First time car finance - how bad is this deal?

[Zeroblade]

I already know this deal is bad. I just don't know how bad.

I been tempted to finance a used 2017 M3, 20k miles fully loaded. It'll be my first M and first car under my name.

My credit is excellent but I have no history of having big purchases hence no collateral and no co-signer.

Through the dealer, their bank returned the following:

6.79% APR
72 Months
6k down
loan is for $56,783
-chance to restructure all this after 6-8 months to lower apr by a point and extend to 84 months.

The total cost is $62,783. which includes tax, gap, reconditioning, vsi, registration

their story is normally anything above 50k is rejected cause of no car loan history and therefore high apr.
I'm fortunate to afford the payments but this kind of deal seems unavoidable for me to obtain my dream car. Stay or walk?

[M3anth]

Have you checked with other local banks and credit unions? The dealer will always inflate the APR because they get paid for it. You could probably get a lower rate from the same bank going directly to them and leave the dealer out of the financing.

[SMGCFP]

The rate is high. Being a 1st time buyer doesn't mean you pay a higher rate automatically. The car is your collateral. You can finance this car through your own bank or credit union...or any bank that does auto loans. If you have credit history (run a credit report with FICO score) then you should be able to get a favorable rate. Plus, you're putting money down. In my opinion, this dealer is holding points above the buy rate and attempting to make money off of your impulsivity.

Tell them you're going to shop the rate and you'll get back to them in a couple days. They will either change their tune, or let you shop the rate. You should be able to get something in the high 4's, low 5's.

This assumes you don't have late payments or other credit dings.

[Zeroblade]

I went to a big bank to get a loan for a another m3 similar to this one but was denied. I asked for 60k for 60 months and nothing down that time.

I was aware of better rates from credit unions and having a friend give me something on that side but currently not a member of one. This will be my last shop as I don't want anymore hard pulls on credit

[SMGCFP]

Originally Posted by Zeroblade

I went to a big bank to get a loan for a another m3 similar to this one but was denied. I asked for 60k for 60 months and nothing down that time.

I was aware of better rates from credit unions and having a friend give me something on that side but currently not a member of one. This will be my last shop as I don't want anymore hard pulls on credit

Ok. It's a high rate. Do it if you feel like you have to.

[The Murder 335i]

that rate

[Pauldunlop13]

Originally Posted by SMGCFP

Ok. It's a high rate. Do it if you feel like you have to.

And then wait 3-6 months and hit up RateGenius. I was getting 5% for a 2015 M4 from BMWFS and I got 3.49%, 3 months later from a credit union found through RG

[Pauldunlop13]

Also, throw extra money at the loan starting right away. Even if it is only $50 every month. This will have the biggest impact on a higher interest loan.

Your monthly interest will be $355.

That is a reason to make an interim step before jumping into this car. (a 30k car for the next year or so)

[G35POPPEDMYCHERRY]

do u invest....do u save....impt questions for inking a 60k+ loan to your name...

constructively

Penfed or BOA are going to be your best lenders.

ive tried rategenius,,,lendingtre....myautoloan....all a scam....a middle man who send your shit to a bunch banks that run your credit....you will never get the advertised rate because its bs

edit: you would be paying almost 10k at that rate at the end of the day bringing youjr total spent to 70+k....your better off buying new and snagging promotional new car finaicning....whcih likely you wont be approved without cosigner

idk seems like a lot of addnt bread to throw out for a car....i wouldnt

you cant make big pruchases like this without liquid or a co-signer....I had a 6 figure job lined up and still needed a co=sign on lease for lowest MF. so either find a co-signer...or get a cheaper car

[papasmurf_m3]

Does it have to be 2017? You can get same car 15 or 16 for 10k+ less with more miles.

I've been looking also and 17s are still high, not worth it imo when you can get the same car for a lot less money.

[mardibob]

Dealer offered me 3.xx% and claimed that was best rate through bmwfs... that's all BS. I secured my own financing with credit union and used that to negotiate and then bmwfs best rate was 1%.

I would try to secure a better rate then use that to negotiate a lower rate through dealer/bmwfs. Just my experience. I'm no expert.

[Zeroblade]

Yeah this is no dice, I had a feeling that rate adds too much to the overall costs and having another seals it. I'll need to work with something smaller to get reach this goal in the future.

It's doesn't have to be a 2017. Given the price and condition of the car I knew it was worth while. Additionally I like my cars fully loaded as I have no intention of replacing it. A lot of 2015 I've seen are strippers or has strange color/packages

[damageprone]

That's a high rate. Do as others have said and shop around for a good rate BEFORE going into the dealer.

I walked into the dealer with my pre-approved documentation ready. The dealer said they couldn't offer me anything better than 6% with an excellent credit score. I pulled out my paper showing them I didn't need them, and they magically were able to drop that number to 2.49%.

