[gabalemon]

I just ordered my BMW M340i (yay!), and when I was at the dealer, they had 3.49% on the paper. I explained that BMW's website says 2.49 and I'm a well qualified buyer. How could I not get 2.49? They stated that they only offer that if you buy the car DIRECTLY through BMW, and not at the dealer. Is there any truth to that? I would really like 2.49%. If I don't get it, I may go through my credit union.

[DanG]

Your dealer is giving you a lot of BS. They are trying to make more money on the deal by marking up the finance by an extra 1%.

I would try a different dealer or tell them you will walk if the don’t honor the real BMWFS rate of 2.49%.

[chayden2005]

Check out your local credit unions as well. My local one is offering a 1.74% loan (up to 72 months) for buying a new/used EV/PHEV. If you don't use auto pay with them then the rate goes to 1.99%. Needless to say, I am a member but not sure if the terms will change since I don't expect my X5 45e until sometime in April and the loan only has a 60 day rate lock.

[Westside Guy]

Some dealers try to add 1% which goes into their pocket and not to BMWFS and it is BS!

Definitely go to another dealer if they don't lower the rate.

[Tuxedo]

Simple answer is BMW FS approves you for the standard rate of 3.49% the dealer buys down the rate to 2.49% like a dealer paid rebate. For the dealer when stacks of cars in inventory this cost is minor compared to paying for floorplan interest, dealer makes up costs in volume. Low allocations trickle down effect- No inventory, no volume, no BMW to dealer compensation, no buy down rate.

[Westside Guy]

From the BMW USA site:

The wording gives the dealer an excuse as it says "All offers are subject to availability from existing dealer inventory."

[SquidG80]

When I initially approached the dealer to buy the car he 'ran the numbers' at the current BMW finance offer APR +1% (I think it was 1.99% so he ran them at 2.99%)

When I questioned it he said that they do this until a hard pull credit check is completed and then will adjust the numbers as necessary - if you have good credit the APR comes down.

As the credit checks are only good for 60 days and my car is waaaayyyyyyy off in the distance I didn't want to ding my credit now and then have them do it again closer to the time and show i've had a previous ding (by the dealer...), which drops my score and so raises the APR!

I'm only doing a partial finance so 1% has minor implications for me, but if I was financing the whole car it would concern me.

[SteveinArizona]

I agree with the other posters but would add that the claim that it only applies to cars purchased directly from BMW is not only BS but legal BS. State franchising laws require the use of the dealers.

[Westside Guy]

When I financed my 2022 Z4 BMW advertised .9% for up to 60 months but when I sat down with the finance manager she tried to charge me 1.9%. I refused and threatened to walk and they lowered the rate back to what was advertised. It is a poker game so play your hand. 😉

[zx10guy]

Something else to consider and this is only from the Motorrad side. I assume it's the same BMW Financial that also finances the auto group. I recently purchased a 2022 S1000RR. When we discussed rates, I told them I got a cheaper rate with my credit union. They requested a pre-approval to show the rate I qualified for in writing. I presented it to them and BMW Financial matched the rate.

I decided to go with BMW Financial as it was easier paper work process wise and I leveraged my willingness to go with BMW Financial as a way to get a minor thing added to my deal to sweeten the pot a little. Wouldn't have received that concession if I went with my credit union.

[NickyC]

Originally Posted by Westside Guy

When I financed my 2022 Z4 BMW advertised .9% for up to 60 months but when I sat down with the finance manager she tried to charge me 1.9%. I refused and threatened to walk and they lowered the rate back to what was advertised. It is a poker game so play your hand. 😉

100%, every dealer will try to stick you with the 1.9%. When I was looking for the G82, all tried to pull that BS on me. Once you show them the website info, 0.9% is given no questions asked. Don't fall for it.

[Westside Guy]

Originally Posted by NickyC

100%, every dealer will try to stick you with the 1.9%. When I was looking for the G82, all tried to pull that BS on me. Once you show them the website info, 0.9% is given no questions asked. Don't fall for it.

Someone I know just paid a point over the nationally advertised 2.49% rate for a new M240i. I told him he should go back and argue with the dealer.

[Namelss]

I ordered my car last July. It arrived at the US port in December when financing for the M5 was .9%. It sat at the port on a stop sale for 6 weeks and by the time it made it to the dealer in January, the rate had increased to 1.9%. I asked my CA if I could finance at .9 since my car arrived at the US port when the rate was .9.

