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Right now, a few vehicles are offered at 0.9% and 3.9%, but the majority are offered at 2.9%. As the MY 2009s rolled out, were most offered at say 2.9% initially with the slower sellers then being dropped to 0.9% and the quick movers increasing to 3.9% (or something like that)? With the state of the economy, APR incentives for MY 2010 may different from MY 2009, but I'm try to gauge if there has historically been a typical time during which most models are offered at 0.9% or the lowest APR.
 

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as far as BMW's are concerned, this is the first time they have had any kind of real APR specials. so when approaching it from a historical perspective there is zero data. who knows what state the economy and car sales will be in for MY2010. speculation is all we have right now...
 

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as far as BMW's are concerned, this is the first time they have had any kind of real APR specials. so when approaching it from a historical perspective there is zero data. who knows what state the economy and car sales will be in for MY2010. speculation is all we have right now...
Great answer!
 

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A few scenarios for 2010 seem most likely...

1. Market continues to be bad with low sales but manufacturers continue to produce and vehicles will be as cheap or cheaper than now (meaning cash and APR incentives continue to be robust)

2. Market continues to be bad with low sales but manufacturers do a better job matching production to demand and find some equilibrium where prices start to normalize (e.g. you're buying between invoice and MSRP with only mild incentives, if any. Not many screaming deals.)

3. Market has improved, stimulus is working, etc. but manufacturers have not yet ramped up production (because they will likely wait to be sure of recovery first) and vehicles may actually be in limited supply.

I think number 2. is most likely. Lots of car makers are learning a tough lesson right now but the inventory overhang will wear off in the coming months and lower demand will be met by equally lower supply.

Just my opinion.
 

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I think number 2. is most likely. Lots of car makers are learning a tough lesson right now but the inventory overhang will wear off in the coming months and lower demand will be met by equally lower supply.
+1. The best deals will be gotten this year. Even if the economy is in the tank next year, the manufacturers will do a better job of matching production to demand.
 

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Right now, a few vehicles are offered at 0.9% and 3.9%, but the majority are offered at 2.9%. As the MY 2009s rolled out, were most offered at say 2.9% initially with the slower sellers then being dropped to 0.9% and the quick movers increasing to 3.9% (or something like that)? With the state of the economy, APR incentives for MY 2010 may different from MY 2009, but I'm try to gauge if there has historically been a typical time during which most models are offered at 0.9% or the lowest APR.
This is not a direct response, but it is meant to provide some perspective. I used to teach Financial Mgt, and one of the basic lessons was that for loans of short durations, changes in the interest rate did not have much of an effect on the payments. So I ran the numbers, using a $40,000 loan for 48 months and no down payment. The difference between 2.9% and 3.9% was less than one monthly payment. I'll try to paste the numbers below:

Amount financed $40,000 $40,000 $40,000
Months 48 48 48
Interest rate 2.9% 0.9% 3.9%
Mo. Payment $883.61 $848.74 $901.37
Total Payments $42,413.10 $40,739.32 $43,265.92
Difference $0.00 ($1,673.79) $852.82

(I can't get the table to have a nice layout. Let me know if you want the spreadsheet.)
 

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I was fortunate enough to get 0.9% for 60 months. The total finance charge for 60 months on my 535i was $1,500. Instead of paying it off early, I'll pay on my student loans instead. Two private loans at 5% and one consolidated loan at 2.625%. I though the consolidated loan was low, but I'd be a fool to pay off the car early. I could even put the excess money I would've used to pay on the car in my ING account and make money instead of paying off the car.
 

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Discussion Starter #8
This is not a direct response, but it is meant to provide some perspective. I used to teach Financial Mgt, and one of the basic lessons was that for loans of short durations, changes in the interest rate did not have much of an effect on the payments. So I ran the numbers, using a $40,000 loan for 48 months and no down payment. The difference between 2.9% and 3.9% was less than one monthly payment. I'll try to paste the numbers below:

Amount financed $40,000 $40,000 $40,000
Months 48 48 48
Interest rate 2.9% 0.9% 3.9%
Mo. Payment $883.61 $848.74 $901.37
Total Payments $42,413.10 $40,739.32 $43,265.92
Difference $0.00 ($1,673.79) $852.82

(I can't get the table to have a nice layout. Let me know if you want the spreadsheet.)
Thanks, b-y. I know that the difference between the rates is not that significant. I can live with 2.9%, but 0% or 0.9% seem so much more appealing (psychological, I'm sure). A 2010 335i coupe at 2.9% or less is in my cross-hairs at the moment. Just keeping my fingers crossed.
 

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Thanks, b-y. I know that the difference between the rates is not that significant. I can live with 2.9%, but 0% or 0.9% seem so much more appealing (psychological, I'm sure). A 2010 335i coupe at 2.9% or less is in my cross-hairs at the moment. Just keeping my fingers crossed.
0.9% and 2.9% are negligable differences and you are right, it is very psychological... 9/10 if BMW take away a kick a$$ deal, like trunk money or rate, it is replaced with something else to keep payments the same...

When they take away copious amounts of trunk money it is usually replaced with smoking money factors or interest rates and vice versa... But with the market where it is i am sure they will have something back that will make it a buyers market.
 
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