BMW Financial question

[Anonymous]

My local BMW dealer is offering a 1.9% rate on a new car loan. It would be for a 2022 X-2 for 48 months. My fico scores are between 767 and 786. I thought most new cars had 0%. 

My question is;

Is this a good rate? I have to pick up the car by sunday, I did leave a deposit and I do want the car but do I use the 1.9% from the dealer or look elsewhere? I know I can not look elsewhere for 0% but I dont know what I should be paying as far as an interest rate.

I told the dealer that if I can not obtain decent outside financing that I will take their 1.9% loan. Can someone please let me know what to do?

Many Thanks

Mark

[Brian_Earl_Spilner]

1.9 is pretty standard for luxury manufacturers

[Shooting-For-800]

In my area, BMW is offering 0.9% for 60 months on just about everything including X2...

You are paying $1571 in interest on $40k at 1.9% with regular required payments

If you are not happy with 1.9%, I would tell them.

If they can't come down on interest, they can come down on price.

Knock $1k off the price and you have the equivent rate of 0.7% 

"Through June 30, 2021, 0.90% APR financing for up to 60 months on any new 2021 BMW X2 sDrive28i model available from participating BMW dealers to very well qualified customers who meet BMW Financial Services NA, LLC credit requirements. For example, with $0.00 down payment, a retail installment contract on a 2021 BMW X2 sDrive28i with MSRP of $36,600.00 may be repaid in 24 monthly installment of $1,539.34 or may be repaid in 60 monthly installments of $624.06. MSRP excludes tax, title and license. Not all customers will qualify for down payment waiver or lowest rate. Other rates and payment terms available. All offers are subject to availability from existing dealer inventory. $2,000 APR Credit is a credit against the MSRP of the vehicle purchased. APR Credit and Loyalty/Conquest Certificate available for eligible BMW Financial Services customer only. All credits valid through June 30, 2021. Credits may be combined with other offers unless otherwise stated. Qualified rate lock applicants must take delivery within 60 days of initial lock. Visit your authorized BMW Center for important details."

Have you considered a lease?  Might be cheaper overall even if you keep the car.

GL!

[Anonymous]

thank you for your response, I just called the dealler and I was told that the 0.9% is for the 2021 X-2 but since mine is a 2022 the offer is for the 1.9% it is higher for the 2022.

Do you think he is telling the truth LOL a car dealer the tells the truth? lol. I am trading in a 2020 Lexus which has a 3.9% loan that the dealer placed through SunTrust when I bought the car. I really want to get rid of that 3.9% loan and from what it looks like the amount of trade is only $2,000 less then I paid for the Lexus new.

I usually make 4 car payments a month , one per week so in a year the 4 year loan is always paid off. I trade for a new car every two model years. The Lexus is worth more this time of year for trade as it is unusual for 2022's to be out this early, it is the only reason I am trading it right now. Leasing wont work for me as I trade too often.

Thanks

Mark

[Anonymous]

In addition, when I bought the Lexus I told the dealer that I wanted a four year loan, somehow I did not notice that they made it a six year loan, I assume that is why the rate of 3.9% is so high. I have been making three payments a month on the Lexus and the pay off is only about $7,000.

Thanks

Mark

[Anonymous]

Do you drive a lot of miles? If you drive 15K miles or less per year then a 2 year lease might actually be better for you, especially with BMW as they depreciate the most during that time and BMW typically inflates their RV.

But to answer your question the following is from BMW's website:

Through June 30, 2021, 0.90% APR financing for up to 60 months on any new 2022 BMW X2 xDrive28i model available from participating BMW dealers to very well qualified customers who meet BMW Financial Services NA, LLC credit requirements.

So 2022 BMW X2s should qualify for 0.9% for 24, 36, 48, and 60 month loan terms. You can go to BMW's official website and put in your zip code just to make sure the offer is the same for your area.

[Anonymous]

Oh great. Another dealer trying to rip me off. Let me see if I can beat them down to whre it should be at 0.9%. They offered me 1.9% and that is after running my credit. I know my auto score came back at 767 thats what they showed me on paper. I assume that would be high enough to get the lowest rate. I have never had a late payment in my life, however I do have 61 credit cards with a total utilization of 2% and a lot of inquries but my auto score is still 767. I drive about 9,000 miles a year. 

Let me see if I can get the rate 0.9%.

Thank you all for your help. It will save me a lot of interest in the end.

Mark

[Shooting-For-800]

If you make weekly payments, your interest will be peanuts.

Just make them drop the price a $500-$1000 and call it a day.

[Anonymous]

Well, I called the dealer and told him I am not going to pay more then the 0.9% as insturcted on here. He lied and said that was for a 36 month loan, not a 48 month loan. I said fine so give me the 36 month loan, I will be making 3 payments a month on it based on the 36 so it is paid off in a year. I am picking up the new car today.

Thank you all for your help, you saved me alot of interest on this loan

Mark

[Loquat]

Congrats on the new set of wheels. Feel free to come back and share a pic if you'd like.