# 72 Month financing?



## Ted0495 (Sep 12, 2009)

Does BMWFS offer 72 month financing rates at all? I was told they don't but, their website indicates they do, but then again I can't locate or haven't seen any rates. Looking ot finance a 328i over 72 months.


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## beewang (Dec 18, 2001)

I think its silly to finance a car beyond what is generally considered as a "normal reliable useful life".

In general, if you have to stretch your repayment period beyond the norm, you probably should not proceed from sound financial point of view.

I would suggest that you perhaps look into a 3 years lease for affordable payment. In this case the lease makes alot of sense.


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## KingJaffeJoffer (Feb 23, 2009)

The max is 60 months, I believe.


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## NetSpySD (Dec 28, 2007)

beewang said:


> I think its silly to finance a car beyond what is generally considered as a "normal reliable useful life".
> 
> In general, if you have to stretch your repayment period beyond the norm, you probably should not proceed from sound financial point of view.
> 
> I would suggest that you perhaps look into a 3 years lease for affordable payment. In this case the lease makes alot of sense.


+1 Figure out what you can afford each month and multiply by 36. That is the most car you should buy or lease.

Even if you want to finance for 5 years, you should be able to afford the payment in three. If you can't, and money is that tight, should you really be looking at a new car anyway? This is what got us into the financial mess we are in now.


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## Ted0495 (Sep 12, 2009)

wow! I was only looking for some information. Certainly not looking for moral judgments, particularly by people who have no idea of my financial status. And I assure you, no financial decision, circumstance or position of mine has contributed in the least to the national economic situation.


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## petener999 (Jul 26, 2008)

I think 72 months is a little long. But, it doesn't hurt to try.


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## b-y (Sep 14, 2004)

Ted0495 said:


> wow! I was only looking for some information. Certainly not looking for moral judgments, particularly by people who have no idea of my financial status. And I assure you, no financial decision, circumstance or position of mine has contributed in the least to the national economic situation.


It is not a moral issue. Nor did we know how financially savy you might be. The economics of the deal is what worries at least some of us. (Me, for example.) If you make a simple plot of how much you owe at any point in a loan's lifetime and compare it to the expected value of the car, you'll see the "problem". For loans over 48 months or so, there are long periods in the middle of the loan period in which you owe more than the car is likely to be worth. This can cause problems if you want to trade the car in or if it is totaled.

Since not everyone appreciates this effect of longer-term loans, we were just trying to be helpful, for whatever it is worth.


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## beewang (Dec 18, 2001)

Amen!!


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## RichmondR (Aug 28, 2009)

Ted0495 said:


> Does BMWFS offer 72 month financing rates at all? I was told they don't but, their website indicates they do, but then again I can't locate or haven't seen any rates. Looking ot finance a 328i over 72 months.


Ted --

Let me at least try to move your initial question forward.

I dont know the answer, but the longest I see on the bmw website seems to be 60 months, and they refer to 60 months in the general discussion of financing, so I wonder if that's as long as they go. You seemed to say that their website indicates 72 months somewhere? Maybe if we could track that down it would help, otherwise a quick call or e-mail to BMW Financial should answer your question.


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## DonnaBlackson (May 14, 2006)

If you should be able to afford the payment in 36 months, why would they even offer 60 months? i disagree with that theory......if you could afford to finance a car in 36 months then you would do it and not do 60 months, so thats just stupid......i think people should think more about getting into homes they cant afford more than cars....... thats the problem, people bought too much house for what they can afford...... but its silly to say that if you finance a car for 60 months, that you should be able to afford it over 36 months , otherwise u cant afford the car....thats just stupid!


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## FLA 335 (Sep 4, 2009)

DonnaBlackson said:


> If you should be able to afford the payment in 36 months, why would they even offer 60 months? i disagree with that theory......if you could afford to finance a car in 36 months then you would do it and not do 60 months, so thats just stupid......i think people should think more about getting into homes they cant afford more than cars....... thats the problem, people bought too much house for what they can afford...... but its silly to say that if you finance a car for 60 months, that you should be able to afford it over 36 months , otherwise u cant afford the car....thats just stupid!


Let me start off by saying i respect you, i dont know who you are, we have never met, i have no hard feelings towards you, i am just trying to provide a response.

i couldnt disagree more with you. i financed over 60 months at 0.9 percent (i plan on paying off the car in less than 3 years easily)... now why would i want to increase my payment for 0.9% to 36 month? i can afford the car in 12 months... or heck i have more than enough cash to purchase the car OUTRIGHT... that is not the point. the point is to manage your cash flow... if you have say a 50,000 dollar car, there is no point in purchasing it over 36 months as opposed to 60 months due to the time value of money (dollar is decresing in strength and there will soon be inflation) at 0.9 percent... now if it was 1.9%, 2.9%, 3.9%, 4.9%, etc. i agree with your theory but you dont know the specifics and cannot take such an agressive stance...

your comment on the homes is totally irrelevant and has nothing to do with what the OP was asking...


