How much BMW FS /Dealer Markup ?

x5forme · 02-24-2024, 12:09 PM

My dealer is marking up 1% on the lowest rate available from BMW FS (5.29%). Is this rate negotiable?. Should I go with just personal funding if outside financing is lower than the dealer rate?

formerE36M3/4/5 · 02-24-2024, 12:28 PM

Why would you want to pay the dealership extra? If you can get your financing cheaper than the dealer is giving you then do it.

TurtleBoy · 02-24-2024, 01:27 PM

Dealers are allowed to mark up the rates 1% on APR and .00040 on MF. Many will not remove the markup but it is a negotiation point. Keep in mind that some incentives require you to finance/lease with BMWFS so that should go into your calculations if appropriate.

formerE36M3/4/5 · 02-24-2024, 04:34 PM

Quote:

Originally Posted by TurtleBoy

Dealers are allowed to mark up the rates 1% on APR and .00040 on MF. Many will not remove the markup but it is a negotiation point. Keep in mind that some incentives require you to finance/lease with BMWFS so that should go into your calculations if appropriate.

Yes, I failed to consider the impact on any potential incentives.

x5forme · 02-24-2024, 08:49 PM

I had negotiated a deal. It's a price match to another dealer at 10.5% for MY24.

As a point of negotiation to my SA, I highlighted that I will not accept the markup APR on the deal. Since the delivery time is only in April, I intend to see what the financing deals look like when it is near the delivery date.

I did not have any BMW Offers etc, I don't think my SA said you would not get this deal if you don't finance through BMWFS; I will see what happens near delivery. I will be ready to walk out if the dealer I cannot use my own financing

Ibiza · 02-25-2024, 12:23 PM

Appears that discount is high, but making up the difference on the back end by marking up financing.

Boardmember · 02-25-2024, 04:58 PM

Accept the dealership finance terms fit 90 days then approach a credit union for a new car rate on day 91.

LDT · 02-25-2024, 05:06 PM

Quote:

Originally Posted by Boardmember

Accept the dealership finance terms fit 90 days then approach a credit union for a new car rate on day 91.

Good idea but check with your lender (especially banks) as many consider the car to be new for only 60–90 days. Personally I’ve done a refi within a week.

TurtleBoy · 02-25-2024, 05:54 PM

Quote:

Originally Posted by Boardmember

Accept the dealership finance terms fit 90 days then approach a credit union for a new car rate on day 91.

Why wait 90 days?

Boardmember · 02-25-2024, 06:18 PM

Good point. I was assuming BMWFS would require that. If not, then don’t let the wet ink touch the seat on the way to your bank/CU.

TurtleBoy · 02-25-2024, 07:06 PM

Quote:

Originally Posted by Boardmember

Good point. I was assuming BMWFS would require that. If not, then don’t let the wet ink touch the seat on the way to your bank/CU.

No, you can pay it off at any time. Some dealers tough will tell you that you need to wait 3 to 6 months. Why they say that is if you pay out off prior to making three payments then that can be charged back for any incentives. If the dealer did well and didn't try to screw you then it probably is best to wait the three months. If they charged a markup then may it off the next day.

x5forme · 02-25-2024, 08:02 PM

Thanks for your inputs, I did not know Refinance within three months was possible; I will use this as a backup. The SA has been really good to work with; if CU/bank will do the refinance with new car rates, I think I will make this as fair to him as much as possible.

