[MarkDemma]

Hey folks,

Seeing if anyone had some advice abotu refinancing a loan.

I JUST got my M240i and used BMWFS to get the related incentives. My credit union has me pre approved for a loan with a better rate, but I was concerned that if I refinanced that it would impact my credit score. Anyone have any experience with this?

I'm also still trying to figure out if I NEED to make a certain amount of payments to not have to pay back the incentives. I've heard 3 months, 6 months. But from what it appears to me, there is nothing stopping me from doing it, but the dealer won't get THEIR cut if I do it too soon.

[silvercas]

call your dealer and ask. i though you need to keep bmwfs a few months

[B58togo]

Usually, any inquiries for auto or home financing grouped within a 30 day window only count as a single inquiry, so it may not impact your scores at all. The FICO model has been tweaked to reflect that, since no one should be penalized for shopping for the best deal. It's what smart consumers do, and smart consumers usually have higher credit scores.

[jsmith97321]

Hello,

I have a similar question as the OP. I purchased a 2019 X3 and financed through BMWFS (USA) to get the APR incentive ($2,000).

I would like to pay off the loan on the first payment, but the dealer said I had to make 6 payments before paying it off to be eligable for the incentive, but nothing is in writing.

BMWFS, and my contract say the loan can be paid off anytime without penalty.

It sounds like BS to me, what is the dealer gonna do, send me a bill for the incentive...????

Has oneone had any experience with this???

Thanks in advance!!

[Funwithdesign]

Usually these financing deals are open loans where the interest is baked into the whole and it's just spread out over the term.

i.e. there is no savings to paying it off sooner so it shouldn't matter how quickly you pay the balance off.

However, rather than ask a bunch of internet armchair financial advisors like myself, the best way is to just call them. No one is going to yell at you.

[SteveinArizona]

Originally Posted by jsmith97321

Hello,

I have a similar question as the OP. I purchased a 2019 X3 and financed through BMWFS (USA) to get the APR incentive ($2,000).

I would like to pay off the loan on the first payment, but the dealer said I had to make 6 payments before paying it off to be eligable for the incentive, but nothing is in writing.

BMWFS, and my contract say the loan can be paid off anytime without penalty.

It sounds like BS to me, what is the dealer gonna do, send me a bill for the incentive...????

Has oneone had any experience with this???

Thanks in advance!!

My understanding is that if the loan is paid off prior to 3 or 4 months (I have heard both numbers) that BMWFS goes back against the dealership for the incentive amount. I waited and made four payments before paying off my loan (I had a $4K finance incentive on my purchase). I checked with my CA first and he said that was fine.

[Funwithdesign]

Originally Posted by SteveinArizona

My understanding is that if the loan is paid off prior to 3 or 4 months (I have heard both numbers) that BMWFS goes back against the dealership for the incentive amount. I waited and made four payments before paying off my loan (I had a $4K finance incentive on my purchase). I checked with my CA first and he said that was fine.

I wonder why that is? They've already gotten their pound of flesh (ie. you don't save any interest by paying early).

[CAMOETO]

Originally Posted by Funwithdesign

Usually these financing deals are open loans where the interest is baked into the whole and it's just spread out over the term.

i.e. there is no savings to paying it off sooner so it shouldn't matter how quickly you pay the balance off.

However, rather than ask a bunch of internet armchair financial advisors like myself, the best way is to just call them. No one is going to yell at you.

I'm not sure about Canada, but this is not how these loans work in the US. You definitely don't pay remaining interest for the entire term on a loan when you do an early payoff. I've done it multiple times with BMW as well as other brands. All you pay on an early payoff is the remaining principal loan balance + prorated interest for the last partial month + any potential early payoff fee in the loan contract.

To the OP - if you don't want to screw the dealer, make the first 3 payments and do the payoff. If you don't like the dealer and don't plan on going there again, pay it off right away.