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## DonnaBlackson (May 14, 2006)

haha, good for you, then why didnt you buy 2 BMWs , haha!!


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## DonnaBlackson (May 14, 2006)

why get a 60 month loan then if you can pay it in 36?? and who would bother prepaying at .9 percent!


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## FLA 335 (Sep 4, 2009)

"haha, good for you, then why didnt you buy 2 BMWs , haha!! "

no need to get defensive i was just stating there maybe strategic reasons (financial) for a longer finance term...


"why get a 60 month loan then if you can pay it in 36?? and who would bother prepaying at .9 percent! "

i originally typed several long paragraphs but in short, 60 (longer term) to preserve cash flow and still have the option to pay off early... prepaying at 0.9 you are correct!!! but it is personal preference... i dont like to have liabilities... but in the event that i dont want to prepay... i dont have to...  i wont post anymore as i feel i have offended you and for that i am sorry.


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## tturedraider (Nov 11, 2005)

Ted0495 said:


> Does BMWFS offer 72 month financing rates at all? I was told they don't but, their website indicates they do, but then again I can't locate or haven't seen any rates. Looking ot finance a 328i over 72 months.


I don't know about BMWFS. Pentagon FCU has 4.75% for 72 months. Anyone can join. https://www.penfed.org/howToJoin/overview.asp


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## sammie (Sep 7, 2009)

*yes you can fiance for 72 months*

I went to the dealer this past sunday. YES they will lease for 72 months for a higher interest rate not the 1.9 for 60 months that they have going on now. So Yes to the question. I also called BMW Financing in Ohio they said the same thing.


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## knechtea (Mar 4, 2009)

Wow, this is quite the hot issue. Go ahead and finance for 72 months if that is how you want to proceed. It's not the wisest financial move, but as long as you understand the risks associated go for it. Many people consider leasing an unwise move also, but a lot of times 3 year lease comes pretty close to 72 month loan from a payment perspective.


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## Bremen Ben (Sep 1, 2008)

I think if we really drill down to the "if you have to... then you can't afford the car" arguement, nothing would truly make any financial sense unless we pay cash, upfront, for every car we buy; or at least secure a 0% APR loan (which is impossible these days) and keep the cash in the bank. While people like that are out there (my parents being one; paying cash for every car they have ever owned), I doubt they are majority of the society.


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## bmwKbiker (Nov 5, 2006)

Bremen Ben said:


> I think if we really drill down to the "if you have to... then you can't afford the car" arguement, nothing would truly make any financial sense unless we pay cash, upfront, for every car we buy; or at least secure a 0% APR loan (which is impossible these days) and keep the cash in the bank. While people like that are out there (my parents being one; paying cash for every car they have ever owned), I doubt they are majority of the society.


I think you have taken the can afford stance too far. 
(Maybe that is your point?)

Unless you live and work in a major metropolitan area, with good public transit services, you pretty much need a motor vehicle transportation to be a functioning adult member of our society. The transportation can take many forms, doesn't need to be new, but may be necessary for things like getting to/from employment.

Since even new vehicles can be leased (or financed) for less than $300/month (or even at $199/month). 
Leasing or stretching out the finance term may be prefectly reasonable (up to this amount) or even necessary to acquire basic transportation.

But.....
When we are talking about a 30K+ vehicle it is no longer necessary transportation but a material desire that an individual wants (not needs). In this case, its prefectly reasonable to ask: If it is going to take* 6 years *to pay off the loan wouldn't it be prudent to find a less expensive option. The question becomes even more pertinant when stretching the loan beyond a certain term also results in a significant increase in the interest rate.

There is a general problem in our society that some individuals define affordability, only against the measure of weather or not someone is willing to loan them the money for the purchase. Others, as has been posted, are in a position to pay cash but chose to finance, if the finance rate is artifically low (0.0, 0.9, 1.9) this can be a financially astute choice. Borrowing money, on a depreciating asset, at 2x,3x,4x (or more) times the inflation rate doesn't fall into the astute category.

It is an individual's choice but the consequences of the choice can be long lasting, for an anecdotal case see this thread.


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## the J-Man (Jul 31, 2009)

It's always amusing how people who speak of 72 month loans are told they can't afford the car and are overextending themselves. 

For me, if I can get a rate at 3% or lower (and car loan rates are low right now), I will take as long of a loan as possible. As long as the borrowing rate is cheap, take the lowest monthly obligation you can find (i.e., longer term), and then pay it off early if you are so inclined. The goal is to commit the lowest amount of monthly cash flow. For me, the desire for a longer term has nothing to do with my ability to maintain a high monthly payment. Some people just don't understand this concept or have a good business sense for borrowing. 

Kind of like my brother who feels he is getting ripped off on his mortgage because he has a first and second to avoid PMI. "But why do I have two mortgages, I wish I just had one, I'm paying for my house twice!"


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