# Financing European Delivery



## jerrykdc (May 6, 2003)

I was just at my dealer filling out the papers for BMW financing on my ED. I think that anyone considering ED should consider using BMW financing since BMW is providing insurance on the vehicle while you are in Europe. I would think that if something unfortunate should happen to the car while you are on your trip it would be best to look to BMW to fix the car if it is damaged or replace the car if it is stolen. If the car is stolen and you collect for the car to pay off your bank then where are you. Is BMW going to get you another car, I don't know if they are but I would think that you have a better chance of getting another car if they are financing the car. Presuming that the insurance will pay off your loan and get you back your down payment, you will still have a problem getting another car at the same price if you are taking delivery in the US. I don't know the answer to all of these questions and what happens to a lease is a question which I haven't thought about. This is just something which you might consider when making you financing decision.


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## beewang (Dec 18, 2001)

I disagree... I don't see any advantage financing thru BMW FS. The ED cars are insured by BMW AG via its insurance agent Gerling. The fact you finance thru BMWFS doesn't get you any special treatment. I hope your salesrep didn't tell you that , because that is just not true. If problem arise, Gerling will step up promptly to fix the damage (not BMW AG, or BMW NA or BMWFS).

If you finance, go w/ the lowest rate lender.

beewang:bigpimp:


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## DN325CI (Oct 5, 2002)

FWIW - If you've got some equity in your house, you might go for a HELOC (home equity line of credit).

1. It costs nothing to set up
2. Fairly low interest rates
3. Interest is tax deductible if you are already an itemizer.

and the big reason:

4. Makes you a cash buyer for the car - no liens or other title work required.

Possible downside: most HELOCs have an adjustable rate. However, many fixed rate HE loans are available.

I used this method and wrote a personal check for the car. Apparently the dealership doesn't see that very often. 

EDon


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## jl5555 (Jan 28, 2003)

I disagree with Beewang on this one. BMWFS is an excellent place to finance for the short term. They know the system and the upfront paperwork is enormously easier than arranging financing. Also, the first payment doesn't come until well into the ED process. Since you "pay" for the ED car 30 days prior to Munich delivery, this can make a big difference. On my most recent car, which I picked up on April 25th, the first payment wasn't due till May 25th. I actually received my car here in the states on June 2.

Once 3 months has elapsed, I roll the loan into my home equity loan. The BMW salesguy gets a payment for that. I use it the next year to negotiate for my new car.


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## beewang (Dec 18, 2001)

Okay.. I hear what you're saying.... but are you saying that BMWFS "float" the money to you at no cost (interest free)?? Hard for me to believe that they would not charge interest for the 2 months (according to you) I can understand the skipping of PMT. If they don't amortized the 2 mos interest into the loan and "float you they money" well.... hell!!! that's a deal!!:thumbup: 

beewang:bigpimp:


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## jerrykdc (May 6, 2003)

I simply refinanced my house and took out the cash for the car since the interest rates are dropping and you can get no cost refinancing. I did however, use BMW finance initially and when I get the car from my dealer when I return from Europe I will pay off the BMW loan. My concern is that I will be spending at least 10 days in Italy and I have heard all types of horror stories concerning car thefts in Italy. Let's say the car is stolen and what is going to happen to me. Forget about the problems on the trip and getting another car for the balance of the trip what is the insurance company going to do. Let's say they decide to give back to me my down payment and pay off my loan. Now I have to go to the dealer to buy another car. The dealer is not going to sell to me a 330CIC here in the US for the same price that he sold me one for ED. My thought is that if I bought the car from BMW, insured the car through BMW(comes with ED) and financed the car with BMW, then I have a shot of getting BMW to sell me the same car at the same price back here in the US. I haven't read the insurance policy and I don't know how it is worded but normally if a car is stolen they pay you the value of the car and they do not guarantee that they will replace the car. I think that this could be quite a dispute if it ever came to that in arguing what the value of the car is; i.e. is it the price you paid for ED or is it the amount you would have to pay for it when you tried to replace it. If it is the latter then if you didn't replace it you could make a profit which is not what they are about to let happen. In any event, my point is that by taking BMW financing for ED, you might have a better shot at getting another car should your car be stolen or totalled while you are in Europe.


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## beewang (Dec 18, 2001)

The Gerling Insurance will pay for the full value of the car is the car is Totaled or Stolen (but you MUST be able to produce all keys of your BMW) w/ NO deductible provided that you get another BMW. If you choose to "cash out" or get a car of another brand, they will pay out 90% of the purchased price.

