon for Chinese New Year, etc.) are provided by BMW Financial Services. If you don't buy or lease through BMWFS, you don't get the incentive.

Yes, if you are purchasing, you may find a lower interest rate at a credit union or other lender. The preferred strategy here is to finance the car from BMWFS to get the incentives, then refinance the car after you've made 3 monthly payments with the credit union. (If you refinance before you've made that third payment, the dealer gets charged back. Poor form and bad karma).

But I can think of zero reasons why you'd want two separate credit pulls for the same purchase. It sounds like some local lender is paying your dealer more than BMWFS to initiate loans. What's in it for you?

And, Jon, you've been eating too many In and Out Burgers. It was The King, not Ray Kroc who proclaimed:

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Old 02-18-2020, 05:33 AM
SteveinArizona SteveinArizona is offline
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Originally Posted by jon shafer View Post
personally i would not want to do business with a dealer who did not acquiesce to my wishes ~ for any reason.

If you only want bmwfs finance, why would anyone let a dealer try the blitzkrieg approach and send to many lenders (and drive your credit score lower with each credit bureau inquiry in the process).
Not a smart strategy in my opinion. Like mcdonalds, you should be able to/can "have it your way"..

People are under the mistaken impression that bmwfs credit locks are valid for 60 days. That is not true. It is 60 days from the expiration date of the bulletin under which the application was submitted.

For example, let's say you submitted an application on 2/14. Your approval is valid for 60 days from 3/2, not a straight 60 days. Sadly, most client advisors don't even realize this subtle yet significant distinction.

Here on the west coast we get 90. Because it takes vehicles longer to get here (through the panama canal).

+1
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Old 02-18-2020, 06:32 AM
JReynolds JReynolds is offline
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Originally Posted by Jon Shafer View Post
Personally I would not want to do business with a dealer who did not acquiesce to my wishes ~ for any reason.

If you only want BMWFS finance, why would anyone let a dealer try the blitzkrieg approach and send to many lenders (and drive your credit score lower with each credit bureau inquiry in the process).
Not a smart strategy in my opinion. Like McDonalds, you should be able to/can "have it your way"..

People are under the mistaken impression that BMWFS credit locks are valid for 60 days. That is not true. It is 60 days from the expiration date of the bulletin under which the application was submitted.

For example, let's say you submitted an application on 2/14. Your approval is valid for 60 days from 3/2, not a straight 60 days. Sadly, most Client Advisors don't even realize this subtle yet significant distinction.

Here on the West Coast we get 90. Because it takes vehicles longer to get here (through the Panama Canal).

Thanks for explaining about the running away.

And the information about locks is very helpful I had read that somewhere else but had forgotten that it is actually 60 days from when it expires. But you're right that the advisor has not put it in that way it is always described as locked for 60 days that's it.
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Old 02-18-2020, 06:42 AM
JReynolds JReynolds is offline
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Most incentives (Loyalty, Conquest, OL Coupon for Chinese New Year, etc.) are provided by BMW Financial Services. If you don't buy or lease through BMWFS, you don't get the incentive.

Yes, if you are purchasing, you may find a lower interest rate at a credit union or other lender. The preferred strategy here is to finance the car from BMWFS to get the incentives, then refinance the car after you've made 3 monthly payments with the credit union. (If you refinance before you've made that third payment, the dealer gets charged back. Poor form and bad karma).

But I can think of zero reasons why you'd want two separate credit pulls for the same purchase. It sounds like some local lender is paying your dealer more than BMWFS to initiate loans. What's in it for you?

And, Jon, you've been eating too many In and Out Burgers. It was The King, not Ray Kroc who proclaimed:

Right. That's what I understood too that it must be through BMWFS.

But you bring up something I don't think I had realized until you just said it now.

Are you saying that those other lenders would NOT count as going through BMW FS - because if that is the case then it makes even less sense why we would want to do do that. I think I was assuming that even the other lenders would be considered as BMW FS like when the loans get sold or whatever.

I would not mind at all keeping the loan for 3 months or however long if I knew why I was doing it and it helped out the dealership (within limits if it was like 6% APR then I might think think twice but even then if I got a fair deal and the dealership was good to deal with and straightforward I would do the calculations and just know why I'm doing it).

