# Dear Jon need info on finance rates



## desiguyincali (Sep 9, 2002)

Hi Jon,
I never heard back from your European guy , so I went ahead to my local BMW dealer and ordered the 2003 BMW 330i for 1000 over invoice. 
So now my pick up date is set ot Nov 4 and the car is in production. I wanted to ask you one thing, if you have a FICO score of 700 plus what are the rates you get for a 5 year finance. On kbb i saw that the BMWFS rates are 5.9 for 5 years but when i went to dealer they said that they charge 1 point more then that as 5.9 does not cover the dealer profit. Is this information true? So the rate he is giving me is 6.9 for five year finance 

how much APR / rate should i expect to pay ?
Thanks
R


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## Jon Shafer (Dec 15, 2001)

desiguyincali said:


> *Hi Jon,
> I never heard back from your European guy , so I went ahead to my local BMW dealer and ordered the 2003 BMW 330i for 1000 over invoice.
> So now my pick up date is set ot Nov 4 and the car is in production. I wanted to ask you one thing, if you have a FICO score of 700 plus what are the rates you get for a 5 year finance. On kbb i saw that the BMWFS rates are 5.9 for 5 years but when i went to dealer they said that they charge 1 point more then that as 5.9 does not cover the dealer profit. Is this information true? So the rate he is giving me is 6.9 for five year finance
> 
> ...


I hope that I can be allowed to be perfectly honest here.

You should be able to get the 5.9%.

Your dealer is telling you the truth; they want to make even
more profit from you than what you had originally thought,
or agreed to (in your half of "the meeting of the minds")...

I'm sorry, but it's really too late for me to help you now...



Let this be a lesson for all new car buyers; you must
take into consideration the totality of the deal when
negotiating the purchase of a motor vehicle...


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## operknockity (Apr 19, 2002)

When I was negotiating my car in Dec last year, they did the credit score on me and it came back over 700 (don't remember the exact # but it was quite high). The dealer said that "he had never seen a score that high" and with that score "I could drive anything off the showroom floor with zero down. Even the 180K Z8!". I was mildly surprised at this as my credit has been a bit spotty of late, but what they don't know won't hurt me.

However, I still had to bully them in to giving me financing at 5.5%. They wanted to give me something between 6.5% and 7%, but I told them they had to match the rate at my credit union or they'd lose out on the financing. They hemmed and hawed a bit but finally gave in. Actually they came close enough that it wasn't worth my while to run back and forth to finish the financing.

If you have something/anything in writing that shows you are approved for a loan at a better rate than they want to give you, then make them put their money where their mouth is. In my case I wasn't actually approved for a loan, but had one of those letters saying I was "pre-approved", which was good enough.


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## rbright (Aug 18, 2002)

My dealer doesn't even seem interested in trying to finance my car.

I told them I would shop around rates, they gave me some sites, my credit score is 783, and I got a great rate at peoplefirst (not their listed rate, but 4.75%).

I told my dealer I got a great rate from someplace, they didn't ask who, how much or anything, just said GREAT. They never expressed any interest in financing the car.


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## operknockity (Apr 19, 2002)

rbright said:


> *I told my dealer I got a great rate from someplace, they didn't ask who, how much or anything, just said GREAT. They never expressed any interest in financing the car. *


They are not interested at all or just not interested in haggling over the rate? I'd be surprised that they don't want to do financing as that is a big profit center, but if they are a very small dealer than maybe they just can't afford the staff.

If you have a good rate from somewhere else, then just get the car, but hit them on the new buyer survey.

It might be interesting to see what would happen if you said BMW financing was a condition of sale or you walk.


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## pixelated (Dec 31, 2001)

when I was negotiating my deal and ordered my car, I asked about the financing and asked if they would match the rate at my bank. My sales guy couldn't seem less interested. He said, sure, that's great you've got all that in order. Just remember to bring it back when your car arrives. So with that, I figured, oh, I guess they don't care about negotiating on finance rates. 

BUT, on the day that I come to pick up my car with check in hand, my sales guy asked, um, why not finance with us? I asked him what the best rate he could give me. He said 7.25%. I declined told him my bank was giving me 5.9% at which time, he said, hang on a sec, let me see what I can do. He comes back and tells me that they can finance me at 5.5%. YeeHAW! 

There's always room for negotiation. Bottom line, they want your money.


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## Ben Chou (Dec 24, 2001)

Does anyone know the formula to back out a money factor into a APR? I haven't been able to figure that out..
Thanks,


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## Jon Shafer (Dec 15, 2001)

Ben Chou said:


> *Does anyone know the formula to back out a money factor into a APR? I haven't been able to figure that out..
> Thanks, *


Multiply the money factor by 2400...


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## Ben Chou (Dec 24, 2001)

Jon Shafer said:


> *
> 
> Multiply the money factor by 2400... *


Thanks, Jon.:thumbup:


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## DrewM (Sep 2, 2002)

rbright said:


> *
> I told my dealer I got a great rate from someplace, they didn't ask who, how much or anything, just said GREAT. They never expressed any interest in financing the car. *


I guess it depends on the dealer...I had 5.49% w/Peoplefirst when my 325CiC came in a couple months ago, and walked out of my dealership with a 4.59% rate :thumbup:


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