If the unlikely were to occur and you are back at your dealer to order the same car, I would hope that they will sell you the 2nd car cheaper than the first one.
FYI to this day, I have NOT heard of stolen car during ED. There were several cases of total loss on the vehicle, and eveyone involved got 100% his/her money back and got the next car for his/her purchasing dealer at a "better" price 

beewang:bigpimp:


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## Skybum (Sep 6, 2002)

I went with E-loans and didn't have to make my first payment until well after my ED pickup date. I still see no advantage other than dealership comfort with going with BMW FS. They certainly didn't have the lowest interest rate.


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## vkperigord (Jul 17, 2011)

If I live in the States, will a BMW dealer provide "BMW Select" financing for a BMW that I plan to get through the European delivery?

Also, how much taxes are you charged once the car makes it back to the USA?


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## M FUNF (Apr 2, 2008)

I may be mistaken but I was led to believe that if the car is stolen there is a 10% deductible.


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## SD ///M4 (Jan 24, 2011)

vkperigord said:


> If I live in the States, will a BMW dealer provide "BMW Select" financing for a BMW that I plan to get through the European delivery?
> 
> Also, how much taxes are you charged once the car makes it back to the USA?


Do you realize that you resurrected an 8-year old thread? Some of this info is outdated, i.e., Allianz is now the insurance carrier.

You can apply for BMW FS financing at the dealer where you order your car and you can choose the Select financing if you qualify for it. From my understanding, you have to order your car from the dealer that submits your credit app. If you decided to buy at another dealer after submitting a credit app through a dealer, you will have to have the second dealer submit another app.

You pay the applicable state taxes for the state where you pick up the car. BMW FS requires that the tax and registration fees be paid when you sign the final docs, roughly a week before you leave.

M FUNF: You are correct, there is a 10% deductible if your car is stolen


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## dunderhi (Dec 10, 2006)

When there are finance specials, BMWFS can't be beat. When I got my 550, BMWFS gave me 0.9% and a $1,500 credit with zero down. The $1,500 credit is larger than the total interest charged on the loan. :thumbup:


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## 3ismagic# (Mar 17, 2011)

SD 335is said:


> Do you realize that you resurrected an 8-year old thread? Some of this info is outdated, i.e., Allianz is now the insurance carrier.
> 
> You can apply for BMW FS financing at the dealer where you order your car and you can choose the Select financing if you qualify for it. From my understanding, you have to order your car from the dealer that submits your credit app. If you decided to buy at another dealer after submitting a credit app through a dealer, you will have to have the second dealer submit another app.
> 
> ...


This is not completely correct. You pay the sales tax where you live not where you buy. I live in Phoenix and am buying from a dealer in LA. I just did my loan docs and paid AZ sales tax.

Also the previous post that said you have to pay 30 days ahead of delivery is wrong. A week is sufficient. I financed through bank of America with very little problem. The dealer will get the docs a week before pickup in Munich.

There are some advantages to financing with BMWFS.
1. You qualify for subsequent loyalty offers.
2. Your first payment isn't due for 60 days. So you aren't making payments on something you don't have. This is much more important for a lease though.
3. You can only get some incentives like the $750 cash is only available if using BMWFS.
4. You know for sure things will be easier as they know the ED lay of the land where your bank may be weary or not interested.

Despite all of those I got a much better rate from BOA.


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## pharding (Mar 14, 2004)

DN325CI said:


> FWIW - If you've got some equity in your house, you might go for a HELOC (home equity line of credit).
> 
> 1. It costs nothing to set up
> 2. Fairly low interest rates
> ...


If you ever refinance your house with a HELOC you will be charged a higher interest rate on your mortgage. I personally would rather have the HELOC capacity preserved for a real emergency and not use it for a car loan. BMW FS is awesome to deal with and once you establish a track record with them to purchase / lease the next one the credit approval is nearly instantaneous and rather painless. With a HELOC it is easy to skip payments. I would rather keep it simple and separate my home mortgage from from my car loan. If you lease and pass away, the BMW can be returned to BMW FS without an early termination penalty.


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## bayoucity (Jun 11, 2010)

pharding said:


> If you ever refinance your house with a HELOC you will be charged a higher interest rate on your mortgage. ....


I think it depends on individual scenario. My mortgage is 15 years fixed at 5% which is originated a few years back. If necessary I can obtain HELOC at about 4% currently which is subject to 80% equity rule in TX. HELOC doesn't necessary have a higher rates than the primary mortgage.

Now, let say you were lucky to lock in at 3.5% rates a few years back, then the scenario will be vice versa.