Do your homework.

[Zeroblade]

BTW

Does anyone know if the blind spot monitoring, lane keep and early warning is standard on 2017 M3? Car I'm looking at doesn't have the 3 buttons on dash to left of steering wheel but supposedly it still has those features?

[Flacht3]

Originally Posted by Zeroblade

My credit is excellent but I have no history of having big purchases hence no collateral and no co-signer.

No history of big purchases should still get you a much better rate than this if your credit is truly "excellent". Are you 700+? Had credit cards for a while? Any student loan debt? Something seems off here.

Originally Posted by Zeroblade

Through the dealer, their bank returned the following:

The dealer's bank is usually the worst. As other's said, go check Bank of America (low 3%s isn't uncommon with them) and local credit unions.

Originally Posted by Zeroblade

I'm fortunate to afford the payments

Honestly if you can "afford" the payments only by financing at 6.79% over 6 years then you can't "afford" the car. If you have the money, try putting $30k down and see if that gets you closer to 3%. If you can't put $30k down then you may thinking about "afford" all wrong.

As others said, you may want to shop around for 2016 or even 2015. You'll save $10-$15k (25%) for a car that's 99% the same. If that helps with the affordability and/or loan rate then it's worth it.

[Zeroblade]

Pretty much anyone I speak to is confused by the rate. My credit with the 3 unions is above 750 (one even 800+). It matured to 5 years now

I know enough that paying more interest than I get away with is a bad deal. I do have few credit cards and student loans yet no history with car loans. As a first time buyer and going after something thats 62k after taxes is apparently spooking the banks.

I'm checking with a credit union last before I walk. I'm thinking to just get something small like a motorcycle for a year and try again. This way that additional 12 mo could be something tangible than more money in the dealer's pocket while having some more hair on credit history chest

[mrfox]

Originally Posted by Zeroblade

BTW

Does anyone know if the blind spot monitoring, lane keep and early warning is standard on 2017 M3? Car I'm looking at doesn't have the 3 buttons on dash to left of steering wheel but supposedly it still has those features?

I don't think it was standard at any point. Blind spot was available as a stand-alone option (if I recall correctly), but lane keep assist and other aids were part of a driver assist package.

A test drive should make it easy to tell; the lights for lane keep assist are in every cluster. If you drift and they don't come on, you have your answer.

Reference - my ZCP 18 has blind spot but no driver assist features.

[SMGCFP]

OP, some good advice in this thread. I didn't lease an M car until I owned a home, had a 250k+ income, AND was saving 25% of my income. Cars are not the status symbols they used to be. Almost anyone can drive whatever they want if they want to pay the price, even if it means spending all of their income to do it.

Don't get lured by the shiny object. Decide if driving an M car is a high enough priority to strap yourself with a ridiculous interest rate. Also sounds like you have consumer debt (that you're probably paying interest on). Some people will tell you debt is inevitable and that everyone has it. So it's okay. A mortgage? Sure, as long as you have a good loan to value. Lease a car? I say sure, it's a depreciating asset. A smarter financial choice is a 3 or 4 year old car, but as I said in the beginning, the car is my indulgence, because the rest of my financial life is in order.

Stupid people pay interest, smart people collect it.-Warren Buffett

[N1rve]

That is a terrible deal. You're going to be paying a lot of interest especially at that rate. Just because you can afford the payments, don't forget about insurance, tires, gas, registration. My BMW M4's registration is 755 dollars for reference.

Financially it's not a good move as well. You "think" you can afford the payments, but at that term, that means no. I would never finance a car more than 36 months, I would only do anything longer than 36 months if I was given 0% APR.

If you have the money, I would at least put more down, maybe 30-40K to minimize interest payments. Look elsewhere for a loan.

In short -- if you really want it, put more down (30-40K) and try a different bank for a different rate (something less than 4%) and shorten the term to 36 Months so you don't pay more interest. With a smaller loan request, you'll more likely get approved for the loan.

[zeroM3]

Listen to the advice in your thread-

That's the sort of deal that will set you back a decade- not worth it. Car payment should be no more than 20% of your bi-weekly paycheck (closer to 5% if you want to really get ahead financially).

[damageprone]

FYI, if you go to BMWNA's website, they are offering 1.99% APR for 48 months to all 2015–2017 BMW Certified models. Offer valid through 7/1/2019. Trick is to find a CPO M car. Sometimes that is hard to find.

You're welcome.

[arciga18]

Originally Posted by damageprone

FYI, if you go to BMWNA's website, they are offering 1.99% APR for 48 months to all 2015–2017 BMW Certified models. Offer valid through 7/1/2019. Trick is to find a CPO M car. Sometimes that is hard to find.

You're welcome.

They may even offer / allow 2.99 for 60.
Typically the longer term goes up 1%