# BMWFS Payoff questions



## alee (Dec 19, 2001)

BMWFS wants a certified check to pay off my 330Ci (yay! 2.5 yrs of payments, and I've had enough, never again).

If I submit a regular payment, BMWFS doesn't care what kind of check it is, as long as it's not a bouncy kind.

Questions:
1. If I submit a non-bouncy regular check to BMWFS for the payoff amount and mail it to the regular payment address, will I somehow disrupt the system, cause trouble for myself or otherwise?

2. On 12/6, I requested a payoff quote, Good Thru 12/16. On 12/8, I (foolishly) requested a new payoff quote, Good Thru 12/18 which is $5.53 more (approx 2 days worth of interest). What happens if I send the payment which reflects the 12/6 quote vs. the 12/8 quote?

3. Am I making this process too difficult? Should I just follow the rules of the payoff loan, send a certified check for the 12/8 quote and be done with it? I thought paying off a car was supposed to be simple and liberating, not complicated and annoying. :banghead:


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## ayn (Dec 19, 2001)

if they asked for a certified check, then send them one. and send in the higher amount, if it turns out to be too much, they will cut you a check for the difference.

--Andrew


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## Cliff (Apr 19, 2002)

I'd send them a cashier's check (i.e.: a check issued by your bank). In California, at least, a certified check is a very funky instrument and it costs more. I would also use the 12/8 payoff quote unless they'll confirm the prior quote is still valid.


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## ObD (Dec 29, 2001)

#3, if there is any overage, they'll send the overage back. Definitely use a certified check.


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## alee (Dec 19, 2001)

Cliff3 said:


> I'd send them a cashier's check (i.e.: a check issued by your bank). In California, at least, a certified check is a very funky instrument and it costs more.


I never did figure out the difference between a cashier's check and a certified check. Aren't they both as good as cash to the payee? :dunno:


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## HankM3 (Nov 5, 2002)

I used a cashier's check I got at my bank. The bank I use doesn't offer certified checks anymore because of all the hassles. BMWFS accepted it no problem.

Interestingly, I sent in the payoff quoted amount, and then a few weeks later got a check in the mail for $1.51. ??? Guess their payoff quote system isn't 100% accurate.


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## Cliff (Apr 19, 2002)

alee said:


> I never did figure out the difference between a cashier's check and a certified check. Aren't they both as good as cash to the payee? :dunno:


Yep. 20 years ago when I worked as a bank operations officer, a certified check started life as a customer's check. It was packaged up and certified by the bank, the funds were deducted from the customer's account and credited to a special bank account, and this gussied up check was given back to the customer. They were a massive PITA to issue. Just buy a cashier's check. If it were my loan, in the absence of instructions from BMWFS to the contrary, I would specify my loan number as the payee (i.e.: BMWFS account #nnnnn).


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## Mika (Oct 8, 2003)

Unless you need the paid in full paperwork sent post haste there's no need to send a cashier's check. and if it really needs to be done that fast why not wire the $? most financial services companies won't refund you unless the overage is over a certain amount like $25. Send the 12/6 poff quote if you think the $ will get there by the good to date. Say you were a few bux short.......I would close the loan if I was BMWFS (I have have done a similar job w/a comparable comany)


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## Mr. The Edge (Dec 19, 2001)

alee said:


> 2. On 12/6, I requested a payoff quote, Good Thru 12/16. On 12/8, I (foolishly) requested a new payoff quote, Good Thru 12/18 which is $5.53 more (approx 2 days worth of interest). What happens if I send the payment which reflects the 12/6 quote vs. the 12/8 quote?


I assume the difference is because of the two extra days. The first one is the amount required if they receive the $ on 12/16. The second, if they receive it on 12/18.

If they receive it before then, you will receive a check reflecting the even earlier payoff.


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## missing23 (Feb 1, 2002)

Food for thought...I have paid cash for a few cars over the past several years and I have come to believe it was not prudent to have so much $ tied up in a depreciating asset...especially when interest rates are so low...use your $ in some carefully though out investment such as real estate, business investment, etc.

