Prepayment Penalty?

DVDA · 11-14-2009, 01:46 PM

If i take the BMW Finance option with $2,500 Holiday Credit then make one payment then the next month pay the whole thing off are there any prepayment penalties?

Is there anywhere I can see the contracts to read through?

Cavman · 11-14-2009, 05:56 PM

I asked the same thing of my CA and he said that he believed there was a 6 month minimum and then you can pay it off.

IrvRobinson · 11-16-2009, 05:53 PM

You have to keep the contract 6 months ,then you can pay it off with no penalty.

DVDA · 11-17-2009, 12:21 AM

Quote:

Originally Posted by IrvRobinson

You have to keep the contract 6 months ,then you can pay it off with no penalty.

Thanks Irv, I will do my research see what comes out cheaper...taking the 2.5K credit and waiting 6 months to pay it off or just buying the car in full

rambalu80 · 11-17-2009, 07:00 PM

Let's say you financed your car for $45,000.00 and you pay of $44,400.00 in a week. You still have a $600.00 balance that you could pay off in the next 6 months. Will that work?

DVDA · 11-17-2009, 07:02 PM

Quote:

Originally Posted by rambalu80

Let's say you financed your car for $45,000.00 and you pay of $44,400.00 in a week. You still have a $600.00 balance that you could pay off in the next 6 months. Will that work?

Holy crap, that is a wise idea (less interest)...Irv any idea?

DVDA · 11-18-2009, 07:38 PM

Also Irv, if I have to pay the first 6 month is it interest only? or principle + interest?

Bora20 · 11-19-2009, 12:54 AM

Why don't you pay the minimum for 6 months, invest the cash, and in 6 months, pay it all off.

If you have a low interest rate on the car, just keep paying for it through financing. My total car is going to cost me less than $2000 for the 5 year term. I will make close to that back in investments on the $40K instead of owing the car outright.

There is nothing wrong with holding financing on the car and letting it run.

DVDA · 11-19-2009, 01:06 AM

Quote:

Originally Posted by Bora20

Why don't you pay the minimum for 6 months, invest the cash, and in 6 months, pay it all off.

If you have a low interest rate on the car, just keep paying for it through financing. My total car is going to cost me less than $2000 for the 5 year term. I will make close to that back in investments on the $40K instead of owing the car outright.

There is nothing wrong with holding financing on the car and letting it run.

Yes but I can finance the car with my home equity loan the interest is a lot lower

Cookiemonster · 11-19-2009, 12:05 PM

Quote:

Originally Posted by DVDA

Yes but I can finance the car with my home equity loan the interest is a lot lower

HAHAHAHA......Are you serious? That is Financial NO-NO!

DVDA · 11-19-2009, 02:27 PM

Quote:

Originally Posted by Cookiemonster

HAHAHAHA......Are you serious? That is Financial NO-NO!

Yes I am serious, why is that a financial no no?

I can make the minimum payment $900 or I can make a $5000 one month, $3000 next month etc depending income I have that month

Cookiemonster · 11-19-2009, 02:43 PM

Quote:

Originally Posted by DVDA

Yes I am serious, why is that a financial no no?

I can make the minimum payment $900 or I can make a $5000 one month, $3000 next month etc depending income I have that month

Maybe I misunderstood you. What I thought is that you would finance the car thru BMW and then pay if off in 6 months or so thru funds in your Home equity? Because the Home equity line has a cheaper interest rate and you can also take advantage of the 2500 bmw credit with out penilty? This would be bad because taking equity out of your home for a car is just bad. To many reasons to list. Ever hear the term ..."lose your house for a blouse"

DVDA · 11-19-2009, 06:55 PM

It is stupid if you dont have bonds and stock to sell to cover the cost you're taking from equity if your income runs dry

But I dont have that problem

Cookiemonster · 11-19-2009, 08:49 PM

Yeah if your stacked then sure.....wheel and deal to hearts content. Moving money around thru hoops can definetly work in your favor. Everything should be listed in the finance contract from BMW. I would call your dealer and ask to pick up a copy to read while you take a dump or something.

DVDA · 11-19-2009, 09:35 PM

Quote:

Originally Posted by Cookiemonster

Yeah if your stacked then sure.....wheel and deal to hearts content. Moving money around thru hoops can definetly work in your favor. Everything should be listed in the finance contract from BMW. I would call your dealer and ask to pick up a copy to read while you take a dump or something.

Emailed him today and asked him to email the contract to read over

DVDA · 11-23-2009, 11:53 PM

Ok what is the deal?!

