[OceanAve]

Hi, I spoke with my long time BMW dealer (5 previous cars purchased with him, and 8 from the dealership itself) about the advertised finance rate of 2.99% for new car purchase. Note, his specific dealership advertised this promotion, as well as BMW, NA. He gave me a whole song and dance about how it is unfair advertising, as the 2.99% is BMW's own cost and they dealership adds 1% to the customer to bring it to 3.99%. I was very disappointed in what seemed as a bait and switch tactic, especially with someone I've dealt with over many years. I just ask for transparency. Have people had similar recent experiences with finance rate promotions? Thank you

[Westside Guy]

Originally Posted by OceanAve

Hi, I spoke with my long time BMW dealer (5 previous cars purchased with him, and 8 from the dealership itself) about the advertised finance rate of 2.99% for new car purchase. Note, his specific dealership advertised this promotion, as well as BMW, NA. He gave me a whole song and dance about how it is unfair advertising, as the 2.99% is BMW's own cost and they dealership adds 1% to the customer to bring it to 3.99%. I was very disappointed in what seemed as a bait and switch tactic, especially with someone I've dealt with over many years. I just ask for transparency. Have people had similar recent experiences with finance rate promotions? Thank you

When I purchased my 2022 Z4 M40i the nationally advertised rate for financing on that model was an amazing .9% which in my opinion was a once in a lifetime offer. I jumped on it, ordered my car which they obtained from another dealer.

When the car arrived a few days later, I went to sign the papers and the finance manager at my dealer tried to add an extra point and charge me 1.9%. I told her what the advertised rate was on the BMWNA website and had her go to their webpage. I made it very clear that I would walk if she didn't honor that .9% rate and she finally gave it to me.

If there are any other dealers near you I would definitely contact them and get a written commitment about the rate they will charge and also consider using a broker as many people have saved a great deal of money using them on their new car purchases.

[OceanAve]

Thank you..

[Westside Guy]

Originally Posted by OceanAve

Thank you..

Just remember that dealers always try to add on fees or sell you some additional coverage when you meet with their finance managers.

It can turn into a poker game and you need to bluff and threaten to walk. In fact, years ago I did walk out on a FM and I received a phone call from my salesman to return about an hour later and received what I was originally quoted.

[zx10guy]

That's some serious BS there. As stated by Westside Guy, I'd hold firm to the advertised 2.99% I went on BMW USA's website and grabbed the financing promo terms for one of the cars they're offering the 2.99% on. Here are the terms verbatim:

"Through July 31, 2025, 2.99% APR financing for up to 60 months on new 2025 BMW X3 30 xDrive model is available from participating BMW dealers to well qualified customers who meet BMW Financial Services NA, LLC credit requirements. For example, with $0.00 down payment and 2.99% APR, a retail installment contract on a 2025 BMW X3 30 xDrive with MSRP of $55,725.00 may be repaid in 24 monthly installments of $2,394.88 or may be repaid in 60 monthly installments of $1,001.06. MSRP excludes tax, title, and license. Not all customers will qualify for down payment waiver or lowest rate. Other rates and payment terms available. Applicable Credits are credits against the MSRP of the vehicle purchased and available to customers who finance through BMW Financial Services NA, LLC. All credits valid through July 31, 2025. All offers are subject to dealer participation. Must take delivery by July 31, 2025. Visit your authorized BMW Center for important details."

No where does it state the dealer may add in an additional APR. Determination of getting the promo rate is solely based on BMW Financial underwriting review of your credit worthiness.

I haven't financed my 1er with BMW Financial because at the time my credit union had a rate that was untouchable. But I did finance two BMW motorcycles with BMW Financial. The first one was at a promo rate that was the best around with no dealer tack on. The second one was a APR match to what my credit union was offering. Both of the purchases were through the same dealer.

If it were me also, I'd contact both BMW Financial and BMW North America and file a complaint against this dealer.

[RockCrusher]

Last November I financed $20,000 when I purchased my 2024 M8. I didn't have to finance I could written the check for the full purchase price.

But by financing I was being given an additional $9000 (!) discount on the car.

This $9000 combined with the $2000 loyalty discount and the just plain old discount of $24,250 (!!) this brought the price of the car down from $143,885 to $108,635.

The loan interest was 3.99%. It may have been 2.99% with an extra 1% tacked on by the dealer. I hadn't researched BMW interest rates as I had no intention of financing the car.