BMWFS made an exception and I got the .9 after all. Not all dealers are shady!

[KevinC]

Here's the deal on these promo rates...

Dealers are allowed to mark it up by up to 1 point. And many/most of them do, or at least try to. I get it on "standard" rates, but for a promo rate that's advertised? The fine print may give them cover to do this from a legal standpoint, but it's still dirty pool IMHO to advertise one rate, then stick the customer with a higher rate - especially when they aren't transparent about what's going on, and just lie - as was the case here with the OP.

When I ordered my M2 Comp last February, there was 0.9% financing available. When I ordered the car and placed a deposit, I was told that the rate would lock for 90 days if approved that day (I've heard it's 120 days in the west to allow for longer transit time from Germany, which would have applied to me) - this way you're covered with the original rate if it goes up while waiting for your order. I got approved and was set. No talk about any additional markup over that 0.9% rate.

3 months later the car is in, and the F&I criminal doesn't say a peep but writes up the contract at 1.9%. When I called him on it, he first claimed that the 0.9% promotion "had expired" and that 1.9% was the new "best rate". Lies. 1) the rate was indeed still being offered as of that date, and 2) his 1.9% number was just in keeping with company policy, allowing him to charge up to a point over the BMWFS rate - which of course goes into the stealership's coffers to help pay the owner's next yacht payment. So I press the guy about the fact that I'd been preapproved and locked at the promo rate when I ordered the car. He fumbles with his keyboard and comes back with "oh yeah, we can honor it".

What can you do about these shenanigans? First off, if you're LIED to, call them out on it. That's not cool. 2nd of all, even if they haven't actually lied, but are somehow trying to jam you for that extra point, get them to admit that it is indeed "dealer markup" and tell them you aren't going to pay it. Or find another dealership within range that will honor it and take your business there. Also, if the rate is just "ok" in the first place, like the one mentioned here, check your credit union and also other notable lending institutions like Pentagon Federal CU (penfed.org) for their current rates. They are an excellent company to deal with, always have super-competitive rates, and everything is done online.

[Westside Guy]

There is an old advertising slogan from the 1980's, "an educated consumer is our best customer" which means in plain English do not to let the finance manager at a dealer BS you and charge more than you should be paying! If you do your homework and are prepared you should ask for and pay the correct interest rate.

As mentioned by others, be prepared to walk if they won't match a nationally advertised rate, you have a good credit rating and qualify for it!

[BMWGirlFL]

Originally Posted by Westside Guy

There is an old advertising slogan from the 1980's, "an educated consumer is our best customer"

Sy Syms

Originally Posted by Westside Guy

I am laughing so hard that my eyes are tearing up! 🤣

[Westside Guy]

Originally Posted by BMWGirlFL

Sy Syms

The commercial worked because I used to shop at Syms! 😀

[BMWGirlFL]

Originally Posted by Westside Guy

The commercial worked because I used to shop at Syms! 😀

Early driving was to Paramus. Still have a suit. Probably more if I think about it.

[Kayrohit]

Ya, it seems like they make the extra money on top. For my last two cars I negotiated the interest.

[Westside Guy]

IMHO, they always save the finance manager for the last step because the average buyer is anxious to get behind the wheel of their new vehicle and drive away and they hope that you won't pay attention to the interest rate.

[shawnhayes]

Originally Posted by Westside Guy

IMHO, they always save the finance manager for the last step because the average buyer is anxious to get behind the wheel of their new vehicle and drive away and they hope that you won't pay attention to the interest rate.

Always..

And not always best educated on the BMW stuff either.

Last guy tried to tell me that the BMW extended warranty covered the Carbon Ceramic brakes, pads and rotors. I said "I don't think so". Service manager confirmed that M cars carbon ceramics are not covered by any warranty period. Educate yourself carefully.

Shawn

[Westside Guy]

Originally Posted by shawnhayes

Always..

And not always best educated on the BMW stuff either.

Last guy tried to tell me that the BMW extended warranty covered the Carbon Ceramic brakes, pads and rotors. I said "I don't think so". Service manager confirmed that M cars carbon ceramics are not covered by any warranty period. Educate yourself carefully.

Shawn

They have a script they follow and always try to sell you a number of additional plans