new finace rate

raistlin · 04-12-2007, 06:49 PM

First i like to say hello

Bought a new e90 at the end of march with a finance rate of 5.9%. Not even a week later the rate drops to 4.9%. Spoke with my dealer and they said nothing they can do. I wrote to BMW hoping to get a good response. Has anyone had a experience like this, and what was the outcome?

wkjeepsrt8 · 04-12-2007, 07:03 PM

My feeling is that it's like a mortgage rate. You pay whatever's on the contract. If it goes up, you feel great, if it goes down, you feel like crap.

canucklion · 04-12-2007, 07:46 PM

uh, you're stuck with 5.9%

Maxtor · 04-12-2007, 08:21 PM

My dealer said that if the lease rate dropped between when I signed my contract and when I took delivery of the car that I would get the lower rate. We wrote that into the contract of sale to be sure. When I ordered the car the lease rate was 5.9% and it is now 4.9%.

This will end up saving me about $25/mo off the lease when I pick up the car next month. Not huge, but every bit helps.

raistlin · 04-12-2007, 08:27 PM

I Will post BMW's reply, if i get one

ElCapitan · 04-12-2007, 10:33 PM

Quote:

Originally Posted by Maxtor

My dealer said that if the lease rate dropped between when I signed my contract and when I took delivery of the car that I would get the lower rate. We wrote that into the contract of sale to be sure. When I ordered the car the lease rate was 5.9% and it is now 4.9%.

This will end up saving me about $25/mo off the lease when I pick up the car next month. Not huge, but every bit helps.

That is what I was always told by my CA (three cars in less than five years). I was told if rate goes up between signing and delivery you are protected but if the rate goes down, your previous signed rate is reduced.

alanchan · 04-13-2007, 12:17 AM

I think your BMW sales person should honors you the low finance rate.
They probably know the rate will drop but play dumb try to close the sales.
I was told they are trying to close as many sales as possible at the end of the month.

Maxtor · 04-13-2007, 08:34 AM

My CA told me the reason they honour the reduced rate is so that people will order cars without waiting around to see if the rate will drop.

For example, when I ordered in February he said he anticipated a rate change might come in April, but if I waited til April to order I would not get the car until June or July. Likewise, if I wait until July to order the car the rate might be lower still, but then I might not get the car til September.

This way you order the car when you are ready to pull the trigger and if the rate drops before you take delivery you get the better rate. Win-Win.

He seemed to suggest that BMW adjusts rates every calender quarter, but I haven't been tracking this, and it seems a strange way to do it as you can't adjust to market forces if you are locked into a schedule... (ie if the G35 is at 3.9% do you want to be out there with a 6.9% rate til the month end?)

04-12-2007, 06:49 PM	#1
raistlin New Member 0 Rep 8 Posts Drives: 335i Join Date: Mar 2007 Location: gatineau Cdn iTrader: (0)	new finace rate First i like to say hello Bought a new e90 at the end of march with a finance rate of 5.9%. Not even a week later the rate drops to 4.9%. Spoke with my dealer and they said nothing they can do. I wrote to BMW hoping to get a good response. Has anyone had a experience like this, and what was the outcome?
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04-12-2007, 07:03 PM	#2
wkjeepsrt8 Enlisted Member 0 Rep 33 Posts Drives: Mini Cooper S Join Date: Mar 2007 Location: YQT iTrader: (0)	My feeling is that it's like a mortgage rate. You pay whatever's on the contract. If it goes up, you feel great, if it goes down, you feel like crap.
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04-12-2007, 07:46 PM	#3
canucklion pull my finger to get your kinder® surprise 148 Rep 10,455 Posts Drives: circles around you Join Date: Dec 2005 Location: Toronto, Canada iTrader: (9)	uh, you're stuck with 5.9% __________________
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04-12-2007, 08:21 PM	#4
Maxtor First Lieutenant 12 Rep 382 Posts Drives: 2011 335xi sedan Join Date: Mar 2007 Location: Toronto iTrader: (0)	My dealer said that if the lease rate dropped between when I signed my contract and when I took delivery of the car that I would get the lower rate. We wrote that into the contract of sale to be sure. When I ordered the car the lease rate was 5.9% and it is now 4.9%. This will end up saving me about $25/mo off the lease when I pick up the car next month. Not huge, but every bit helps.
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04-12-2007, 08:27 PM	#5
raistlin New Member 0 Rep 8 Posts Drives: 335i Join Date: Mar 2007 Location: gatineau Cdn iTrader: (0)	I Will post BMW's reply, if i get one
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04-13-2007, 12:17 AM	#7
alanchan Major 72 Rep 1,402 Posts Drives: 2006 323i Join Date: Jul 2006 Location: Vancouver, BC, Canada iTrader: (21)	I think your BMW sales person should honors you the low finance rate. They probably know the rate will drop but play dumb try to close the sales. I was told they are trying to close as many sales as possible at the end of the month.
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04-13-2007, 08:34 AM	#8
Maxtor First Lieutenant 12 Rep 382 Posts Drives: 2011 335xi sedan Join Date: Mar 2007 Location: Toronto iTrader: (0)	My CA told me the reason they honour the reduced rate is so that people will order cars without waiting around to see if the rate will drop. For example, when I ordered in February he said he anticipated a rate change might come in April, but if I waited til April to order I would not get the car until June or July. Likewise, if I wait until July to order the car the rate might be lower still, but then I might not get the car til September. This way you order the car when you are ready to pull the trigger and if the rate drops before you take delivery you get the better rate. Win-Win. He seemed to suggest that BMW adjusts rates every calender quarter, but I haven't been tracking this, and it seems a strange way to do it as you can't adjust to market forces if you are locked into a schedule... (ie if the G35 is at 3.9% do you want to be out there with a 6.9% rate til the month end?)
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