[KING.]

A little background I am interested in doing the BMW Select due to the fact that my credit score is low and my credit union already denied me. My mother is consigning with me her score is 650 and mine is 555. I was approved for the BMW Select. I have 30,000 to for a down payment. I am in NY. *I will explain more later.

I went to a first dealership seeking a 440i xDrive Convertible. Through conversation she stated that the 2018 is in production and we can built one now to be delivered mid May/Early June. I agreed.

We built the car and it came up to 67,000. However, not with everything I wanted. The missing add ons were; Active Cruise Control, Individual Paint and Wireless Charging. She asked me if mothers credit was good and I said yes she gave me a guesstimate rate of 3.45% and the ballon Payment was 31,000. The term was for 36 months at $247/month. I told the salesman that will return back with my mother to finalize things.

After various research and building the car on my own with out the pressure of the dealership. The MSRP is 69,545 and Invoice is 65,335.

I went to another dealership with my findings. However, I told him that I got a previous offer of 67,000 with everything I wanted in the car. He agreed and said that he will honor that and find the best possible rate for me. I explained to him that I am seeking BMW Select. He said that he will run the credit and see if I am approved for it. I was approved. He looked at a chart and compared what I said my mothers credit score is and he gave me a rate of 6.15% with a $31,000 ballon payment at the end. The term was for 36 months at $523/month.

What should be my next step?
Should I stay with the second deal?
Should I go to a third and fourth dealership to get a lower rate or a lower price?

Please help.

 

[Eagle11]

A little background I am interested in doing the BMW Select due to the fact that my credit score is low and my credit union already denied me. My mother is consigning with me her score is 650 and mine is 555. I was approved for the BMW Select. I have 30,000 to for a down payment. I am in NY. *I will explain more later.

I went to a first dealership seeking a 440i xDrive Convertible. Through conversation she stated that the 2018 is in production and we can built one now to be delivered mid May/Early June. I agreed.

What should be my next step?
Should I stay with the second deal?
Should I go to a third and fourth dealership to get a lower rate or a lower price?

Please help.

First off if your credit score is that low, fix it, your mothers score isn't that high either and wont get a great rate through BMWFS.

Take your 30K, fix your credit and once you can get the car on your own (no reason to use your mother to get a car) then get the car. One thing you need to remember is BMW select is not the best way to get a BMW, even if you are putting down 30K.

 

[jjrandorin]

A little background I am interested in doing the BMW Select due to the fact that my credit score is low and my credit union already denied me. My mother is consigning with me her score is 650 and mine is 555. I was approved for the BMW Select. I have 30,000 to for a down payment. I am in NY. *I will explain more later.

I went to a first dealership seeking a 440i xDrive Convertible. Through conversation she stated that the 2018 is in production and we can built one now to be delivered mid May/Early June. I agreed.

We built the car and it came up to 67,000. However, not with everything I wanted. The missing add ons were; Active Cruise Control, Individual Paint and Wireless Charging. She asked me if mothers credit was good and I said yes she gave me a guesstimate rate of 3.45% and the ballon Payment was 31,000. The term was for 36 months at $247/month. I told the salesman that will return back with my mother to finalize things.

After various research and building the car on my own with out the pressure of the dealership. The MSRP is 69,545 and Invoice is 65,335.

I went to another dealership with my findings. However, I told him that I got a previous offer of 67,000 with everything I wanted in the car. He agreed and said that he will honor that and find the best possible rate for me. I explained to him that I am seeking BMW Select. He said that he will run the credit and see if I am approved for it. I was approved. He looked at a chart and compared what I said my mothers credit score is and he gave me a rate of 6.15% with a $31,000 ballon payment at the end. The term was for 36 months at $523/month.

What should be my next step?
Should I stay with the second deal?
Should I go to a third and fourth dealership to get a lower rate or a lower price?

Please help.

You are not going to want to hear this, but you asked. There is no way in Heck someone with a 555 credit score should be looking at a 65k car, and BMW knows this too. One of the reasons you likely have a 555 credit score is making decisions like this. What you SHOULD do is take your 31k and put like 50% of it down on a "reasonable" car (like a car that is 30k).

Put the other 15k in the bank and pull from it to make your payments and then sell / trade in that car in 3 years (when presumably your credit score should be in the low 700s if you make all your payments), THEN get your BMW.