02-24-2024, 12:09 PM	#1
x5forme Enlisted Member 5 Rep 30 Posts Drives: Tesla Model S 100D Join Date: Feb 2024 Location: Bay Area, CA iTrader: (0)	How much BMW FS /Dealer Markup ? My dealer is marking up 1% on the lowest rate available from BMW FS (5.29%). Is this rate negotiable?. Should I go with just personal funding if outside financing is lower than the dealer rate?
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02-24-2024, 12:28 PM	#2
formerE36M3/4/5 Private 69 Rep 95 Posts Drives: 997.2 GTS Cab (the fun car) Join Date: Feb 2024 Location: Sunshine State iTrader: (0)	Why would you want to pay the dealership extra? If you can get your financing cheaper than the dealer is giving you then do it. __________________ 2024 X5 X40i Tanzanite Blue / Tartufo Merino Past Bimmers: 1600/2; E36 M3/4/5; 740; 328 Conv (wife's); 128 Conv (wife's) Past Beemers: K1200RS; R100 GSPD; K1200 LT; R1100 RT; R1150 GS Assorted Porsche's over the last 20+ years
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02-24-2024, 01:27 PM	#3
TurtleBoy General 13425 Rep 19,974 Posts Drives: 2019 X5 40i,2021 M340i Join Date: Jan 2019 Location: Colorado iTrader: (0)	Dealers are allowed to mark up the rates 1% on APR and .00040 on MF. Many will not remove the markup but it is a negotiation point. Keep in mind that some incentives require you to finance/lease with BMWFS so that should go into your calculations if appropriate. __________________ 2021 BMW G20 M340i xDrive - Verde Ermes/Black - 03/2024.40 2019 BMW G05 X5 xDrive40i - Phytonic Blue/Cognac - 11/2023.50
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02-24-2024, 08:49 PM	#5
x5forme Enlisted Member 5 Rep 30 Posts Drives: Tesla Model S 100D Join Date: Feb 2024 Location: Bay Area, CA iTrader: (0)	I had negotiated a deal. It's a price match to another dealer at 10.5% for MY24. As a point of negotiation to my SA, I highlighted that I will not accept the markup APR on the deal. Since the delivery time is only in April, I intend to see what the financing deals look like when it is near the delivery date. I did not have any BMW Offers etc, I don't think my SA said you would not get this deal if you don't finance through BMWFS; I will see what happens near delivery. I will be ready to walk out if the dealer I cannot use my own financing
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02-25-2024, 12:23 PM	#6
Ibiza Colonel 3613 Rep 2,858 Posts Drives: 22 G83 comp & 2024 X5 M60 Join Date: Mar 2011 Location: On the run.... iTrader: (0)	Appears that discount is high, but making up the difference on the back end by marking up financing. __________________ 2022 G83 PCD & 2024 G05 S68 PCD Retired:2021 F95 ZCP PCD,2018 F85 PCD,2018 F83 ZCP- ED/PCD, 2015 X5 50i PCD, 2015 435 vert ED, 2011 X3 PCD, 2011 335is vert ED/PCD, 2007 X3is PCD, 2007 335i vert PCD, 2004 328i vert PCD
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02-25-2024, 04:58 PM	#7
Boardmember Private First Class 132 Rep 172 Posts Drives: BMW X5 xDrive40i Join Date: Jul 2023 Location: Gulf Coast USA iTrader: (0) Garage List 2024 BMW X5 xDrive 40i [0.00]	Accept the dealership finance terms fit 90 days then approach a credit union for a new car rate on day 91.
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02-25-2024, 06:18 PM	#10
Boardmember Private First Class 132 Rep 172 Posts Drives: BMW X5 xDrive40i Join Date: Jul 2023 Location: Gulf Coast USA iTrader: (0) Garage List 2024 BMW X5 xDrive 40i [0.00]	Good point. I was assuming BMWFS would require that. If not, then don’t let the wet ink touch the seat on the way to your bank/CU.
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02-25-2024, 08:02 PM	#12
x5forme Enlisted Member 5 Rep 30 Posts Drives: Tesla Model S 100D Join Date: Feb 2024 Location: Bay Area, CA iTrader: (0)	Thanks for your inputs, I did not know Refinance within three months was possible; I will use this as a backup. The SA has been really good to work with; if CU/bank will do the refinance with new car rates, I think I will make this as fair to him as much as possible.
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