[Auricom]

Originally Posted by Infosec

16% off MSRP??

is this including all the rebates, incentives, APR credit etc??

Most likely including. Cause I can see owners recently signed or in the market table flipping for 16% pre-incentives - and the flood of PMs asking for his SA/dealer info.

[ChiefOne]

On the BMW Financial Services page, one of the Credit Application questions is Financing type: Lease / Traditional / Owners Choice.

I am wondering what is this Owners Choice? Would appreciate the insight.

[TurtleBoy]

Originally Posted by ChiefOne

On the BMW Financial Services page, one of the Credit Application questions is Financing type: Lease / Traditional / Owners Choice.

I am wondering what is this Owners Choice? Would appreciate the insight.

It is a special "leasing" program that is used in states such as Texas in order to get around how their sales tax is set up. It is similar to balloon financing.

[ChiefOne]

I found this after an intense search, seems owners choice is only applicable to leasing.

Lauderdale: Hi I'm Lauderdale.

Kyle: And I'm Kyle.

Lauderdale: And we're the finance managers with Momentum BMW. We're here to talk about leasing versus Owner's Choice. So when you lease, the car is titled under BMW.

Kyle: And on our Owner's Choice program, the car is actually titled to you. So it's a benefit, at the end of the term if you were to buy, as if the vehicle were titled to BMW, you would have to pay taxes on the remaining portion of that vehicle a second time. Even though you've already been taxed on the full amount of the vehicle initially. With Owner's Choice, since the vehicle is titled to you, you will not be paying taxes on the remaining portion. You will just be essentially re-financing under your name again.

Lauderdale: When you lease, Gap insurance is included. So in the event that the car gets into a total loss, whatever your auto insurance company does not cover, BMW waives the difference.

Kyle: On our Owner's Choice program, Gap is not included. This is because the car is not titled to the bank. In a situation where it's a lease, the car is titled to the bank. They have some liability there so they include Gap insurance as part of their leasing cost. With our Owner's Choice program, the car is titled to you. So it is your responsibility to make sure that that Gap is covered.

Lauderdale: When you're leasing as well, if you sign up for hypothetically 10,000 to 12,000 miles per year, in the event that your driving habit has changed the next year, you always have the option to call BMW and increase your mileage at a lesser cost versus at the end of the term.

Kyle: On the Owner Choice program, your ability to add more miles before the end of the term is more limited. It is a retail contract with a balloon. Which means that you're not able to alter that contract before the end of the term. You are, however, able to purchase or rather pay for the excess mileage at the end of the term. Just not purchase it before and roll it into your remaining lease payments.

Lauderdale: Also, in a lease, an acquisition fee is charged. That's standard in all leasing.

Kyle: The Owner Choice program has no acquisition fee. So there is no fee to set up the lease with the Owner's Choice program because it is technically a retail contract with a balloon at the end of the term. On both contracts, there is what's called a "disposition fee". That is the same across the board. That is the charge that BMW charges you if you get out of the vehicle at the end of the term and do not re-up with BMW financial after that.

[philooo]

ok so I am in a bind...

i had negotiated 11%off MSRP for my X5 45e...and I was thinking of going thru penfed discount intead of the BMW APR.

Now I am chaning my mind and wanted to "JUST" switch to the BMW 0.9% APR, but now dealer tell me they can't offer me 11% if I want 0.9% APR...

Is that true ? he tells me they get an incentive if I do NOT finance thru BMW.

that sounds weird, no ? they offer me 6% off if I want the BMW financing..

are they trying to bull#### me ? or does that sound right ?

[TurtleBoy]

Originally Posted by philooo

ok so I am in a bind...

i had negotiated 11%off MSRP for my X5 45e...and I was thinking of going thru penfed discount intead of the BMW APR.

Now I am chaning my mind and wanted to "JUST" switch to the BMW 0.9% APR, but now dealer tell me they can't offer me 11% if I want 0.9% APR...

Is that true ? he tells me they get an incentive if I do NOT finance thru BMW.

that sounds weird, no ? they offer me 6% off if I want the BMW financing..

are they trying to bull#### me ? or does that sound right ?

I have never heard that and it doesn't make sense to me. If anything, they would get an incentive if you financed with BMW although I haven't heard of that either. They are just trying to get extra money from you. Tell them to screw themselves and take the 11% with PenFed, that is a great deal anyways.

[philooo]

I guess it is a bit my fault for telling them I wanted to use the PenFed discount and not the BMW APR...

They just comfirme to me that I could NOT get the 11% discount if I wanted the .9% APR. I would instead get a 6% discount.

In the meantime i got approved by bank of america for 1.8%APR so I'll go with the BoA financing... let's see how this unfold tomorrow as I take delivery, but I feel the dealership is trying to pull the rug under me at the last minute... or may be I am just paranoid of the dealership experiences I had in the past in South Florida

[TurtleBoy]

Originally Posted by philooo

I guess it is a bit my fault for telling them I wanted to use the PenFed discount and not the BMW APR...

They just comfirme to me that I could NOT get the 11% discount if I wanted the .9% APR. I would instead get a 6% discount.

