Financing options for lease buyout (US)

itrocks4u · 11-24-2021, 09:19 AM

Hello

I reached out to BMW FS for financing option if I wanted to buyout my lease. They transferred me to a 3rd party and the rate quoted seemed high.

I'm new to financing in US so wondering if anyone can suggest a few financing options? My bank is one, but what other options do I have? Penfed?

I'm in California if that makes a difference.

Thanks!

ENDL3SS · 11-24-2021, 09:24 AM

Try and find a local credit union. They usually have the best rates.

DocL · 11-24-2021, 09:27 AM

PenFed is great. I've used them for my last five cars and the rates are good and the process is very easy. You can fill out application online or speak to a real person. You have open a saving account with them for a minimal amount.

Obviously you need to shop around, but my experience with them has been great. And I used them to buyout my M3 off my lease.

Pauldunlop13 · 11-24-2021, 09:37 AM

I am getting ready to buy mine out as well and will be using PenFed. It will fall under the Used Car loan rate which is 2.59%

White340 · 11-24-2021, 10:37 AM

DCU offers 1.99 for 65 Months right now. I'm in the same situation and this is the lowest I found so far.

itrocks4u · 11-24-2021, 01:04 PM

Is 1.99% to 2.59% considered low or high? (Comparing to 0.9% offered by BMW finance on BMW Select new car offer).

Pauldunlop13 · 11-24-2021, 01:10 PM

Quote:

Originally Posted by itrocks4u

Is 1.99% to 2.59% considered low or high? (Comparing to 0.9% offered by BMW finance on BMW Select new car offer).

I think they are both good (basically under 4% is good)

can't beat the new car incentives - either 0.0% - 0.9% or 1.9%

I always pick a long term loan - then pay it off early - this limits the total Interest I pay and I can control it (with the extra payments)

bayarea328xit · 11-24-2021, 02:58 PM

My credit union is currently offering 1.74% for 24-60 mo on a used car.

Pauldunlop13 · 11-24-2021, 03:07 PM

Quote:

Originally Posted by bayarea328xit

My credit union is currently offering 1.74% for 24-60 mo on a used car.

and the name of the CU is?

White340 · 11-24-2021, 03:59 PM

Quote:

Originally Posted by itrocks4u

Is 1.99% to 2.59% considered low or high? (Comparing to 0.9% offered by BMW finance on BMW Select new car offer).

1.99 is good without having direct deposit, military, teachers etc type occupations. A lot of them require you to live locally. Dcu said I need to deposit 5 bucks into a checking account and join one of their affiliates and even told me the cheapest one was 10 bucks to join.

So basically anyone with good credit can get 1.99 for 65 months for 15 bucks.

CYANiDE · 11-24-2021, 04:33 PM

Quote:

Originally Posted by White340

1.99 is good without having direct deposit, military, teachers etc type occupations. A lot of them require you to live locally. Dcu said I need to deposit 5 bucks into a checking account and join one of their affiliates and even told me the cheapest one was 10 bucks to join.

So basically anyone with good credit can get 1.99 for 65 months for 15 bucks.

You can actually be as low as 1.49 w/ direct deposit in DCU - but yes anyone can join.

White340 · 11-24-2021, 04:36 PM

Quote:

Originally Posted by CYANiDE

Quote:

Originally Posted by White340

1.99 is good without having direct deposit, military, teachers etc type occupations. A lot of them require you to live locally. Dcu said I need to deposit 5 bucks into a checking account and join one of their affiliates and even told me the cheapest one was 10 bucks to join.

So basically anyone with good credit can get 1.99 for 65 months for 15 bucks.

You can actually be as low as 1.49 w/ direct deposit in DCU - but yes anyone can join.

I asked about that. You need to deposit 100% of your salary into their checking. Not worth the .5% for me. You also need to have a certain number of transactions in the account.

CYANiDE · 11-24-2021, 04:40 PM

Quote:

Originally Posted by White340

Quote:

Originally Posted by CYANiDE

Quote:

Originally Posted by White340

1.99 is good without having direct deposit, military, teachers etc type occupations. A lot of them require you to live locally. Dcu said I need to deposit 5 bucks into a checking account and join one of their affiliates and even told me the cheapest one was 10 bucks to join.

So basically anyone with good credit can get 1.99 for 65 months for 15 bucks.

You can actually be as low as 1.49 w/ direct deposit in DCU - but yes anyone can join.

I asked about that. You need to deposit 100% of your salary into their checking. Not worth the .5% for me. You also need to have a certain number of transactions in the account.

They don't know how much you make so not sure how they'd know what 100% is. I have enough to cover the payment going into the account and not a problem.

icegrill · 11-24-2021, 04:45 PM

Wow! Some great % rates right now.

chrisrizzo · 07-19-2022, 07:53 AM

Quote:

Originally Posted by bayarea328xit

My credit union is currently offering 1.74% for 24-60 mo on a used car. I also did research on this site https://triceloans.com/1000-dollar-loans/ and found a lot of useful financial information.