3.99% or 2.99% made no difference to me. All I had to do was make 3 monthly payments of just under $460 each before paying the loan off. I was told by the finance guy at the dealer if I didn't make 3 payments the dealer would *not* get the $9000 from BMW for the $9000 discount the dealer gave me.

I made the 3 payments -- and paid around $180 in interest -- then after making the 3rd payment in March I mailed a cashier's check for the pay off amount to BMW Financial. Not long after I received the title with a signature releasing any lien on the vehicle.

[afadeev]

Originally Posted by OceanAve

Hi, I spoke with my long time BMW dealer (5 previous cars purchased with him, and 8 from the dealership itself) about the advertised finance rate of 2.99% for new car purchase. Note, his specific dealership advertised this promotion, as well as BMW, NA. He gave me a whole song and dance about how it is unfair advertising, as the 2.99% is BMW's own cost and they dealership adds 1% to the customer to bring it to 3.99%. I was very disappointed in what seemed as a bait and switch tactic, especially with someone I've dealt with over many years. I just ask for transparency. Have people had similar recent experiences with finance rate promotions?

Unfortuantely, this is a common dealeship rip-off tactic - marking up finance rates.
Sadly, BMW NA enables this practice by allowing the dealers to mark-up the rates.

You, the customer, can refuse to play this shell game and insist on paying the advertised finance rate. The dealer will howl, and eventually give you the advertised rate w/o markups.

More hints here:

a

P.S.: This is not the only "game" the dealer will try to play with you. My personal favorite is 4 Square...

[Westside Guy]

Originally Posted by RockCrusher

Last November I financed $20,000 when I purchased my 2024 M8. I didn't have to finance I could written the check for the full purchase price.

But by financing I was being given an additional $9000 (!) discount on the car.

This $9000 combined with the $2000 loyalty discount and the just plain old discount of $24,250 (!!) this brought the price of the car down from $143,885 to $108,635.

The loan interest was 3.99%. It may have been 2.99% with an extra 1% tacked on by the dealer. I hadn't researched BMW interest rates as I had no intention of financing the car.

3.99% or 2.99% made no difference to me. All I had to do was make 3 monthly payments of just under $460 each before paying the loan off. I was told by the finance guy at the dealer if I didn't make 3 payments the dealer would *not* get the $9000 from BMW for the $9000 discount the dealer gave me.

I made the 3 payments -- and paid around $180 in interest -- then after making the 3rd payment in March I mailed a cashier's check for the pay off amount to BMW Financial. Not long after I received the title with a signature releasing any lien on the vehicle.

Because of that additional $9,000 incentive from BMWNA, your situation is definitely different than the normal scenario where the finance manager at a dealer is trying to ripoff customers for that additional point. If I had been in your shoes, I would have done the exact same thing in order to save an additional $9,000 on a purchase. I applaud you on your fabulous deal which is one of the best I have ever read about for a new car purchase on Bimmerpost!

[zx10guy]

Originally Posted by Westside Guy

Because of that additional $9,000 incentive from BMWNA, your situation is definitely different than the normal scenario where the finance manager at a dealer is trying to ripoff customers for that additional point. If I had been in your shoes, I would have done the exact same thing in order to save an additional $9,000 on a purchase. I applaud you on your fabulous deal which is one of the best I have ever read about for a new car purchase on Bimmerpost!

This is the exact negotiating tactic I use with dealerships. It's either more money off or an accessory thrown in if I go with their in house financing. You scratch my back and I'll scratch yours.

When I bought my 1er, there was an incentive going for my car that the sales guy wouldn't honor. I kept pushing but he wouldn't budge. But I lead him to believe I was going to go with the BMW Select Financing (I think that's what it's called with a balloon payment in the end). I had already lined up credit union financing and had the check in hand. When I went in to finalize the deal, I made one last effort for something out of him. Nope. So when we got to the financing part, he pushed the paper in front of me and I said not so fast. I dropped the credit union check on the desk in front of him. The look of him being pissed was priceless. Needless to say, they attempted to beat the terms my credit union offered and they couldn't come close. Had he not been such a dick, I would have gone with their financing and then refinanced later with my credit union.

Contrast this to my experience buying my 2022 S1000RR. Negotiated the price and then was pushing for something more. They got BMW Financial to match the APR my credit union offered. But I still wanted something a bit more. So I asked for an accessory to go on my bike. Sales guy went off to talk to the sales manager and came back. Asked if we give this accessory to you for free, you'll go with our financing? I said yes. He said done.

As you stated, the scenario discussed here by OP is only beneficial to the dealer and is down right sleazy.