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## vkperigord (Jul 17, 2011)

3ismagic# said:


> This is not completely correct. You pay the sales tax where you live not where you buy. I live in Phoenix and am buying from a dealer in LA. I just did my loan docs and paid AZ sales tax.
> 
> Also the previous post that said you have to pay 30 days ahead of delivery is wrong. A week is sufficient. I financed through bank of America with very little problem. The dealer will get the docs a week before pickup in Munich.
> 
> ...


Thanks so much! This was helpful! How long before you order the car at the dealership before you car is available to pick-up in Munich?

Also for the 6-8 weeks that you wait for your car to be shipped from Germany to the USA, does BMW dealer give you a loaner car or cheap rental BMW?

Let us know how your European Delivery goes. How long will you spend driving around Europe?


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## vkperigord (Jul 17, 2011)

SD 335is said:


> Do you realize that you resurrected an 8-year old thread? Some of this info is outdated, i.e., Allianz is now the insurance carrier.
> 
> You can apply for BMW FS financing at the dealer where you order your car and you can choose the Select financing if you qualify for it. From my understanding, you have to order your car from the dealer that submits your credit app. If you decided to buy at another dealer after submitting a credit app through a dealer, you will have to have the second dealer submit another app.
> 
> ...


Thanks!


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## 3ismagic# (Mar 17, 2011)

vkperigord said:


> Thanks so much! This was helpful! How long before you order the car at the dealership before you car is available to pick-up in Munich?
> 
> Also for the 6-8 weeks that you wait for your car to be shipped from Germany to the USA, does BMW dealer give you a loaner car or cheap rental BMW?
> 
> Let us know how your European Delivery goes. How long will you spend driving around Europe?


How long depends. Usually a minimum of 30 days, but it ultimately depends on delivery availability times at the welt and production schedules.

No you won't get a loaner or a rental (unless you pay for it).


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## SARAFIL (Feb 19, 2003)

pharding said:


> If you lease and pass away, the BMW can be returned to BMW FS without an early termination penalty.


This is not true.


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## djfitter (Sep 12, 2007)

vkperigord said:


> Also for the 6-8 weeks that you wait for your car to be shipped from Germany to the USA, does BMW dealer give you a loaner car or cheap rental BMW?


:rofl: :lmao: :rofl:

dj


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## jordanM3 (Jun 18, 2004)

pharding said:


> If you ever refinance your house with a HELOC you will be charged a higher interest rate on your mortgage.


That is not accurate. If you are doing a refi and paying/consolidating off a non-purchase money 2nd lien (such as a HELOC) into a new 1st, you MIGHT face a slightly higher rate depending on your FICO score and LTV (loan to value) ratio. And even then, the fee differences from Fannie/Freddie are very slight, not enough to change the rate for most borrowers.


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## jsublime (Mar 4, 2009)

With penfed offering such low apr on auto loans not sure why anyone would use a heloc. Besides, if something happens and you can't make your auto loan payments, worst case scenario is you lose your car. If you can't make your home equity payments, you may face foreclosure and lose your house.


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## bayoucity (Jun 11, 2010)

jsublime said:


> With penfed offering such low apr on auto loans not sure why anyone would use a heloc. Besides, if something happens and you can't make your auto loan payments, worst case scenario is you lose your car. If you can't make your home equity payments, you may face foreclosure and lose your house.


In Texas, HELOC (Home Equity Line of Credit ) is different than Home Equity Loan. HELOC operates on open revolving account with the cerdit limit ties to 80% of the available equity. There is no minimum monthly payment. The balance simply sit there and accrued ineterest currently at around 3.23% to 4%. You are given the flexibilityin term of when and how you pay off the balance.

On the other hand, Home Equity Loan works just like a traditional mortgage which is subjected to monthly amortized payments.


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## SD ///M4 (Jan 24, 2011)

bayoucity said:


> In Texas, HELOC (Home Equity Line of Credit ) is different than Home Equity Loan. HELOC operates on open revolving account with the cerdit limit ties to 80% of the available equity. There is no minimum monthly payment. The balance simply sit there and accrued ineterest currently at around 3.23% to 4%. You are given the flexibilityin term of when and how you pay off the balance.
> 
> On the other hand, Home Equity Loan works just like a traditional mortgage which is subjected to monthly amortized payments.


Our CU offers a similar HELOC. The minimum payment is 1% of the balance or $100, whichever is more. We were given a check book and credit card tied to the account. The term of the HELOC is 10 years, at which case you could open a new HELOC and transfer any balance. I believe that the interest is tax-deductible.