You dont need to explain to us why your credit score is that low.. it could be because of many things (divorce, etc) that are may have been somewhat unavoidable, but whats avoidable NOW is making a really bad decision, and getting a 65k car with a 555 credit score is a bad decision no matter how you look at it.

Note: I am NOT one of those people who thinks that everyone should never pay credit for anything, etc... but credit score is one of the single biggest things in your life that WILL effect EVERYTHING you purchase, unless you pay cash for everything. Car, house, even renting an apartment. Fixing that should be your number 1 priority, even if it means you need to drive an econobox type car until you get it fixed. Make the BMW a reward to yourself for getting your credit score to at LEAST the high 600 (higher than your moms score... somewhere around 680-700 minimum).

Other than that, BMW select is normally a BAD deal because it has a ballon payment at the end that MUST be paid, and your car WILL NOT be worth its ballon payment... so you will be either paying cash on a car that is worth several thousand less than what you will pay at that time, OR financing it. There IS no easy way out of it because WHEN you choose to sell it, you will be under water on it, perpetuating the cycle.

Couple this with the used car market that is RIGHT in the middle of tanking RIGHT NOW (and likely will be for the next few years) and you have a situation where you WILL GET SCREWED out of thousands and thousands of dollars.

Leasing and owners choice are different because at least you can give the car back. BMW select is pretty horrible in my opinion all the way around.

Dont... do...it.

 

[kjboyd]

what he said ^

 

[AksNasZasNas]

what he said ^

Plus 1. And I emphasize that a car is a depreciating asset. Your $31k in the bank (even with today's low interest rates) is not.

 

[ard]

What should be my next step?
.

+3

YOU should absolutely NOT be buying a new car. Period.

Take your 30k, buy a 3 year old lease return w/30k... add a 6/100 warranty...drive it for 8-10 years. And not a convertible- dumb primary car for NYC.

You planning on being a renter, of living at home, and having a car payment your whole life??

 

[VitaminHan]

Not sure how long it took the OP to accumulate the $30K down payment. If that's only 1 year then just go for it, if that's 5 years then I would recommend to follow all the suggestions above and get a car that fits the situation better.

My colleague drives a Fusion, although he said many times he wants a C300. I asked him once, and he told me he has enough cash in the bank to buy the car outright, but he must keep the money as emergency fund, so the time is still not ready

 

[Alpine300ZHP]

Also, don't do a select. You are setting yourself up for a disaster with select. Either lease the car, finance the car or pay cash. Balloon notes are for people who don't know what they are doing


Sent from my iPhone using Bimmerfest

 

[rhite95]

you are not going to want to hear this, but you asked. There is no way in heck someone with a 555 credit score should be looking at a 65k car, and bmw knows this too. One of the reasons you likely have a 555 credit score is making decisions like this. What you should do is take your 31k and put like 50% of it down on a "reasonable" car (like a car that is 30k).

Put the other 15k in the bank and pull from it to make your payments and then sell / trade in that car in 3 years (when presumably your credit score should be in the low 700s if you make all your payments), then get your bmw.

You dont need to explain to us why your credit score is that low.. It could be because of many things (divorce, etc) that are may have been somewhat unavoidable, but whats avoidable now is making a really bad decision, and getting a 65k car with a 555 credit score is a bad decision no matter how you look at it.

Note: I am not one of those people who thinks that everyone should never pay credit for anything, etc... But credit score is one of the single biggest things in your life that will effect everything you purchase, unless you pay cash for everything. Car, house, even renting an apartment. Fixing that should be your number 1 priority, even if it means you need to drive an econobox type car until you get it fixed. Make the bmw a reward to yourself for getting your credit score to at least the high 600 (higher than your moms score... Somewhere around 680-700 minimum).

Other than that, bmw select is normally a bad deal because it has a ballon payment at the end that must be paid, and your car will not be worth its ballon payment... So you will be either paying cash on a car that is worth several thousand less than what you will pay at that time, or financing it. There is no easy way out of it because when you choose to sell it, you will be under water on it, perpetuating the cycle.

Couple this with the used car market that is right in the middle of tanking right now (and likely will be for the next few years) and you have a situation where you will get screwed out of thousands and thousands of dollars.

Leasing and owners choice are different because at least you can give the car back. Bmw select is pretty horrible in my opinion all the way around.

Dont... Do...it.

+4