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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > 4.9 for 60 months or 5.49 for 72 months



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      12-09-2009, 09:42 PM   #1
Matts435coupe
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4.9 for 60 months or 5.49 for 72 months

So as you may have noticed I ordered a new car and I have been asking a ton of questions all over the board. Here's one more. I usually don't like to finance a car for longer then 4 years, but right now the rate is 4.9 for 60 months and 5.49 for 72 months. To me that isn't to big of a difference, if I took 72 monrths I would save 100.00 a month. Yes I could afford to finance the car is 60 easily, but to me if I could save 100.00 a month if the rate is only a little higher, why not do that? I plan to own the car for 3 years so I would be paying for 6 years and I will be putting down a nice downpayment, so I wont be financing the entire amount, what do you guys think?
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      12-09-2009, 09:50 PM   #2
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You can calculate the diffence in financing cost and ask yourself if you can make more money elsewhere with the lower payment.

Neither rate is outstanding. Paying cash would be better if you had some extra cash. Of course, putting the money in the market might yield a 10% annualized return over the next 5 years.

These kinds of decisions are tough.
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      12-09-2009, 09:51 PM   #3
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Your math is only accounting for half of the issue. What are you doing 3 years later? The 100/mo you save now may cost you a lot more in terms of extra balance that you need to cover when you get rid of the car.
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      12-09-2009, 09:58 PM   #4
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I understand that, So the way I figure it. If I keep the car 2 years, that will be 2400 more I owe on the car if I keep it 3 years 3600 which is 100 a month. I am going to put a pretty nice down payment and I am getting 6 grand off sticker, so I shouldn't be in that bad a shape in 2 or 3 years. The 4.9 is not a great rate at all, but 5.49 isnt that much worse, so I figure I might as well go for it.
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      12-09-2009, 10:07 PM   #5
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If you are only keeping the car for 3 years then why wouldn't you lease? Leasing is only paying the loss on the car over 3 years.
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      12-09-2009, 10:17 PM   #6
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If you are only keeping the car for 3 years then why wouldn't you lease? Leasing is only paying the loss on the car over 3 years.
My thoughts exactly.

Why deal with financing and selling when you know now that you only want the car for 2-3 years. Providing you can stay within the mileage (drive 10-15k per year) there's little reason not to lease.
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      12-09-2009, 10:17 PM   #7
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I leased my current car, and realize it isnt for me. When its a lease it doesn't feel like its my car, to me it isn't the same. I want to be able to mod the car anyway I like, and also I don't want to be limited to miles. And finally when I do go to trade it in for a new F32 assumming I like it, It would be nice to save on the tax difference between this vehicle and my new one, that could be like 2,500.00 Those are just a few reasons.

And finally I can get out of it whenever I want, Ill probably take a hit, but I have the option.
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      12-09-2009, 10:28 PM   #8
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Originally Posted by Matts335coupe View Post
I leased my current car, and realize it isnt for me. When its a lease it doesn't feel like its my car, to me it isn't the same. I want to be able to mod the car anyway I like, and also I don't want to be limited to miles. And finally when I do go to trade it in for a new F32 assumming I like it, It would be nice to save on the tax difference between this vehicle and my new one, that could be like 2,500.00 Those are just a few reasons.

And finally I can get out of it whenever I want, Ill probably take a hit, but I have the option.
Not trying to start a pissing contest here, but a leased car is still your car. If it makes more financial sense to lease, who cares if you give the car back after three years or sell/trade it after three. You can do what you want to it, as long as it's returned stock. Realistically, who sells a car with mods anyway? They decrease the car's value and you lose whatever cash you put into them. Just take the mods off, sell them to earn some money back, and give the car back. I understand mileage restrictions can be annoying, but if you know you won't put more than 45-50k miles on the car in three years it shouldn't matter much.

And in many ways, getting out of a lease is just as easy (if not easier) than selling a car. You can swap the lease to someone else using one of the many established services out there, and walk away without losing a dime. Or you can pay out the remainder of the payments, and probably lose what you would by financing.

