Purchasing today. Need advice

mscot · 11-17-2023, 09:23 AM

My X5 came in Wednesday and I pick it up this afternoon.
Price on trade in and on the X5 have already been negotiated.

What is the purchase experience going to be like?

Are they going to try and upsell me on a bunch of stuff I dont need?

Is there anything I should actually consider?

Does anyone know what the current APR is? I was quoted 6.3 for October when I ordered. I'm hoping it's lower now. I have excellent credit.

T3PO · 11-17-2023, 11:32 AM

Some dealers have promo financing for the month of Nov, 5.29% for 60 months or 5.79% over 72 months with above a 740 credit score (sure debt to income also plays a factor).

As for the dealer haggling it is almost inevitable they will try to add in stupid shit like clear coat protection, window etching, etc just make sure you say you don’t want any of that and to remove it if they have “already done it”, most likely they haven’t. With the upsell on financial products they will try to get you on warranty and other service plans that is probably a buyer dependent answer. That being said try to get any of those things reduced by 40-50% if you do elect to purchase because these are major profit vehicles for the dealer and you will be grossly overpaying if you do not haggle.

M2C4ME · 11-17-2023, 11:56 AM

They are adding a point to rate but took 6.5% off msrp on car. Planning on putting down 25k and paying off in a year so rate point won’t be that significant.

mscot · 11-17-2023, 12:23 PM

Quote:

Originally Posted by T3PO

Some dealers have promo financing for the month of Nov, 5.29% for 60 months

Is there a way to find this out ahead of time?

T3PO · 11-17-2023, 12:43 PM

Quote:

Originally Posted by M2C4ME

They are adding a point to rate but took 6.5% off msrp on car. Planning on putting down 25k and paying off in a year so rate point won’t be that significant.

This is BS and quite frankly highly unethical and probably illegal to do. If you qualified for a lower rate that they have access to you should most def be getting that.

T3PO · 11-17-2023, 12:44 PM

Quote:

Originally Posted by mscot

Is there a way to find this out ahead of time?

Call them up and ask if they have access to the Nov BMW financial services rate. I don’t know how it works, but some dealers get the promo rate and others do not.

LDT · 11-17-2023, 01:27 PM

Just say no.

eelnoraa · 11-17-2023, 02:07 PM

Maybe also call credit union to see if they have better rate. Get pre-approved with at least one other leader. If bmw financial don't return favorable rate, you have a backup option, or at least a bae for negotiation

mscot · 11-17-2023, 03:23 PM

This is a new one. They are only allowing us to put 45k down including the trade in.
Kinda pissed.

travwill · 11-17-2023, 03:57 PM

[QUOTE=mscot;30663050]This is a new one. They are only allowing us to put 45k down including the trade in.
Kinda pissed.

Had dealers do that before. It's so they get the financing payout it seems. They said not to pay if off too fast but they really can't stop you if no prepayment penalty (which never is).

I'd say do whatever gets us the best price and benefits/incentives, then payoff to avoid any interest.

chicagofan00 · 11-17-2023, 04:05 PM

Quote:

Originally Posted by T3PO

This is BS and quite frankly highly unethical and probably illegal to do. If you qualified for a lower rate that they have access to you should most def be getting that.

BMW allows the dealerships to markup the rates by 1% if they so choose. Not illegal in the least bit. Definitely sucks that some dealerships choose to do it though.

T3PO · 11-17-2023, 04:35 PM

Quote:

Originally Posted by chicagofan00

BMW allows the dealerships to markup the rates by 1% if they so choose. Not illegal in the least bit. Definitely sucks that some dealerships choose to do it though.

Is this on BMW financial services loans or any lender? My understanding was outside lenders would allow for a small markup (not sure of the %) to entice dealers to use them, I have never heard of dealers marking up a full point though. Good to know.

PappyVanBmr · 11-17-2023, 05:52 PM

Quote:

Originally Posted by mscot

This is a new one. They are only allowing us to put 45k down including the trade in.
Kinda pissed.

They only let me put down 35k and same story need to wait a bit before I can pay it down

TurtleBoy · 11-17-2023, 06:24 PM

Quote:

Originally Posted by T3PO

Is this on BMW financial services loans or any lender? My understanding was outside lenders would allow for a small markup (not sure of the %) to entice dealers to use them, I have never heard of dealers marking up a full point though. Good to know.