We didn't end up financing the car this way, but it was an alternative that our CU offered since ED wasn't exactly conducive to their standard auto loan terms. They said that we could pay for the car with the HELOC and then re-finance the car with a new car loan once the car was back in the US, registered, and insured. They offered the same rate for their new car loan as BMW FS did and BMW FS is obviously friendlier for ED, so we went that way. We decided to open the HELOC because we qualified and it's better to get credit when you can and not need it than when you need it and can't.


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## Prost (Nov 23, 2005)

jsublime said:


> With penfed offering such low apr on auto loans not sure why anyone would use a heloc. Besides, if something happens and you can't make your auto loan payments, worst case scenario is you lose your car. If you can't make your home equity payments, you may face foreclosure and lose your house.


Anyone use PenFed for ED?


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## bayoucity (Jun 11, 2010)

SD 335is said:


> ... I believe that the interest is tax-deductible.
> 
> We didn't end up financing the car this way, but it was an alternative that our CU offered since ED wasn't exactly conducive to their standard auto loan terms. They said that we could pay for the car with the HELOC and then re-finance the car with a new car loan once the car was back in the US, registered, and insured. They offered the same rate for their new car loan as BMW FS did and BMW FS is obviously friendlier for ED, so we went that way. We decided to open the HELOC because we qualified and it's better to get credit when you can and not need it than when you need it and can't.


:thumbup:

Exactly, tax-deductible is the advantage of using HELOC. 1098 really helps self-employed individual like myself. The problem is many F.C.U. or Banks are unfamiliar with the ED process, they are more worry about if & when they can get the title. I also decide to get a HELOC because I cannot predict when hurricane is going to destroy my resident & impact my business.


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## Wine-O (Feb 17, 2010)

bayoucity said:


> :thumbup:
> 
> Exactly, tax-deductible is the advantage of using HELOC. 1098 really helps self-employed individual like myself. The problem is many F.C.U. or Banks are unfamiliar with the ED process, they are more worry about if & when they can get the title. I also decide to get a HELOC because I cannot predict when hurricane is going to destroy my resident & impact my business.


I used NFCU (1.9%). They had no clue about ED, but they sent me a voucher for my loan amount, and my dealer put in my VIN cashed it, and my first payment was due 11 July for a 30 May ED. I did get a letter from them requesting the title, but they said I had 90 days to have the dealer send it, so wasn't a problem.


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## dpritchett (Sep 6, 2006)

*PFCU Financing*



Prost said:


> Anyone use PenFed for ED?


I did / am. On line application, instant approval. They sent me a check for the amount I wanted to finance, and I just signed it over to the dealer the last week of May (my pick up in Munich was June 1st). My first payment was due 7/3, so it looks like I'll only have one payment w/o having the car. The 2.49% rate is pretty good too. Navy Federal had 1.9%, but I've been a customer of PFCU for just over two decades now.


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## pharding (Mar 14, 2004)

jordanM3 said:


> That is not accurate. If you are doing a refi and paying/consolidating off a non-purchase money 2nd lien (such as a HELOC) into a new 1st, you MIGHT face a slightly higher rate depending on your FICO score and LTV (loan to value) ratio. And even then, the fee differences from Fannie/Freddie are very slight, not enough to change the rate for most borrowers.


That is not true. My wife and I have 800 credit scores. We are currently refinancing our house. We are paying a higher rate because we have a HELOC. If you have a HELOC the rates are identical as if you are taking cash out of the deal.


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## Wine-O (Feb 17, 2010)

dpritchett said:


> I did / am. On line application, instant approval. They sent me a check for the amount I wanted to finance, and I just signed it over to the dealer the last week of May (my pick up in Munich was June 1st). My first payment was due 7/3, so it looks like I'll only have one payment w/o having the car. The 2.49% rate is pretty good too. Navy Federal had 1.9%, but I've been a customer of PFCU for just over two decades now.


I guess the difference in monthly payment would be a buck or two -- either way, it's a good rate.


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## jordanM3 (Jun 18, 2004)

pharding said:


> That is not true. My wife and I have 800 credit scores. We are currently refinancing our house. We are paying a higher rate because we have a HELOC. If you have a HELOC the rates are identical as if you are taking cash out of the deal.


That is incorrect again. If you are NOT paying off the HELOC, the only reason your rate would be any different is if your CLTV (combined loan to value) is above 90.00%. You can figure CLTV by adding the amount of your first loan + the total line amount of your HELOC, then dividing by the value of the property. There are some other minor exceptions that likely do not apply to this scenario.

Maybe your broker/lender saw an opportunity to make some extra $$.

For the record, I run a large mortgage lender in California.


