[MarkDemma]

Hey folks,

I was looking to do ED on a M240i for May / June time frame, but my salesperson was telling me about a $3500 cash incentive they are doing for the month of January, described here:

https://www.edmunds.com/bmw/2-series...ar-incentives/

the catch seems to be that you have to use BMW financing and the best rate they'll do right now is 3.7%

This seems like one of the best offers I've seen since I've been looking for a M240i. Would folks concur?

[B58togo]

It’s not that great if you have to finance through them at 3.7%. $45000 financed at 3.7% for 72 months is around $5200 in interest over the life of the loan. The same 45k financed through a credit union at 1.85% is only around $2500 in interest. So you’d save $800 going through BMW. Still not bad, but not nearly as good as the .9% they’ve offered in the past.

[MarkDemma]

Originally Posted by B58togo

It’s not that great if you have to finance through them at 3.7%. $45000 financed at 3.7% for 72 months is around $5200 in interest over the life of the loan. The same 45k financed through a credit union at 1.85% is only around $2500 in interest. So you’d save $800 going through BMW. Still not bad, but not nearly as good as the .9% they’ve offered in the past.

Yeah guess I hadn't run the maths on the loan. IF I could put a much larger down payment it might be a better deal. I wonder if you can purchase with BMW financial and then refinance ?

[ralawren]

Originally Posted by MarkDemma

Yeah guess I hadn't run the maths on the loan. IF I could put a much larger down payment it might be a better deal. I wonder if you can purchase with BMW financial and then refinance ?

Check to see if there is a length of term restriction. My credit union will refinance new car loans at very attractive rates. Sign up with BMW Finance and then pay it off after 3 months by refinancing.....

[stevenvillatoro]

Originally Posted by ralawren

Sign up with BMW Finance and then pay it off after 3 months by refinancing.....

This is what I've done in the past. The dealer typically gets compensated by the OEM when you hold your loan open for more than 90 days, so I ask to split their incentive for keeping the loan for at least a 90-day term. Usually the minimum loan balance is like $10K, so you can score a good deal if you work the system the right way.

[dcarp757]

I was told via email from a dealership internet sales person, that the BMWFS rebate does not require you to use BMW FS and their high APR. Below is that quoted email. Although for a 3 series I was interested in, the listing showed "BMWFS Finance Rebate $4,000" just as does the 2 series listing "BMWFS Finance Rebate $3500"

https://www.bmwoffairfax.com/new/BMW...d4d18238da.htm

https://www.bmwoffairfax.com/new/BMW...eb19d53615.htm

"Absolutely, the incentives currently going on at the moment for the 3 series is $4,000 if you WERE or WERE NOT to finance through BMW FS. If you do not finance through us tho you will NOT be eligible for the $750 loyalty credit. "

[dcarp757]

I exchanged an email with a sales person when I inquired about a 3 series. See below.

"Absolutely, the incentives currently going on at the moment for the 3 series is $4,000 if you WERE or WERE NOT to finance through BMW FS. If you do not finance through us tho you will NOT be eligible for the $750 loyalty credit. "

[MarkDemma]

One wrinkle here I'm discovering is that since I'm special ordering that the same rebate may not be in place when the car arrives. One dealer is saying that after reading the fine print, I have to place the order as if going through BMWFS to "lock in" the rebate from the time ordered. I don't have access to this fine print so can't confirm myself.

[X3andOut]

Originally Posted by MarkDemma

Hey folks,

I was looking to do ED on a M240i for May / June time frame, but my salesperson was telling me about a $3500 cash incentive they are doing for the month of January, described here:

https://www.edmunds.com/bmw/2-series...ar-incentives/

the catch seems to be that you have to use BMW financing and the best rate they'll do right now is 3.7%

This seems like one of the best offers I've seen since I've been looking for a M240i. Would folks concur?

Hopping in late to this thread, but the incentives are not available on Euro Delivery Cars. I wasn't sure if you were saying that you'd take a car in stock to do the January program?

[MarkDemma]

So I have my car now and am due to make my first payment the beginning of August. I can't find anywhere in the terms that I can't pay off the balance and lose the incentives. Maybe I should read ALL the fine print. I wonder if I should contact the dealer, I got such a good deal on the car that they said they were really only making any money through the financing. I feel like I should at least find out if they lose their incentive / kickback from BMWFS if I refinance within a certain amount of time.

[dradernh]

Originally Posted by MarkDemma

So I have my car now and am due to make my first payment the beginning of August. I can't find anywhere in the terms that I can't pay off the balance and lose the incentives. Maybe I should read ALL the fine print. I wonder if I should contact the dealer, I got such a good deal on the car that they said they were really only making any money through the financing. I feel like I should at least find out if they lose their incentive / kickback from BMWFS if I refinance within a certain amount of time.

FWIW, when I was working with a dealer on a factory order for a 2018 model that included the financing incentive, I was told that I needed to make the first six payments before I could pay it off. I didn't ask what would happen if I did pay it off earlier than that.

[MarkDemma]

Originally Posted by dradernh

FWIW, when I was working with a dealer on a factory order for a 2018 model that included the financing incentive, I was told that I needed to make the first six payments before I could pay it off. I didn't ask what would happen if I did pay it off earlier than that.

Yeah I have to wonder if what they really meant was if you didn't at least make your first 6 payments they didn't get their commission on it. I mean, I could just ask.

[CAMOETO]

Originally Posted by MarkDemma

Yeah I have to wonder if what they really meant was if you didn't at least make your first 6 payments they didn't get their commission on it. I mean, I could just ask.

That's most likely what it is. Unless there is an early payoff penalty spelled out in your financing contract, there is nothing that can be done to enforce this. I got in on a similar type of incentive with a different German brand where I was politely asked by the salesman to not do an early payoff until 3 months has passed, otherwise he would loose part of the commission.