[baadsha88]

Originally Posted by BlkGS

2 points is worth less than 2 extended service contracts to them. You could have found out they up sold your rate, or refinanced it immediately at a credit union, or any number of other things. They get way more kickback from base rate + 2 contracts than just 2 points over base.

The finance paperwork will get mailed to you after. You can refinance it before they get it to you. The bank will take a few days to weeks to get the account set up.

When I bought my X5, the shady ass dealer marked my rate up by like 10 points and told me "you have to keep it for 3 months". They were full of bs, and I had the paperwork set to refinance it within the week I got it, and the local CU worked with BoA to get it sorted out once they created the account it was solved within the day.

I think i’m going to wait until I get the service contracts refunded before i refinance, that way i’ll be refinancing a smaller amount = smaller monthly payments. But I did get the 5.69% anyways so I’m not sure If anyone can give me a lower rate at this time.

[Galex999]

I never add anything extra when I purchase or lease my vehicles no matter how good it may sounds. The finance guy get some percentage of it, so he or she will do anything to convince you to sign for it.

Why would you even consider paying something UPFRONT when there is no guarantee that you'll owe the vehicle that long?! Anything can happen. The car can get totaled, stolen or just simply you decided to get rid of it sooner. It's a pure "fear" marketing scheme to make you feel uneasy and nervous for not signing for it.

Contrary to what they say, most extended maintenance/protection/warranty add ZERO extra value when you sell your car unless you find an individual buyer who is willing to pay more for those stuffs. When you trade it in or sell it online through Carvana/Carmax/KBB, they don't care if your vehicle has those or not.

[BlkGS]

Originally Posted by Galex999

I never add anything extra when I purchase or lease my vehicles no matter how good it may sounds. The finance guy get some percentage of it, so he or she will do anything to convince you to sign for it.

Why would you even consider paying something UPFRONT when there is no guarantee that you'll owe the vehicle that long?! Anything can happen. The car can get totaled, stolen or just simply you decided to get rid of it sooner. It's a pure "fear" marketing scheme to make you feel uneasy and nervous for not signing for it.

Contrary to what they say, most extended maintenance/protection/warranty add ZERO extra value when you sell your car unless you find an individual buyer who is willing to pay more for those stuffs. When you trade it in or sell it online through Carvana/Carmax/KBB, they don't care if your vehicle has those or not.

As a counterpoint (kind of devil's advocate here, because I agree about not paying for an extra insurance policy), most of them are refundable if you sell or trade the vehicle. They make sense for people who have no savings and aren't going to be getting savings anytime soon (think college kids).

I can understand the desire to have one on a BMW. Coming from someone with their first BMW, I was terrified of it because BMWs are well known outside of BMW circles for being utterly unreliable money pits. BMWs have a really bad reputation for leaks of any fluid they hold basically, and a lot of them literally had spots for an extra quart of oil in case they burn it or leak it out. All that said, I do think BMW has turned the corner on that sort of stuff, and builds a quality motor now. While they are absolutely cheaping out on features and the interiors now, the motors appear to be well designed now.

[Galex999]

Originally Posted by BlkGS

As a counterpoint (kind of devil's advocate here, because I agree about not paying for an extra insurance policy), most of them are refundable if you sell or trade the vehicle. They make sense for people who have no savings and aren't going to be getting savings anytime soon (think college kids).

I can understand the desire to have one on a BMW. Coming from someone with their first BMW, I was terrified of it because BMWs are well known outside of BMW circles for being utterly unreliable money pits. BMWs have a really bad reputation for leaks of any fluid they hold basically, and a lot of them literally had spots for an extra quart of oil in case they burn it or leak it out. All that said, I do think BMW has turned the corner on that sort of stuff, and builds a quality motor now. While they are absolutely cheaping out on features and the interiors now, the motors appear to be well designed now.

I agree you may want to add extended warranty when you purchased a used BMW.

When you add any kind of "extra" warranty or service contract when you buy a new car, remember that you'll be also paying "interest" on them throughout the loan term. You may think you're getting a great deal, but you're not.

For example, if you add $3k of extended warranty/maintenance for 6% APR and 60 months, you'll paying ~$480 on added interest alone. Why on earth would you pay something upfront and also pay interest on things that you may never use?! This is how car dealers are making extra money; not only on the added stuffs but also charging interest on them; double taps for the consumers.

And good luck to those who try to get refund on unused pre-paid warranty or maintenance plans. They'll probably let you run around circles until you finally give up.