[tturedraider]

As pretty much everyone has said this is an option BMWFS gives dealers to screw the unsuspecting and uninformed. The vast majority of the time if you stand your ground and let them know adding anything to the advertised rate will cost them the sale they will back down.

[ojt]

Same same over here in Italy. The BMW official rate for iX1/iX2 here has been 2.49% for quite some time now. Yet when I called dealers I got quoted up to 5%. I chose to ignore the worst offenders and “educate” the rest.

Some of them were just plain ignorant, while others seemed like scammers. Kinda worrying for a lot of buyers who may not have the means / time to stay informed and blindly trust the dealers.

[tturedraider]

Originally Posted by ojt

Same same over here in Italy. The BMW official rate for iX1/iX2 here has been 2.49% for quite some time now. Yet when I called dealers I got quoted up to 5%. I chose to ignore the worst offenders and “educate” the rest.

Some of them were just plain ignorant, while others seemed like scammers. Kinda worrying for a lot of buyers who may not have the means / time to stay informed and blindly trust the dealers.

You may have heard this business principle in the U.S. - Laissez-faire. And to go along with that we say, “let the buyer beware”. We put a lot of onus on consumers to educate themselves and not to rely on the seller to fully share all of the available information. Especially information that would diminish their ability to make the maximum profit. Unfortunately, most buyers are very lazy and take whatever a seller tells them as gospel and don’t raise questions.

[NickyC]

Whenever financing a vehicle at a dealership, always ask for their buy rate concerning financing. They are legally obligated to tell you the rate, and you should ONLY pay their rate and not an extra 1% or whatever they try to tack on which is 100% profit for the dealership. Like Westside Guy, I purchased my G82 when they first came out and BMW was offering 0.99% for 60 months. I usually shy away from all financing as I absolutely hate paying interest, but 0.99% is essentially free money so I took it. I spoke with two dealers at the time, and both tried to get me to sign at 1.99% before I told them about the 0.99% advertised on BMW NA. They grudgingly then both agreed to 0.99% which is what I signed when I purchased my G82.

Always ask for the buy rate when financing from a dealer. Always.

[Westside Guy]

Originally Posted by NickyC

0.99% is essentially free money so I took it.

Free money is exactly right!!!

Originally I was going to pay all cash for my G29 but once I saw that .9% rate I financed about $35k of the purchase with BMWFS and invested that money instead.

[RockCrusher]

Originally Posted by Westside Guy

Because of that additional $9,000 incentive from BMWNA, your situation is definitely different than the normal scenario where the finance manager at a dealer is trying to ripoff customers for that additional point. If I had been in your shoes, I would have done the exact same thing in order to save an additional $9,000 on a purchase. I applaud you on your fabulous deal which is one of the best I have ever read about for a new car purchase on Bimmerpost!

To be sure I was very fortunate to stumble into this deal. And stumbled I did. I didn't negotiate the deal.

[Westside Guy]

Originally Posted by RockCrusher

To be sure I was very fortunate to stumble into this deal. And stumbled I did. I didn't negotiate the deal.

Life is all timing!!!

[Ecsta]

In Canada when I just bought (very good credit), the finance guy was unwilling to budge. Best they could offer on a CPO was 5.99% and the best I could get from my bank on a secured line of credit was 5.95%.

[jsadams123]

Wow! That is just shady. They are trying to screw over the unsuspecting. Back in 2017, I got my X1 and it was 0.9%, which was great! Fortunately, they didn't try to raise the interest. If they did that, I would never go back to that dealer.

[KevinC]

I went through this BS in 2021 with my M2 Comp. Ordered the car, 0.9% finance rate promo from BMWUSA in play, dealer says we have to run your credit now and if approved we can then lock that promo for 90 days while car is being built. Fine.

Show up for the car 3 months later, F&I criminal attempts to jack it to 1.9%. I point out that I'd been pre-approved and LOCKED for the 0.9% promo, he then claims it's "no longer being offered" (which was a lie, it was STILL in effect when he told me that). I said I don't care, that was the advertised rate, I was approved for it, take the point off. He did.

So here's what's going on here: The BMW financing that the dealers sell can be marked up anywhere from not at all to up to 1 point, at the dealer's discretion. And that's fine for a non-promo rate - if I walk in the door and the guy offers me 5.5% and I take it, it really doesn't matter what his cost is - it's on me to have shopped and have a better rate if something better exists. BUT on these advertised promo rates? They can't ethically mark those up at all, and probably not legally either. He also kited the agreed-on top line price until I caught it, and some other shenanigans. Will never buy from those crooks again.