Yes, it was a good interest rate. What about this year? Who knows what the interest rates are this year?

Keca10 · 07-19-2022, 09:20 AM

I got 1.99% for 72 months from a local CU, which I feel is best I could find. I recently bought my X3 lease.

Other lower rates by BMW (or other dealers) on new or used cars are paid for through pricing. Interest is built into price.

A few CUs will offer slightly lower rates but have some requirements to join. Also, I am seeing rates going up as obviously interest is going up in general. So, I don’t believe 2% rates will last.

CYANiDE · 07-19-2022, 09:33 AM

Quote:

Originally Posted by chrisrizzo

Yes, it was a good interest rate. What about this year? Who knows what the interest rates are this year?

I did 1.49% for my M4 when I bought out the lease in November with DCU. They are now 3.24% just 8 months later.

11-24-2021, 09:19 AM	#1
itrocks4u Colonel 615 Rep 2,418 Posts Drives: F80, F36, E90 Join Date: Aug 2011 Location: Bay Area iTrader: (3)	Financing options for lease buyout (US) Hello I reached out to BMW FS for financing option if I wanted to buyout my lease. They transferred me to a 3rd party and the rate quoted seemed high. I'm new to financing in US so wondering if anyone can suggest a few financing options? My bank is one, but what other options do I have? Penfed? I'm in California if that makes a difference. Thanks!
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11-24-2021, 09:24 AM	#2
ENDL3SS Captain 606 Rep 707 Posts Drives: E46/F15/GT4 Join Date: Oct 2013 Location: Dallas, TX iTrader: (11) Garage List 2005 BMW 330i ZHP [0.00] 2015 BMW X5 [0.00] 2018 BMW M3 [0.00]	Try and find a local credit union. They usually have the best rates.
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11-24-2021, 09:27 AM	#3
DocL Captain 1930 Rep 869 Posts Drives: 2018 M3 Join Date: Jan 2019 Location: Delray Beach iTrader: (2)	PenFed is great. I've used them for my last five cars and the rates are good and the process is very easy. You can fill out application online or speak to a real person. You have open a saving account with them for a minimal amount. Obviously you need to shop around, but my experience with them has been great. And I used them to buyout my M3 off my lease. __________________ 2018 F80 M3. YMB/BLK. ZCP. Three Pedals. "Education will never be as expensive as ignorance."
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11-24-2021, 09:37 AM	#4
Pauldunlop13 Second Lieutenant 425 Rep 286 Posts Drives: M4 Convertible Join Date: Sep 2017 Location: Colorado iTrader: (1)	I am getting ready to buy mine out as well and will be using PenFed. It will fall under the Used Car loan rate which is 2.59% __________________ 2019 YMB ZCP convertible with Dinan Exhaust 2011 Ducati Diavel Carbon Edition 2015 BSM M4 Convertible - 2018-2019 2016 228Xi - 2017-2018 2003 Acura RSX Type S 2003-2017
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11-24-2021, 10:37 AM	#5
White340 Lieutenant Colonel 1392 Rep 1,986 Posts Drives: 2018 M3 Comp / 2022 X5 45e Join Date: Dec 2015 Location: NYC iTrader: (3)	DCU offers 1.99 for 65 Months right now. I'm in the same situation and this is the lowest I found so far. __________________ 2022 X5 45e : AW/Tartufo 2018 M3 Competition : AW/SO 2016 340i xDrive : AW/CR (sold)
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11-24-2021, 01:04 PM	#6
itrocks4u Colonel 615 Rep 2,418 Posts Drives: F80, F36, E90 Join Date: Aug 2011 Location: Bay Area iTrader: (3)	Is 1.99% to 2.59% considered low or high? (Comparing to 0.9% offered by BMW finance on BMW Select new car offer).
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11-24-2021, 02:58 PM	#8
bayarea328xit Lieutenant 501 Rep 445 Posts Drives: 19 i3s; 07 328xit (sold) Join Date: Jun 2010 Location: Bay Area, CA iTrader: (0)	My credit union is currently offering 1.74% for 24-60 mo on a used car.
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11-24-2021, 04:45 PM	#14
icegrill Lieutenant Colonel 2078 Rep 1,780 Posts Drives: 2015 M3 Join Date: Jan 2018 Location: Oregon iTrader: (3)	Wow! Some great % rates right now.
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07-19-2022, 09:20 AM	#16
Keca10 Lieutenant 438 Rep 501 Posts Drives: ‘18 M3 ZCP / '20 X3 M40i Join Date: Mar 2014 Location: USA iTrader: (1)	I got 1.99% for 72 months from a local CU, which I feel is best I could find. I recently bought my X3 lease. Other lower rates by BMW (or other dealers) on new or used cars are paid for through pricing. Interest is built into price. A few CUs will offer slightly lower rates but have some requirements to join. Also, I am seeing rates going up as obviously interest is going up in general. So, I don’t believe 2% rates will last.
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