In the meantime i got approved by bank of america for 1.8%APR so I'll go with the BoA financing... let's see how this unfold tomorrow as I take delivery, but I feel the dealership is trying to pull the rug under me at the last minute... or may be I am just paranoid of the dealership experiences I had in the past in South Florida

My guess is that they are using you wanting to change financing as a way to renegotiate the deal. I assume you agreed to the price, financing, etc. prior to ordering so by you changing that (even though it won't harm them) they take it as you going back on the original deal and that they can try and make a new one.

[ChiefOne]

I submitted an application to BMW Financial. Received a call from BMW because my credit file is locked and alerts that are set, and they confirmed that all good for 1.9% and $2,500 and said they are transmitting the information to the dealer.

Received a call from the dealer minutes after, and they are trying to tell me that the initial 11% they gave me had the APR credit built into it. Which sounds weird because there was no mention of APR credit bundled into the discount.

[TurtleBoy]

In the past I have heard of dealers doing that, even advertising the price with the APR Credit included.

[leasehackr]

Originally Posted by ChiefOne

I submitted an application to BMW Financial. Received a call from BMW because my credit file is locked and alerts that are set, and they confirmed that all good for 1.9% and $2,500 and said they are transmitting the information to the dealer.

Received a call from the dealer minutes after, and they are trying to tell me that the initial 11% they gave me had the APR credit built into it. Which sounds weird because there was no mention of APR credit bundled into the discount.

Did you chose bmw center from the drop down https://creditapp.bmwusa.com/Apply

My credit file is also freeze but never got a call from BMWFS.

[ChiefOne]

Originally Posted by Infosec

Did you chose bmw center from the drop down https://creditapp.bmwusa.com/Apply

My credit file is also freeze but never got a call from BMWFS.

Yes, I used the same URL. My credit file is locked and I have a fraud alert set on my account. Anytime I apply for any such things, I get a call and personal care ...

[LowerEast]

Originally Posted by ChiefOne

I submitted an application to BMW Financial. Received a call from BMW because my credit file is locked and alerts that are set, and they confirmed that all good for 1.9% and $2,500 and said they are transmitting the information to the dealer.

Received a call from the dealer minutes after, and they are trying to tell me that the initial 11% they gave me had the APR credit built into it. Which sounds weird because there was no mention of APR credit bundled into the discount.

I think it depends on how you negotiated the deal.

If you were explicit that the was before any incentives, and that any additional incentives available at the time of purchase would increase the negotiated discount, then you should benefit from the APR discount.

If, on the other hand, you negotiated a discount on MSRP with the dealer, and you didn't explicitly cover how incentives would be treated, I would assume that the negotiated discount includes incentives, and I wouldn't expect the dealer to pass those discounts on to you.

[ChiefOne]

After some back and forth over the phone, and my clear indication that I will rethink the deal if I am forced to leave the incentive on the table, my overall discount increased from roughly 11% to about 14.7% and a tint. I think I am pretty much okay with the deal now.

When I initially negotiated, I was not aware of all the components of the deal, and therefore was happy that I got 11%. I joined this group after I had my order placed. And the knowledge and information started pooling in after it was all said and done. Considering the sequence of events, I think I am pretty happy with 14.7%.

[leasehackr]

Originally Posted by ChiefOne

After some back and forth over the phone, and my clear indication that I will rethink the deal if I am forced to leave the incentive on the table, my overall discount increased from roughly 11% to about 14.7% and a tint. I think I am pretty much okay with the deal now.

When I initially negotiated, I was not aware of all the components of the deal, and therefore was happy that I got 11%. I joined this group after I had my order placed. And the knowledge and information started pooling in after it was all said and done. Considering the sequence of events, I think I am pretty happy with 14.7%.

What rebates, incentives you included in 14.7%? can you give breakdown of all the incentives included?

[philooo]

So I took deliery of my car, and to confirm what I posted earlier, the dealer would not honor the 11% off msrp BEFORE rebates IF I DID finance with BMW at the low APR.

they told me that BMW would give them some incentive if I was NOT using BMW finance. because BMW was loosing money on the financing...

I was expecting them to change their tune when I showed up with a bank of america loan (at 1.89%), but no they didn't change...

that is strange considering BMW advertise their low apr everywhere.

I would LOVE to know what exactly happen with my dealer...

Because in the end they gave me 11% off-msrp and equivalent rebate with penfed ($3,250) , OL drive code ($1000) for a total of $4,250. Which is pretty similar to the bmw financing ($2,500), Loyalty ($1,000), Penfed ($500) for a total of $4,000.

MY ERROR was definitively to not have locked the APR when I ordered. And I was not super precise as to which incentive I wanted to use.

the dealers are really trying to keep all these things as blurry as possible... AND honestly I think most of them are not even aware of how they work or exist. I guess a large percentage of the buyer just show up and buy something without any research.



To recap my total discount was 25% off-msrp.
car: 82,250
msrpoff 11%: 9047
reabtes penfed+drive: 4250
45e hybrid tax credit: 7,500

Add to that the business deduction and that is one sweet deal compared to a MB GLE... which I would have prefered at the same price.

[leasehackr]

Originally Posted by philooo

To recap my total discount was 25% off-msrp.
car: 82,250
msrpoff 11%: 9047
reabtes penfed+drive: 4250
45e hybrid tax credit: 7,500

Add to that the business deduction and that is one sweet deal compared to a MB GLE... which I would have prefered at the same price.

This is a heck of a deal.