Thank you BMW finance!!!

[rickradian]

0.9% on the E90.

34% balloon payment.

Never would have thought I can pick one up for 730/month.

Thanks again.

[Sticky]

Great, now everybody is going to have one.

[gthirtyfizle]

^^ thats just on the e90 tho. So not everyone will have the e92 ahaha

[Mvisible]

the E92 isnt that far behind....they are offering 1.9%

[IWearScrubs]

A 34% balloon payment? better start saving...

[BRETT0429]

HOW DOES THAT WORK I WANT COUPE WITH 1.9 HOW DOES THE BALLON WORK LIkE A LEASE? DIFFRENT TERMS out there?
i'm in the car business so i know what a ballon is but how did you get it with .9%?
did you confirm this?

[BRETT0429]

to better understand what i'm asking is it a bmw select??? i'm very confused?
please help cause i left a deposit to get a coupe on a reg 1.9% it's a $71750 dct and i can get it for $67600 which i thinks a good deal on a dct tran?
thanks in advance

[rickradian]

I have the funds, why should I pay a down payment now when I can pay later especially with 0.9% financing. I can put the $21K in an high interest CD and collect 4-5% and come out ahead.

[rickradian]

Take the sale price x sales tax - down payment x financing charges then x .34. The total is what your payments will be and the rest is a balloon payment due at the end.

[mkoesel]

Originally Posted by rickradian

Take the sale price x sales tax - down payment x financing charges then x .34. The total is what your payments will be and the rest is a balloon payment due at the end.

Hmm, I'm not the smartest guy in the world, but I am confused by your formula.

"sale price x sales tax"? You wanted to add there, no?

Also, I am confused on what the finance charge is. Are you charged interest on the full transaction amount? I would think yes, correct? However, you are only charged principle on 66% of the transaction amount, correct?

Can you show me an example of how you calculated yours out? I don't know exactly how to go about plugging the numbers into an online loan calculator, although I think I could get it close by first calcing the interest for a standard loan at the total transaction amount and then calcing the principle for a standard loan at 66% of the total transaction amount...

This ends up being a lot like a lease, IMHO, since you are basically paying only on the residual value on a month to month basis. The big difference is that (generally speaking) you are going to be paying for five years instead of three, and that you are going to be responsible for getting rid of the car yourself at the end, rather than just giving it back. The big advantage appears to be that it is a much more favorable rate than a lease would be, at least right now.

I should add - if you were to make the payments as normal and then refinance the balloon at the end, then you'd basically be paying interest twice on the balloon. This, if I understand things correctly thus far. And probably the rate on the balloon would not be 0.9% because no one will give you that rate on a 5 year old used car. So basically unless you pay the balloon off at the end you are screwing yourself. Its just like if you lease a car just to get the low payment, and then plan to buy out the lease at the end - not a good deal.

But I do agree that putting the amount of the balloon into a high interest CD and then paying it later is a great move. Basically, it means you are getting the loan for free because the money you make on the CD will pay for the interest you've paid over the term of the loan...

[jaiman]

Basically, it is the same as an open ended lease. You take the risk that the car is worth less than 34% at the end of the loan.

[rickradian]

Originally Posted by jaiman

Basically, it is the same as an open ended lease. You take the risk that the car is worth less than 34% at the end of the loan.

Purchase price: $61500
Total Out the Door (7.5 tax): $66112

Down Payment: $2500
Total Financed: 63612

Interest Rate 0.9 %

Total Payout after 60 months including Interest Charges: $65077 ( $1084/month)

34% Balloon payment due at end of financing:

Balloon Payment: $65077 X 34% = $22126

Total Payout - Balloon Payment: $65077 - $22126 = $42951
Monthly Payment: $42951/60 = $715

Everyone is killing me on the balloon. Why should I put more down when the interest is so low. I'm not leasing the car, I am buying it and plan on keeping it a long time. I have the money to buy the car straight out. They are basically loaning me free money.

I would prefer to keep my payment as low as possible. Thats my decision.

[Dascamel]

Does anyone here use a real financial advisor?

[icemang17]

Originally Posted by rickradian

Purchase price: $61500
Total Out the Door (7.5 tax): $66112

Down Payment: $2500
Total Financed: 63612

Interest Rate 0.9 %

Total Payout after 60 months including Interest Charges: $65077 ( $1084/month)

34% Balloon payment due at end of financing:

Balloon Payment: $65077 X 34% = $22126

Total Payout - Balloon Payment: $65077 - $22126 = $42951
Monthly Payment: $42951/60 = $715

Everyone is killing me on the balloon. Why should I put more down when the interest is so low. I'm not leasing the car, I am buying it and plan on keeping it a long time. I have the money to buy the car straight out. They are basically loaning me free money.

I would prefer to keep my payment as low as possible. Thats my decision.

This looks like a good deal to me........my payment is nearly double that!!!

[Sedan_Clan]

Originally Posted by rickradian

Purchase price: $61500
Total Out the Door (7.5 tax): $66112

Down Payment: $2500
Total Financed: 63612

Interest Rate 0.9 %

Total Payout after 60 months including Interest Charges: $65077 ( $1084/month)

34% Balloon payment due at end of financing:

Balloon Payment: $65077 X 34% = $22126

Total Payout - Balloon Payment: $65077 - $22126 = $42951
Monthly Payment: $42951/60 = $715

Everyone is killing me on the balloon. Why should I put more down when the interest is so low. I'm not leasing the car, I am buying it and plan on keeping it a long time. I have the money to buy the car straight out. They are basically loaning me free money.

I would prefer to keep my payment as low as possible. Thats my decision.

Great explanation!

[!Xoible]

ooooo more irviners

[achenator]

Originally Posted by Dascamel

Does anyone here use a real financial advisor?

A real financial advisor would advise against buying a 70k car period.

[Sedan_Clan]

Originally Posted by achenator

A real financial advisor would advise against buying a 70k car period.

LOL, no kidding....

...yet, he/she will probably be driving a 70k car themselves.

[positiveions]

i am not sure if this is a good deal or not. I need some convincing. After 5 years you owe it or you trade it.
Plus, has anyone looked at the total interest paid by the end of the deal. It is not adding up to me.

[rickradian]

Originally Posted by eatrach73

i am not sure if this is a good deal or not. I need some convincing. After 5 years you owe it or you trade it.
Plus, has anyone looked at the total interest paid by the end of the deal. It is not adding up to me.

~$1500 in interest.

Why should I pay $20k upfront when it's only a difference in a few hundred dollars financing. If there was no 0.9% financing this would not work out as well. But the financing rate was what was the deciding factor. Why should they have my money now when I can keep it and earn interest or dividends.

[Technic]

I think that the idea of a balloon payment is messing people minds up in this deal... if you take this balloon payment as a reverse downpayment you will get to the same monthly payment.

The 0.9% applied to this type of financing -not a lease- and the close to invoice price is what makes this $715 monthly payment possible.

[mkoesel]

Originally Posted by Sedan_Clan

LOL, no kidding....

...yet, he/she will probably be driving a 70k car themselves.

LOL, no shit SC!

rickradian, thanks for the example. I am with you - this is a good deal.

And guys, if you don't like the balloon, then just calculate your own monthly payment based on having the whole loan paid off by the end of the term. There - now you have the whole thing financed at 0.9%, all set, all good, just like a normal 0.9% loan.

But, as rick has already pointed out, why do that when you can take that same money and earn interest on it, and then just pay off the balloon later? Its free money.

SC, how are you holding up? Me, I am starting to cave. I just might have an M3 by next week, just maybe...