Even if you don't immediately sink the cash in some investment leave it in some semi liquid state so you can pounce on that investment when the opportunity presents itself rather than having that cash tied up in a car.

Live and learn and this is what I have learned, my $0.02.


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## Nde (Oct 23, 2003)

Here's my 2 cent. Alittle different with Greg. I pickup and paid off my 325CIC last week. No loan no nothing. Walk in with a $40k+ personal check.

My deal is I open up a home equality loan. $50,000 loan is about $300+ per month for 10 years. Each payment I made is tax deductible with the IRS. Which is way better than an Auto loan, $50K auto loan is about $700 a month with no tax deduction. 

Home loan can pay off any time. Put your $40K cash in a non-taxable bond or CD for 6 month or 1 year at 1.95%.

Again, my 2 cent.


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## missing23 (Feb 1, 2002)

Nde said:


> Here's my 2 cent. Alittle different with Greg. I pickup and paid off my 325CIC last week. No loan no nothing. Walk in with a $40k+ personal check.
> 
> My deal is I open up a home equality loan. $50,000 loan is about $300+ per month for 10 years. Each payment I made is tax deductible with the IRS. Which is way better than an Auto loan, $50K auto loan is about $700 a month with no tax deduction.
> 
> ...


A good thought...only downer is the length of the loan term and the amount of interest you will pay which would be way more than a 5 year auto loan...the equity loan is deductible as you said...still would have to sit down and do the math on this one.

FYI, I'm leasing my ZHP for about a 1% rate so pretty much nothing will beat that.


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## Nde (Oct 23, 2003)

Yeah, I know. My thing is never paid off your home mortgage and equality. Borrow the max you can. Always save cash cash cash. No credit card dedt, no auto loan, no Macys credit card . Just 1 credit card and lots of bonds and CDs. And Bush is staying another term, gold, gold gold. 

Oh if you have a business to claim, leasing is the way to go.


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## woohoo (May 29, 2003)

alee said:


> What happens if I send the payment which reflects the 12/6 quote vs. the 12/8 quote?


They will send you the overage if you are "early" with your payment. Honda did that when I paid the quoted amount a few days early. I saved a few bucks in interest (like $5).


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## Andy (Jul 16, 2003)

You'll receive your title sooner if you send them the certified check (in like 2 to 3 days). Otherwise they keep your title for like 30 days or so.

In regards to financing a car compared to paying cash, here is my two cents...

I am currently financing my $40k car with BMWFS at 2.9%. I've got the money to pay cash for the car right now, but quite frankly I'm earning a heck of a lot more then 2.9% in the stock market. The time to finance a car at a low interest rate and leave your money in the stock market IS NOW!!


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## SergioK (Aug 14, 2002)

Why not pay it off via the Ultimate Pay option through the owners circle?


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## alee (Dec 19, 2001)

sergiok said:


> Why not pay it off via the Ultimate Pay option through the owners circle?


It's all too complicated.  I'm going to the bank on Saturday, get my cashier's check, and will mail it off and be done with it. I've already spent too much time trying to make it easier for myself.


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## Andy (Jul 16, 2003)

sergiok said:


> Why not pay it off via the Ultimate Pay option through the owners circle?


Payoffs can not be done via UltimatePay on the Owners' Circle. The payment limit for an UltimatePay is like $5k or something.

Alee, congratulation on paying off your car, I'm sure that's a great feeling. :thumbup:


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## alee (Dec 19, 2001)

Andy said:


> Alee, congratulation on paying off your car, I'm sure that's a great feeling. :thumbup:


Thanks.  It'll feel much better after I have the check in hand and mail that sucker off.  Merry Christmas to me. :thumbup:


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## elbert (Mar 28, 2002)

alee said:


> It's all too complicated.  I'm going to the bank on Saturday, get my cashier's check, and will mail it off and be done with it. I've already spent too much time trying to make it easier for myself.


Yes. One thing I've learned is don't complicate things because it will take a lot longer to fix whatever got screwed up. Be done with it and forget it.

PS BMWFS has been more than helpful, unlike those bastards at BMWNA. The latter could learn something about customer service from the former.


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