Help! ED Loan, what was your experience

[V8FunNaturally]

I am financing my ED M3 to get the current $1.5k financing bonus. I only want to finance a minimum amount. My dealer's financial manager says that the first payment must be made 60 days after signing the loan in the European Delivery case. That means 2 months of extra interests accruals before I am allowed to make the first payment. Why couldn't I make the first payment when I sign the contract ? the F.M. says BMW requires 60 days before 1st payment for ED. Is that true ? If you have done ED with a loan when was your first payment from signing ?

It is a 24 months loan. I plan to pay it off as soon as possible. F.M. says the earliest to pay off the full loan balance is 6 months. But the bmw financial services contract form, section 4., states "IF I PAY OFF THIS CONTRACT EARLY, I WILL NOT HAVE TO PAY A PENALTY."
This is the contract so I assume from a purely legal stand I could pay the whole balance off after 1 month.

Since my loan amount is not so big, 6 month interests is not huge either but now I am not sure what to do.

P.S. My car is already produced and I have a copy of the ED purchase order.

[MCPilot]

My experience was a little different earlier this year. I had to take a loan of at least $10K and make at least 3 monthly payments before I could pay the loan off in order to get the deal on the car. I had to complete the financial part of the purchase at least 14 days prior to pick up of the car in Munich. Monthly payments started immediately - I made 2 payments prior to the car being delivered stateside.

HTH

[W Cole]

I thought if you financed through BMW you didnt start paying interest until you received your car stateside?

[alee0729]

Originally Posted by W Cole

I thought if you financed through BMW you didnt start paying interest until you received your car stateside?

European Delivery is different. Your car has be either paid for or actively financed when you take delivery in Europe. At the point you get the keys in Germany, you own the car.

[cme]

1st exactly one month after I signed paperwork. Still waiting for my car in the US.
Paid on 6/15. ED on 6/27. 1st payment on 7/15.
Chet

[V8FunNaturally]

Originally Posted by MCPilot

My experience was a little different earlier this year. I had to complete the financial part of the purchase at least 14 days prior to pick up of the car in Munich. Monthly payments started immediately - I made 2 payments prior to the car being delivered stateside.
HTH

Originally Posted by cme

1st exactly one month after I signed paperwork. Still waiting for my car in the US.
Paid on 6/15. ED on 6/27. 1st payment on 7/15.
Chet

Thanks, that is what I thought. I will demand the same.

[TTG]

Originally Posted by alee0729

European Delivery is different. Your car has be either paid for or actively financed when you take delivery in Europe. At the point you get the keys in Germany, you own the car.

+1..... 100% agreed.

[calintexas]

I think what the dealer finance manager means but isn't saying is that the dealership looses whatever loan origination fee (kickback/incentive) it gets from BMW Financial if you pay the loan off quicker than in 6 months. If you don't care about the dealer (it's unlikely they actually care about you) then it doesn't matter when you pay your loan off.

You can keep everyone happy (sort of including you) by paying your loan down to say $100.00 really early and then sitting on that balance and the insignificant interest accumulating on it for 6 mo. and then doing the payoff. It's a PIA though. It's possible that you can start paying on your loan through the BMW website shortly after the loan is active (before the first payment is due). I financed a small amount to get a savings like you are doing, but didn't have the ED complication. It's been too long for me to remember when I could start paying on the loan.

[LOVEM]

I think what the dealer finance manager means but isn't saying is that the dealership looses whatever loan origination fee (kickback/incentive) it gets from BMW Financial if you pay the loan off quicker than in 6 months. If you don't care about the dealer (it's unlikely they actually care about you) then it doesn't matter when you pay your loan off.

+1

[templarklimek]

Gents, any input or thoughts you may have in this would be appreciated.


I finished my owners choice loan this month and ended up refi'ing the car over the phone with BMW actual rather than my dealer. Admittedly my credit isn't as strong as it was from suffering business downturn during the "recession" and the dealer was quick to inform me of this and seemed to rub it in my face. I assumed they had run my loan through BMW as this point and received a nogo from them. My dealer/SA momentum BMW in Houston was rather rude and condescending to me about this. My SA said that they may have some options though like he was doing me a big favor even talking to me. I've bought SIX cars from them in 5 years, I didn't appreciate the rudeness. I emailed them back stating that I wasn't going to beg BMW to give them money. My SA never even rendered me the courtesy of a response.

2 weeks later BMW calls asking if I wanted to refi the car. 45 mins later the deal and paperwork are done, no issue. Why would my SA/dealer discard a long term customer like that? Due to that I won't be buying another BMW or Mini or Audi from momentum group in Houston.

I emailed my Sa again the same day asking if they submitted my credit app, no response.

My next BMW will be bought from Steve Thomas on the site.

Thank you for your thoughts.

[V8FunNaturally]

Originally Posted by templarklimek

Gents, any input or thoughts you may have in this would be appreciated..

Too many people get into a car that is beyond their means. Driving a car on borrowed money (loan) does not make it your car until you pay it all off. Certainly if a lender decides you're not financially sound to refinance your loan to take over the title from your previous loaner and let you keep on riding a car with a bad financial background, it is their prerogative, I find it quite insolent for you to complain about it. You've no right to that car. Start by buying what you can afford then you will get the respect you deserve for owning the things you have paid for or can easily pay and not actually riding in someone else's car (the bank).
That said bankers are crooks and what's worse they never get held accountable under the existing government laws.
Not to forget stealers are greedy and most lost any sense of customer service.
Just crooked bankers, greedy businesses, and the over spending individuals. The laws have failed to prevent all that, in fact they're being decided by the same forces. There you have it, corrupted capitalism.