But do what you're most comfortable with, that's what matters.
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      12-09-2009, 10:29 PM   #9
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I wonder, what the ratio on here is of people who lease versus people who purchase.
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      12-09-2009, 10:31 PM   #10
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I wonder, what the ratio on here is of people who lease versus people who purchase.
On an enthusiast forum, I think more people are inclined to finance. They may want to mod the car and keep it for a while. But overall, somewhere around 65-70% of all BMWs sold in America are leased.
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      12-09-2009, 10:33 PM   #11
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Well the way I see it, I can finance the car for 75 more a month then my lease if I do it for 6 years. If I paid off the whole car in years( which I don't plan to do) it will cost me an extra 1,800 over the years. But when I go to trade it in, I can save about that amount in taxes, so it makes up the difference.
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      12-09-2009, 10:36 PM   #12
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imho 72 mos. of paying interest on a car is way too long. Better to drop it to 36 mos. and if the payment is too high on a BMW, then get a nice Nissan or Toyota...
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      12-10-2009, 09:19 AM   #13
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Quote:
Originally Posted by jopa489 View Post
My thoughts exactly.

Why deal with financing and selling when you know now that you only want the car for 2-3 years. Providing you can stay within the mileage (drive 10-15k per year) there's little reason not to lease.
you can also buy extra miles at the time you sign the lease to kill the residual and then possibly buy it at the end. (if you have a company paying for the lease anyway)
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      12-10-2009, 09:22 AM   #14
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Where are you getting these rates? The current BMWFS rates are 3.9%/4.9% (328/335) with a $1500/$2500 Holiday Credit?
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      12-10-2009, 02:01 PM   #15
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Im assuming their is holiday cash in those finance rates...IF not Pentagon FCU has better rates than that if your DOD civilian or military
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      12-10-2009, 06:03 PM   #16
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Im assuming their is holiday cash in those finance rates...IF not Pentagon FCU has better rates than that if your DOD civilian or military
+1 www.penfed.org

Current rate is at 3.9%

Took 3 days to receive my loan in the mail, they are pretty quick
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      12-12-2009, 07:16 PM   #17
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Week ago I purchased preowned certified 328i and BMW financial gave me rate 2.9% for 60 months, simple credit, no penalty if i pay off earlier, no down. In addition BMW is making my first two payments. It took BMW less than 20 minutes to process my credit app, instant decision.

While I make two payments each month (to pay off my car in 2-3 years) I like to have my payments low just in case my job would go south or anything unexpected happend!!!

BTW, Grow Financial Credit Union gave me 4.99%.

Thanks BMW!!!
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      12-12-2009, 11:56 PM   #18
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Quote:
Originally Posted by niebyl2002 View Post
Week ago I purchased preowned certified 328i and BMW financial gave me rate 2.9% for 60 months, simple credit, no penalty if i pay off earlier, no down. In addition BMW is making my first two payments. It took BMW less than 20 minutes to process my credit app, instant decision.

While I make two payments each month (to pay off my car in 2-3 years) I like to have my payments low just in case my job would go south or anything unexpected happend!!!

BTW, Grow Financial Credit Union gave me 4.99%.

Thanks BMW!!!
Your rate was CPO only. The OP was inquiring about new car rates
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      12-13-2009, 09:52 PM   #19
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Im assuming their is holiday cash in those finance rates...IF not Pentagon FCU has better rates than that if your DOD civilian or military
You don't even have to be associated with the military at all either to become a member at penfed. Just donate $5 and start a share savings with $5 and you're in.
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      12-13-2009, 09:53 PM   #20
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Quote:
Originally Posted by niebyl2002 View Post
Week ago I purchased preowned certified 328i and BMW financial gave me rate 2.9% for 60 months, simple credit, no penalty if i pay off earlier, no down. In addition BMW is making my first two payments. It took BMW less than 20 minutes to process my credit app, instant decision.

While I make two payments each month (to pay off my car in 2-3 years) I like to have my payments low just in case my job would go south or anything unexpected happend!!!

BTW, Grow Financial Credit Union gave me 4.99%.

Thanks BMW!!!
Hey there I'm looking at a cert. 335i at my local bmw dealership and was wondering how much lower I could get them on the price, realistically. Did you bring them down at all? If so, if you don't mind me asking, how much? Thanks.
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      12-13-2009, 11:22 PM   #21
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You don't even have to be associated with the military at all either to become a member at penfed. Just donate $5 and start a share savings with $5 and you're in.
True but you do have to meet one of the seven criteria to become a member.
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      12-14-2009, 03:55 PM   #22
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True but you do have to meet one of the seven criteria to become a member.
Yes and one of the criteria is to donate money to the military, that's how I got in. I have absolutely nobody in my family or friends that are in the military, just donate, open an account and your done.
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