[Supernaut]

I haven't seen anyone mention it yet, but BMW Financial Services is offering 0.9% financing starting in the last week. I'm getting mine finalized.

* As low as 0.90% APR financing for contracts up to 36 months on any new 2015 BMW M235i Coupe model. Rates available from participating dealers to eligible, qualified customers with excellent credit history who meet BMW Financial Services credit requirements. For example, with $0.00 down payment, a retail installment contract on a 2015 BMW M235i Coupe with MSRP of $43,100.00 may be repaid in 24 monthly installments of $1,812.72 or may be repaid in 36 monthly installments of $1,213.91. MSRP excludes tax, title and license. Not all customers will qualify for down payment waiver or lowest rate. Other rates and payment terms available. Subject to availability. Speak to a Client Advisor for details. All credits offset MSRP. APR and credits valid through March 31, 2015.

[1ChrisRuck]

Agreed BMW Financial is currently offering a great finance rate. YES I am also taking advantage of this

[blanquito]

Anyone have an idea what the incentives will be starting next month?

I just contacted my CA to ensure I have locked in this rate, but I am interested to see what will be offered next period.

[ska///235i]

Is it true this is for 36 term and if over 36 (36-60) then its @ 1.9%

[Gatte]

Originally Posted by ska///235i

Is it true this is for 36 term and if over 36 (36-60) then its @ 1.9%

This is true. Checked with my CA but he was not able to get me on this since mine was a ED and I had already signed my contract at 3.12.

[blanquito]

Originally Posted by ska///235i

Is it true this is for 36 term and if over 36 (36-60) then its @ 1.9%

Yup, over 60 it jumps to 2.9%

[ska///235i]

I wasnt going to finance but since rates are so low...going to invest that money instead

Say $50k for a 60 term is around $2500 interest, thats only $500 a yr. Invest the $50k and hope for a good return. Say 5% return thats $12,500 in 5 yrs (of course theres risk)

[Zooks527]

Originally Posted by ska///235i

I wasnt going to finance but since rates are so low...going to invest that money instead

Say $50k for a 60 term is around $2500 interest, thats only $500 a yr. Invest the $50k and hope for a good return. Say 5% return thats $12,500 in 5 yrs (of course theres risk)

You can't look at it that way. You're forgetting to take out the $50,000 in principal you're paying on the loan.

Option 1: Take out a $50,000 dollar loan at 1.9% for 5 years. The payment will be $874. Over the course of the loan, you'll pay $52,452 to the finance company. At the same time, take the $50,000 you could have used to buy the car and invest it at 5% for 5 years. At the end, you'll have $63,814. Your gain on the deal is $11,362 (the value in your investment account less what you paid out to BMWFS).

Option 2: Pay $50,000 cash for the car. Take the $874 you would have used for the car payment and invest it monthly at 5%. After 5 years, you'll have $59,437. Your gain is $9,437.

Option 3: Take out the $50,000 dollar loan at 1.9% for 5 years with the $874 payment, totaling $52,452 to the finance company. Invest the $50,000 at 5%, but take the car payment out of that account every month. At the end of the process, the account will have $5,582 in it, all of it gain. Take this option off the table, because it doesn't beat either of the above.

Sure, this is rough math, but the effective difference between the best two is only $1,975. Knock off a third for taxes and the "in your pocket" difference is only around $1,300, not the $10,000 you imply above.

Hardly seems worth the risk, especially since it's a trick to find anything returning a steady 5% that could even marginally be considered "safe".

[ska///235i]

Trust me I have looked into this as you discribe it

Of course there are risk, but I rather take the risk and hold equity.

[Zooks527]

Originally Posted by ska///235i

Trust me I have looked into this as you discribe it

Of course there are risk, but I rather take the risk and hold equity.

Uh huh. Just remember: Bulls make money. Bears make money. Pigs get slaughtered.

[qfsk]

What do you need to do to get the rate locked? Does rate lock work fro ED?

[ska///235i]

Ask when the offer ends, lock the rate at the last week cuz then you have 60 days

[2yo]

When I placed the order for my car back in February, the interest rate was at the old 3.11% I walked into the dealer last week to pick it up, and on my finance contract it was changed to the new 0.9%. Needless to say I didn't argue it when the dealer told me that he had a surprise.