Yes right on the credit pulls too.

This is all helpful.
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Old 02-18-2020, 06:52 AM
SteveinArizona SteveinArizona is offline
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I had intended to pay cash for my car. But there was a $4K financing incentive. If you finance with BMWFS and you pay it off within three months, BMWFS goes back after the dealership. I didn't want that to happen. So I made four payments (one extra to be safe) and then paid off the loan. That way I was fine and the dealership was fine.

My view has always been that I want a partnership with my dealership. I don't necessarily demand the best deal when I buy a car but I want to be fairly treated in the process. I had many problems with my earlier BMW (2016 330e) and the dealership service manager helped me convince BMWNA to buy back the car. Without that help I am sure I would have eventually prevailed but it certainly made it easier to have a good relationship.
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Old 02-18-2020, 07:03 AM
JReynolds JReynolds is offline
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I had intended to pay cash for my car. But there was a $4K financing incentive. If you finance with BMWFS and you pay it off within three months, BMWFS goes back after the dealership. I didn't want that to happen. So I made four payments (one extra to be safe) and then paid off the loan. That way I was fine and the dealership was fine.

My view has always been that I want a partnership with my dealership. I don't necessarily demand the best deal when I buy a car but I want to be fairly treated in the process. I had many problems with my earlier BMW (2016 330e) and the dealership service manager helped me convince BMWNA to buy back the car. Without that help I am sure I would have eventually prevailed but it certainly made it easier to have a good relationship.
I would absolutely do 4 payments to do right by the dealership. So do you like tell them that? It's not like they've told me this is what they're worried about. I am still trying to get them to not use any other lenders as I didn't see the reason. If Quackbery is right that the other lenders would not even count as BMWFS then there really is no reason even more than I thought.

What do you think abut them running the application through BMWFS as opposed to doing It myself. I thought if I do myself just gives me a little more control in the process but maybe it doesn't matter. I just want to make sure they don't submit to other lenders.

So far my dealings with them have been straightforward for the most part. Now that we are talking about the financing it's where it's been most stuck just trying to make sure I understand what is going to happen and that they are clear about it.
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Old 02-18-2020, 10:15 AM
SteveinArizona SteveinArizona is offline
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I would absolutely do 4 payments to do right by the dealership. So do you like tell them that? It's not like they've told me this is what they're worried about. I am still trying to get them to not use any other lenders as I didn't see the reason. If Quackbery is right that the other lenders would not even count as BMWFS then there really is no reason even more than I thought.

What do you think abut them running the application through BMWFS as opposed to doing It myself. I thought if I do myself just gives me a little more control in the process but maybe it doesn't matter. I just want to make sure they don't submit to other lenders.

So far my dealings with them have been straightforward for the most part. Now that we are talking about the financing it's where it's been most stuck just trying to make sure I understand what is going to happen and that they are clear about it.
Yes, I discussed it with my sales associate. The sales staff only concern is that BMW not come after them for the incentive. I even emailed the sales associate right before I paid it off to again let him know that I was doing it.
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Old 02-18-2020, 10:21 AM
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Yes, I discussed it with my sales associate. The sales staff only concern is that BMW not come after them for the incentive. I even emailed the sales associate right before I paid it off to again let him know that I was doing it.
So interesting.

How long ago was this - do you know if it's still the "3 months" rule about that.

Any thoughts on me doing the application myself versus letting them do it with BMW guess I want to kind of think about why they might really need to do it themeseves.
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Old 02-18-2020, 12:04 PM
SteveinArizona SteveinArizona is offline
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So interesting.

How long ago was this - do you know if it's still the "3 months" rule about that.