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## Prost (Nov 23, 2005)

dpritchett said:


> I did / am. On line application, instant approval. They sent me a check for the amount I wanted to finance, and I just signed it over to the dealer the last week of May (my pick up in Munich was June 1st). My first payment was due 7/3, so it looks like I'll only have one payment w/o having the car. The 2.49% rate is pretty good too. Navy Federal had 1.9%, but I've been a customer of PFCU for just over two decades now.


I used PenFed before so I know they are great...but I just am not sure how is it going to work when we will have no title until AFTER we take delivery in about 3 months?


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## dpritchett (Sep 6, 2006)

Prost said:


> I used PenFed before so I know they are great...but I just am not sure how is it going to work when we will have no title until AFTER we take delivery in about 3 months?


You won't pay for the car until shortly before you leave for your trip. Your car won't be produced until about two weeks prior to your pickup. In my case I had a registration and plates before I left for Europe. You don't need a title at this point. They'll give you plenty of time to take care of title and insurance once you get back.


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## TheBry (Dec 18, 2007)

dpritchett said:


> You won't pay for the car until shortly before you leave for your trip. Your car won't be produced until about two weeks prior to your pickup. In my case I had a registration and plates before I left for Europe. You don't need a title at this point. They'll give you plenty of time to take care of title and insurance once you get back.


Exactly! I ordered the car in April of this year, but just paid for it yesterday at the dealer, for pickup at the Welt 13 Sept. And, for the record, I'm a cash buyer.

According to the BMWUSA automated status line, my car is scheduled for completion Tuesday, 6 Sept (one week before delivery). Title, insurance, etc. will all be taken care of when the car is redelivered -- although I'll be activating insurance once it hits the ground in the States (a few days before actually being re-delivered, just to be on the safe side.


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## vkperigord (Jul 17, 2011)

TheBry said:


> Exactly! I ordered the car in April of this year, but just paid for it yesterday at the dealer, for pickup at the Welt 13 Sept. And, for the record, I'm a cash buyer.
> 
> According to the BMWUSA automated status line, my car is scheduled for completion Tuesday, 6 Sept (one week before delivery). Title, insurance, etc. will all be taken care of when the car is redelivered -- although I'll be activating insurance once it hits the ground in the States (a few days before actually being re-delivered, just to be on the safe side.


What autmated status line did you call? What's the numbeR?


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## TheBry (Dec 18, 2007)

vkperigord said:


> What autmated status line did you call? What's the numbeR?


1-800-831-1117
Press 2 for Vehicle Production Status, then enter your production number or partial VIN.


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## vkperigord (Jul 17, 2011)

TheBry said:


> 1-800-831-1117
> Press 2 for Vehicle Production Status, then enter your production number or partial VIN.


Thanks!


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## Prost (Nov 23, 2005)

I applied a loan from Penfed so I guess I have 180 days for title now


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## Technic (Jun 24, 2002)

Can the $1000 Loyalty cash be applied to a purchase financed thru PenFed -or any bank/finance company other than BMWFS?

Can the $1000 Loyalty cash be applied even to ED?


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## Prost (Nov 23, 2005)

Technic said:


> Can the $1000 Loyalty cash be applied to a purchase financed thru PenFed -or any bank/finance company other than BMWFS?
> 
> Can the $1000 Loyalty cash be applied even to ED?


That is my questions too??? Anyone called and find out about this that can share with us? If not, I might call BMWFS to find out.


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## Technic (Jun 24, 2002)

Prost said:


> That is my questions too??? Anyone called and find out about this that can share with us? If not, I might call BMWFS to find out.


BMWFS referred me to my CA when I called. My CA told me that he does not know and will find out.

I read in another forum that the $1000 Loyalty cash can be applied to financing with a non-BMWFS company, but nothing related to ED.


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## Prost (Nov 23, 2005)

Technic said:


> BMWFS referred me to my CA when I called. My CA told me that he does not know and will find out.
> 
> I read in another forum that the $1000 Loyalty cash can be applied to financing with a non-BMWFS company, but nothing related to ED.


Keep us update...I also emailed my CA and see what is he going to say. Anyone knows is this $1000 from BMW to dealer or to customer directly?


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## Technic (Jun 24, 2002)

prost said:


> keep us update...i also emailed my ca and see what is he going to say. Anyone knows is this $1000 from bmw to dealer or to customer directly?


fyi:



technic said:


> can the $1000 loyalty cash be applied to a my2012 m3 thru ed?





[email protected] bmw said:


> yes


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## Prost (Nov 23, 2005)

Yes, my CA also confirm it and I will sign my final paper tomorrow for my ED next Sat :thumbup:


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