[e902cool]

1st time BMW owner here, time to think about finance as my car will be here end of month.

The Sales Rep told me that BMW Finance will be 9 out of 10 times have the best rate around. Is this true given I have excellent credit?

Should I spend time shopping around?

I have previously owned Honda and Mazda and their finances are the lowest, just wonder if is the same for BMW.

Thanks a lot! cant wait ...

[FrankoQ]

Do you mean lease or purchase?

If purchase, shop around.
BMWFS rates are high. 2 weeks ago, they were higher than 6%
(that is with good credit in Maryland)

Credit unions are your best bet for low rates.

My car should be ready by the end of the month too.

hope that helps.

[Eiso]

Yeah, BMW rates are not necessarily the best. Shop around, as credit union are dying to borrow money to you, as I heard. Toyota was my lowest when I got my Scion.

btw, when in Texas are you located?

[e902cool]

to FrankoQ, I think I will shop around then, 6% that doesnt sound too bad... it is purchase BTW
I will def try to credit union....

to eiso, here in Austin so I will try the UFCU...
how are the rates in Houston? i only heard momentum from there, i dunno about rates, but their prices are pretty high to me.

Thanks!

[Eiso]

Originally Posted by e902cool

to FrankoQ, I think I will shop around then, 6% that doesnt sound too bad...
I will def try to credit union....

to eiso, here in Austin so I will try the UFCU...
how are the rates in Houston? i only heard momentum from there, i dunno about rates, but their prices are pretty high to me.

Thanks!

Momentum salespersons are terrible, not all, but most. Rates are ok depends on your credit and MANY things else. If you decided to drive your normal daily beater to purchase a new car, please wait 10 mins for someone to come by and serve u

[nanpenyo]

(1) Research at bankrate.com;
(2) Get a loan yourself;
(3) Bring the offer to the dealer to get a competitive rate

[Golfguyjax]

I just went throught the same process. I ended up using a credit union (Vystar) and got 6% for 60 months with excellent credit. My CA told me the best he could do was 6.75%. Bankrate only listed internet lenders for auto loans (Capital One & ELoan), both were higher than the CU. Good Luck!

[e902cool]

Thanks, I just got a pre-approved CU rate of 5.5% for 48 months...
with excellent credit. That sounds pretty good to me.

I will see what BMWF can give me.....

Thanks everyone!

[tl_boy]

I got 5.1% arranged through Advantage Midtown in Houston, via Citi Financial Auto.

[Malvoe1]

tl boy - that is a sweet rate. How much and for how long? I need to arrange financing for when my car gets here in 2 weeks or so.

[e902cool]

yeah tl_boy, tell us more about the details...
I will definitely try out CITI auto loan too....

[nanpenyo]

Originally Posted by e902cool

yeah tl_boy, tell us more about the details...
I will definitely try out CITI auto loan too....

Don't try too many times. It hurts your credit rating.

Also don't forget: sometimes there are fees for auto loans.

[geeslice]

I'm in VA and my credit is considered excellent. I got these rates all within the last two weeks.

BMW financial offered me 5.7% for 60 months

USAA is 6.24% for 60 months.

Pentagon Federal CU is 5.24% for up to 72 months

Exchange Bank (a bank I have from back when I lived in Kansas) gave me 5.19% for 60 months.

Hope that helps!

[nanpenyo]

Many banks have increased their rates recently. Anything around 6% should be good now. Some dealers may not accept loans from company like Capital One for it is not a "Bank". Make sure you ask the dealer for the policy before shopping your auto loan.

[kevbh]

geeslice - thanks for the information, I had been wondering what BMW might be offering. Considering that we are in a rising rate environment, and have been for while now, it looks like you had some really good qoutes - most of which are 1% under the bankrate.com averages posted today.

I've also been considering using my home equity line. The rate isn't very competitive since it's tied to prime, but I really like the tax deductible aspect which would lower the effective rate in the grand scheme of things. It also gives you the ability to set your own amortization schedule. Hmmm - with a 15 year amortization I could have upgraded to the 330i... or if I spread the payments over 30 years I could go Porsche.

The good news is that with car loans, the rate doesn't make a huge difference like it does with a mortgage.

You definitely want to shop around ahead of time before sitting down with the finance guy at the dealership. With indirect auto lending - the finance guy will have several banks (and BMW financial) that he shops your loan to. He already knows what rate they offer for a given credit score/dollar amount/term based on a matrix. If he can get you to agree to a rate higher than what they are offering, he typically gets to split the difference with the bank. This is why it is important to have at least one offer in hand before you sit down with him so you will have a frame of reference. Also, if he tries to sell you insurance that pays off the loan if you die, etc., please know that this is a very expensive form of insurance. If you want this type of insurance (or a debt cancellation contract, etc.) it would be in your best interest compare pricing elsewhere. Maxing out you insurance with your employer, if applicable, is a great example of a better way to do it.

[e902cool]

Originally Posted by nanpenyo

Many banks have increased their rates recently. Anything around 6% should be good now. Some dealers may not accept loans from company like Capital One for it is not a "Bank". Make sure you ask the dealer for the policy before shopping your auto loan.

why would a dealer not take payment from a non-bank source??
check is check, draft is draft right? just wonder....

yeah i know shopping around too much will hurt your credit, but at least i got to try like 3 places.... I have had a CU for 5.5, tempted to try the CITI Auto loans, and then BMWF....

i will have more info next week as my car will get here supposedly

[tl_boy]

60 months, i put down $9,428 financed 25k, credit score near 800... what else?? oh yeah, i did go to bankrate.com and told them that Capital One was offering me 4.8 or so, they really were, but i'm glad BMW took care of it.

I'm not kidding when i say i got financed in 20 minutes. I bought my car in 20 minutes or maybe 15.

[gos]

my credit union is offering 4.5% with a minimum balance, 4.75% w/o one... that's my plan

[tl_boy]

my dealer honestly didn't care if i financed with them or not. i offered to, but they said, 'we shop around, and will get you the best rate, whether it is thru bmw or not' i thought that was pretty cool.

i would reccomend their finance department, definitely. it was a lady, i can get her name if anyone's interested. nice lady, stayed back after closing for me so i could make an emergency check withrdrawal, i had the bank wait for me too.. nice guys, this was all done after 6 p.m.