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      09-10-2018, 09:17 PM   #1
Gsv77
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BMW Financial Incentive

Have a friend that is about to buy a 2018 M4 convertible in Texas and is getting a dealer discount plus $3,000 BMW Financial Incentive and $1,500 Loyalty Incentive (owns a BMW now).

The offer is 4.15% for 60 mo. and the dealer claims they won't match a lower credit union price and the buyer has to keep the loan for 3 months or lose the incentive.

Does that seem right?
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      09-10-2018, 09:23 PM   #2
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it could be right depending on the credit. if he has excellent credit it will be tier 1. Buyers rate is 2.5, dealers typically add a point so you are looking at around 3.5 however tell him to shop around till one of the dealers give him 2.5-3.5%
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      09-10-2018, 09:29 PM   #3
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Originally Posted by NIKEAUTOMATIC View Post
it could be right depending on the credit. if he has excellent credit it will be tier 1. Buyers rate is 2.5, dealers typically add a point so you are looking at around 3.5 however tell him to shop around till one of the dealers give him 2.5-3.5%
Thank you.

This $3,000 BMW Financial Credit just states its requirements as "Retail Select APR Credit can be used in conjunction with vehicles that utilize Retail or Select financing through BMW FS."

It started 9/4/18 and ends 10/1/18.

I just find it hard to believe if you pay it off or refi it a few weeks later that BMW FS will claw back $3,000?
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      09-10-2018, 09:45 PM   #4
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Taking back the incentive seems unlikely. That wasn't written into my contract(Texas dealership). The dealership doesn't get their bonus though when you refinance early. It wouldn't hurt to make the first 3 months if there is intent on establishing a good long term relationship. Otherwise the rate is as listed on the BMW FS website so that seems right.
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      09-11-2018, 10:45 AM   #5
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Quote:
Originally Posted by Gsv77 View Post
Thank you.

This $3,000 BMW Financial Credit just states its requirements as "Retail Select APR Credit can be used in conjunction with vehicles that utilize Retail or Select financing through BMW FS."

It started 9/4/18 and ends 10/1/18.

I just find it hard to believe if you pay it off or refi it a few weeks later that BMW FS will claw back $3,000?
They will "claw back that $3000" from the dealer, not from your friend... but the dealer WILL know, and likely remember, so its bad form to pay it off a few weeks after financing.

3 months is about the leadtime for the dealer to not get charged back.

I have no incite into the BMW buy rates on financing.
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      09-13-2018, 09:09 PM   #6
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6 payments is the term where penalties end for dealers via BMW FS. So just refinance at 7 months and 1 day (assuming 30 days to 1st payment) if you care about the dealership/people you are dealing with. No matter what you’ll still end up keeping at least $2k of the $3k rebate in the form of a lower payoff amount at refinance time (assuming it costs you $1k (it should be less) in interest during the 1st 7 months of your loan.
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      09-14-2018, 05:19 PM   #7
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When I bought my 2016 M4 and did Euro Delivery, I had considered leasing, but BMW FS was offering 0.9% which I thought was a no-brainer, so I financed instead. Almost as close to free financing as you can get.

Two years later, the finance rate is up to over 4%, so when we did Euro Delivery for my wife's 2018 M3 in July we had little choice but to go with a 4.09% rate from BMW FS. The dealer actually felt bad about the much higher rate, but there wasn't anything he could do. He is fully aware that when the car comes in later this month or early October that we are going to refinance with a local CU, probably around 3.5%, maybe a few tenths less.

Given that the incentive is tied to keeping the BMW FS loan for 3 months, it doesn't seem so bad to just wait 3 months and refinance at a lower rate.
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