It is for BMWFS, recently most dealers mark up the rate 1% and very few will remove that markup.

TurtleBoy · 11-17-2023, 06:26 PM

Quote:

Originally Posted by PappyVanBmr

They only let me put down 35k and same story need to wait a bit before I can pay it down

No need at all to wait. Just pay it off whenever you want to. If you make less than three monthly payments then the dealer can get chargeback for any incentives and any money they made from the financing deal.

vimalbmw · 11-17-2023, 07:36 PM

Same thing for me as well. Got 7% of MSRP but added 1% to interest rate, which is now 6.29%

M2C4ME · 11-17-2023, 09:02 PM

Quote:

Originally Posted by T3PO

This is BS and quite frankly highly unethical and probably illegal to do. If you qualified for a lower rate that they have access to you should most def be getting that.

I’m told all dealers mark up the rate. I asked a few and they told me it’s 6.29 when I saw internal document on salesman screen at 5.29.

T3PO · 11-17-2023, 09:30 PM

Quote:

Originally Posted by M2C4ME

I’m told all dealers mark up the rate. I asked a few and they told me it’s 6.29 when I saw internal document on salesman screen at 5.29.

Not true I just got the 5.29%

PappyVanBmr · 11-18-2023, 05:39 AM

Quote:

Originally Posted by M2C4ME

I’m told all dealers mark up the rate. I asked a few and they told me it’s 6.29 when I saw internal document on salesman screen at 5.29.

I got 5.29 as well

CanIDeductIt · 11-18-2023, 06:37 AM

Add me to the list of people being forced into the 1% interest markup. was planning on putting around $45k down including trade but have not gotten to the point where they are aware of that (X5 has been stuck in Quality Control status for 5 days now). I'm guessing they'll put the same limit on the down payment so that they can make more on the markup. If I do run into that, and I'm sure I will, I'll just make up the difference on the first payment.

I don't think BMW financial charges a prepayment penalty, so technically you should be able to pay down the entire loan once the account is setup. The dealer gets some kick back if you hold onto the loan for a few months, and will try to coerce you into doing so, but there's nothing they can do if you want to pay the car off or find a lower rate somewhere and refinance right away. I would almost feel bad doing this to the dealer, especially if they're giving a decent discount of MSRP, but most dealers aren't transparent at all about any of this so I never feel I owe them anything.

PappyVanBmr · 11-18-2023, 07:43 AM

Dealer gave me a healthy discount and no markup on the rate. I’ll honor for the short period of time they’ve asked me to assuming everything still goes well before delivery. I wouldn’t accept the mark up.

eluded · 11-19-2023, 03:20 AM

aim for 10% off and pay cash.

