[huma]

I just noticed this, when did dealerships charge customers to finance a vehicle? I was under the impression it was the interest charge over the life of the contract.

I added the numbers and it looks right despite the finance charge, but I'm still very confused.

[overcoil]

Been long time since I financed a car
But by law don't they give you a listing of all charges and what they are for.
So beyond, amount of loan, % rate of loan, interest over life of loan, total - is there an explanation for this 'finance charger'- obviously not so did you call an ask.

[Cyberdemon]

I have not financed with BMW so I don't know the specifics, but I recently purchased a car for my mother in law from Subaru and they tried to pull some similar scumbag move where if she paid cash the car would cost more, so they wanted her to finance and then make a one time payment - must have been some incentive to get referrals for their internal financing.

Was it listed out on the paperwork when you were going through it with the finance manager? You need to be very careful - I had a similar "$1000" mistake made in the paperwork on my first BMW. I had to call the dealer out on it and they begrudgingly corrected it.

Ultimately, all dealers are assholes in search of maximizing their commissions so you need to be very observant. I had them sneak in $250 for wheel locks and I did not catch it in time.

[huma]

I spoke with BMW finance thirty minutes ago and they told me it's the charge they charge you to finance through them. I thought the interest they received from the loan covers their cost + profit, but I guess not.

Yea, my FA did pull a fast one on me. I should have read the documents more carefully and as far as I'm aware, this is probably something BMW does.

He told me he'll give me $500 off if I financed through them, what he neglected to tell me is that they're charging me $970 to finance with them. Next time I'm sticking with USAA or a reputable bank vs dealerships to finance.

I was initially shocked because I never had to pay a finance charge when I purchased a new vehicle before.

I think I understand it all now. Instead of charging you an APR and rolling in the finance charge, BMW gives you the interest rate separate from the finance charge. Does that sort of make sense? lol.

[overcoil]

Well rest assured that you probably also signed an arbitration only clause so you won't be part of any class action law suit.

[Cyberdemon]

Is the finance charge something that you prepaid, or is it simply the amount of interest on your loan documented up front?

[huma]

Originally Posted by Cyberdemon

Is the finance charge something that you prepaid, or is it simply the amount of interest on your loan documented up front?

Prepaid. The interest amount is separate from it. Did any of you fellows have to pay a finance charge on a purchase? I think finance charges is common on leases?

[overcoil]

Huma, I would send the stated charge with explanation to your States Attorney General, I don't know if it's an acknowledged common charge or an underhanded way to gouge the customer. But since 2008 they really frown on excessive charges.

[huma]

It's my mistake. I got confused when I looked at Bmw's amortization schedule. I initially paid $900 on my first payment and it showed my remaining balance on the first line. I thought the first line on the schedule is the amount I actually financed. Please kill this thread, with fire.

[angelbones]

ALWAYS, ALWAYS, ALWAYS, negotiate the best price of the vehicle. Only after you have settled on the price, should you start talking about how much your financing will cost you. Demand a break down. I don't know how far along or if it's too late, but at least it's a lesson learned.