Any thoughts on me doing the application myself versus letting them do it with BMW guess I want to kind of think about why they might really need to do it themeseves.
Ask them. Mine was in October 2017.
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Old 02-19-2020, 08:36 PM
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This is what I have written in the lease many times. The incentives and lease deal applies at the time of the lease offer as written in the lease offer. If they are lower or better at the time of delivery you get that better deal. They will agree to that. If they don't just walk out the door and they will chase you down. Once the car is delivered you can always cancel and get your money back. The dealer knows that. They will agree to my approach.
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Old 02-20-2020, 06:20 AM
JReynolds JReynolds is offline
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This is what I have written in the lease many times. The incentives and lease deal applies at the time of the lease offer as written in the lease offer. If they are lower or better at the time of delivery you get that better deal. They will agree to that. If they don't just walk out the door and they will chase you down. Once the car is delivered you can always cancel and get your money back. The dealer knows that. They will agree to my approach.
You mean you write that right into the contract that they hand you to sign?
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Old 02-20-2020, 06:22 AM
JReynolds JReynolds is offline
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Personally I would not want to do business with a dealer who did not acquiesce to my wishes ~ for any reason.

If you only want BMWFS finance, why would anyone let a dealer try the blitzkrieg approach and send to many lenders (and drive your credit score lower with each credit bureau inquiry in the process).
Not a smart strategy in my opinion. Like McDonalds, you should be able to/can "have it your way"..

People are under the mistaken impression that BMWFS credit locks are valid for 60 days. That is not true. It is 60 days from the expiration date of the bulletin under which the application was submitted.

For example, let's say you submitted an application on 2/14. Your approval is valid for 60 days from 3/2, not a straight 60 days. Sadly, most Client Advisors don't even realize this subtle yet significant distinction.

Here on the West Coast we get 90. Because it takes vehicles longer to get here (through the Panama Canal).

Jon - I have another question for you (BTW I just realized you're the founder of this site - thank you for this incredible resource).

At the time of ordering do we need to choose every exact incentive we want to lock in? Or do they all get locking in automatically? I want to know if I need to make sure to know exactly which ones or if they just happen like by default.
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Old 02-20-2020, 09:24 AM
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quackbury quackbury is offline
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If Quackbery is right that the other lenders would not even count as BMWFS then there really is no reason even more than I thought.
When you've spent more time here, you'll realize that Quackbury is always right.

The ONLY way you get the incentives from BMWFS is to finance with BMWFS. Any other lender, and you lose them. If you are buying a used, non-CPO car, by all means check your bank, credit union, or Uncle Manny's Pawn, Loan and CBD Emporium for a competitive rate. But a new or CPO car? Never.

It's such a bad piece of advice that it waives all sorts of red flags in my mind about the dealer. Something I think Jon was hinting at but too polite to say. (I suspect Jon is really a Canadian at heart).
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Old 02-20-2020, 09:28 AM
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Old 02-20-2020, 02:26 PM
JReynolds JReynolds is offline
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When you've spent more time here, you'll realize that Quackbury is always right.

The ONLY way you get the incentives from BMWFS is to finance with BMWFS. Any other lender, and you lose them. If you are buying a used, non-CPO car, by all means check your bank, credit union, or Uncle Manny's Pawn, Loan and CBD Emporium for a competitive rate. But a new or CPO car? Never.

It's such a bad piece of advice that it waives all sorts of red flags in my mind about the dealer. Something I think Jon was hinting at but too polite to say. (I suspect Jon is really a Canadian at heart).
I'll be hanging around here plenty once I get the car!

Glad I checked out this forum before doing anything with the credit.
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Old 02-20-2020, 02:29 PM
JReynolds JReynolds is offline
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thank you! Puts my mind at ease! this whole thing has been a bit nerve wracking

Any "don'ts" you suggest when filling out the credit app?

Iv'e got the sedan NA as the model (I'm thinking that's North America), traditional finance - does it matter the exact down payment I will have. It defaults to 2500 - if I have more does it matter that I put it down.

Edited: meant to say traditional finance not lease

Last edited by JReynolds; 02-20-2020 at 02:41 PM.
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Old 02-20-2020, 02:30 PM
JReynolds JReynolds is offline
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Ask them. Mine was in October 2017.
Will definitely do this and make sure I do right by them.
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Old 02-21-2020, 05:24 AM
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You mean you write that right into the contract that they hand you to sign?
Yes. Also it is important to check the dealer's math. Lease hackr has a good online app.
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Old 02-21-2020, 05:26 AM
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Put down whatever that you desire within reason/
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