11-17-2023, 09:23 AM	#1
mscot First Lieutenant 189 Rep 303 Posts Drives: 2024 X5 50e Join Date: Jul 2023 Location: Colorado iTrader: (0)	Purchasing today. Need advice My X5 came in Wednesday and I pick it up this afternoon. Price on trade in and on the X5 have already been negotiated. What is the purchase experience going to be like? Are they going to try and upsell me on a bunch of stuff I dont need? Is there anything I should actually consider? Does anyone know what the current APR is? I was quoted 6.3 for October when I ordered. I'm hoping it's lower now. I have excellent credit. Last edited by mscot; 11-17-2023 at 11:08 AM..
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11-17-2023, 11:32 AM	#2
T3PO Private First Class 98 Rep 148 Posts Drives: X5 Join Date: Aug 2023 Location: Colorado iTrader: (0)	Some dealers have promo financing for the month of Nov, 5.29% for 60 months or 5.79% over 72 months with above a 740 credit score (sure debt to income also plays a factor). As for the dealer haggling it is almost inevitable they will try to add in stupid shit like clear coat protection, window etching, etc just make sure you say you don’t want any of that and to remove it if they have “already done it”, most likely they haven’t. With the upsell on financial products they will try to get you on warranty and other service plans that is probably a buyer dependent answer. That being said try to get any of those things reduced by 40-50% if you do elect to purchase because these are major profit vehicles for the dealer and you will be grossly overpaying if you do not haggle.
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11-17-2023, 11:56 AM	#3
M2C4ME Enlisted Member 50 Rep 43 Posts Drives: G80 M3. Join Date: Jun 2018 Location: Hilton Head Island SC iTrader: (0)	They are adding a point to rate but took 6.5% off msrp on car. Planning on putting down 25k and paying off in a year so rate point won’t be that significant.
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11-17-2023, 01:27 PM	#7
LDT Major 1540 Rep 1,147 Posts Drives: 2024 X5 M60i Join Date: Jun 2018 Location: Southeast USA iTrader: (0)	Just say no. __________________ 2024 X5M60i-- Skyscraper/Ivory 2020 Cayenne replaced by ^^ 2017 X5 35d--still in my diesel phase 2015 GL 350--diesel burner/highway queen 2013 Audi S6--a beast in it's day
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11-17-2023, 02:07 PM	#8
eelnoraa Brigadier General 2033 Rep 3,681 Posts Drives: G05 X5 Join Date: May 2022 Location: SF Bay Area CA iTrader: (0)	Maybe also call credit union to see if they have better rate. Get pre-approved with at least one other leader. If bmw financial don't return favorable rate, you have a backup option, or at least a bae for negotiation __________________ 2022 G05 B58/PHEV + a few very old BMWs
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11-17-2023, 03:23 PM	#9
mscot First Lieutenant 189 Rep 303 Posts Drives: 2024 X5 50e Join Date: Jul 2023 Location: Colorado iTrader: (0)	This is a new one. They are only allowing us to put 45k down including the trade in. Kinda pissed.
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11-17-2023, 03:57 PM	#10
travwill Private 29 Rep 75 Posts Drives: 2024 BMW X50e (Del Jan 25) Join Date: Sep 2019 Location: Marble Falls, TX iTrader: (0)	[QUOTE=mscot;30663050]This is a new one. They are only allowing us to put 45k down including the trade in. Kinda pissed. Had dealers do that before. It's so they get the financing payout it seems. They said not to pay if off too fast but they really can't stop you if no prepayment penalty (which never is). I'd say do whatever gets us the best price and benefits/incentives, then payoff to avoid any interest.
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11-17-2023, 07:36 PM	#16
vimalbmw Private 51 Rep 59 Posts Drives: X5 Join Date: Oct 2023 Location: Maryland iTrader: (0)	Same thing for me as well. Got 7% of MSRP but added 1% to interest rate, which is now 6.29%
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11-18-2023, 06:37 AM	#20
CanIDeductIt Private First Class 48 Rep 109 Posts Drives: M340i, Macan Turbo Join Date: Oct 2019 Location: Chicago iTrader: (0)	Add me to the list of people being forced into the 1% interest markup. was planning on putting around $45k down including trade but have not gotten to the point where they are aware of that (X5 has been stuck in Quality Control status for 5 days now). I'm guessing they'll put the same limit on the down payment so that they can make more on the markup. If I do run into that, and I'm sure I will, I'll just make up the difference on the first payment. I don't think BMW financial charges a prepayment penalty, so technically you should be able to pay down the entire loan once the account is setup. The dealer gets some kick back if you hold onto the loan for a few months, and will try to coerce you into doing so, but there's nothing they can do if you want to pay the car off or find a lower rate somewhere and refinance right away. I would almost feel bad doing this to the dealer, especially if they're giving a decent discount of MSRP, but most dealers aren't transparent at all about any of this so I never feel I owe them anything.
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11-18-2023, 07:43 AM	#21
PappyVanBmr Private 53 Rep 67 Posts Drives: X5 Join Date: Nov 2023 Location: NYC iTrader: (0)	Dealer gave me a healthy discount and no markup on the rate. I’ll honor for the short period of time they’ve asked me to assuming everything still goes well before delivery. I wouldn’t accept the mark up.
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11-19-2023, 03:20 AM	#22
eluded 2JZ-GTE 3042 Rep 3,996 Posts Drives: 340 6MT, 50e, others Join Date: Nov 2015 Location: Sofia iTrader: (0)	aim for 10% off and pay cash. __________________ A man who views the world the same at 50 as he did at 20 has wasted 30 years of his life.
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