My CA said there is no pre-payment penalty if I paid after 3 months, Irv said 6months....my contract under 4. Payment Schedule said "If I pay off this Contract early, I will not have to pay a penalty"

P.S. Sorry i dont know how to resize and keep the writing legible

dom55 · 11-25-2009, 02:09 PM

I spoke with my CA and he said you only have to finance a minimal amount and you only have to finance for 90 days. After 90 days you can pay off the loan with no penalty.

DVDA · 11-25-2009, 02:12 PM

Quote:

Originally Posted by dom55

I spoke with my CA and he said you only have to finance a minimal amount and you only have to finance for 90 days. After 90 days you can pay off the loan with no penalty.

BUT the contract says 0 days, no prepayment penalty

DougN · 12-02-2009, 09:29 AM

Interesting, I am doing the same thing (financing some of it for a few months to get the holiday credit) and my CA told me you had to keep the financing for 6 months or they take the credit back.

Is the contract you are looking at (that says 0 days) a standard BWMFS contract, or is there some language in there about the holiday credit? I would guess there would be a special addendum to the contract that would talk specifically about the holiday credit terms?

Cookiemonster · 12-03-2009, 02:42 PM

Quote:

Originally Posted by DougN

Interesting, I am doing the same thing (financing some of it for a few months to get the holiday credit) and my CA told me you had to keep the financing for 6 months or they take the credit back.

Is the contract you are looking at (that says 0 days) a standard BWMFS contract, or is there some language in there about the holiday credit? I would guess there would be a special addendum to the contract that would talk specifically about the holiday credit terms?

Probably a seperate form they make you fill out and sign that is an addendum to the contract.

oldkingdom · 12-08-2009, 08:27 AM

Minimum amount BMW FS will finance is $7500. Just looked into this the other day.

DVDA · 12-08-2009, 02:11 PM

Quote:

Originally Posted by oldkingdom

Minimum amount BMW FS will finance is $7500. Just looked into this the other day.

my CA told me 10K

11-14-2009, 01:46 PM	#1
DVDA Major 132 Rep 1,419 Posts Drives: women crazy Join Date: Nov 2008 Location: Tamarac, Florida iTrader: (0)	Prepayment Penalty? If i take the BMW Finance option with $2,500 Holiday Credit then make one payment then the next month pay the whole thing off are there any prepayment penalties? Is there anywhere I can see the contracts to read through? __________________ '10 E92 335i\|Le Mans Blue\|Black Dakota\|Light Burl Walnut Trim\|Premium\|///M-Sport\|Steptronic\|I-Drive\|Comfort Access\|
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11-14-2009, 05:56 PM	#2
Cavman Private 21 Rep 91 Posts Drives: 2015 BMW X5 35i M-Sport Join Date: Oct 2009 Location: Middle America iTrader: (0)	I believe there is a 6 month minimum I asked the same thing of my CA and he said that he believed there was a 6 month minimum and then you can pay it off.
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11-16-2009, 05:53 PM	#3
IrvRobinson Banned 39 Rep 731 Posts Drives: X3 Join Date: Jul 2006 Location: Chicago iTrader: (0)	You have to keep the contract 6 months ,then you can pay it off with no penalty.
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11-17-2009, 07:00 PM	#5
rambalu80 Major 82 Rep 1,245 Posts Drives: 2016 BMW 340i Join Date: Apr 2007 Location: Katy TX iTrader: (2) Garage List 2016 BMW 340i [0.00]	Let's say you financed your car for $45,000.00 and you pay of $44,400.00 in a week. You still have a $600.00 balance that you could pay off in the next 6 months. Will that work? __________________ 2016 BMW 340i 688 \| LCL5 \| 4FT \| ZMT \| ZTP \| ZDA \| ZLP \| 494 Formula One Pinnacle 30 Tint \| Brushed Aluminum Pedals
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11-18-2009, 07:38 PM	#7
DVDA Major 132 Rep 1,419 Posts Drives: women crazy Join Date: Nov 2008 Location: Tamarac, Florida iTrader: (0)	Also Irv, if I have to pay the first 6 month is it interest only? or principle + interest? __________________ '10 E92 335i\|Le Mans Blue\|Black Dakota\|Light Burl Walnut Trim\|Premium\|///M-Sport\|Steptronic\|I-Drive\|Comfort Access\|
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11-19-2009, 12:54 AM	#8
Bora20 Lieutenant 17 Rep 464 Posts Drives: 2007 BMW X3 3.0si M-Sport Join Date: May 2006 Location: Kamloops, BC, CAD iTrader: (0)	Why don't you pay the minimum for 6 months, invest the cash, and in 6 months, pay it all off. If you have a low interest rate on the car, just keep paying for it through financing. My total car is going to cost me less than $2000 for the 5 year term. I will make close to that back in investments on the $40K instead of owing the car outright. There is nothing wrong with holding financing on the car and letting it run. __________________ 2007 BMW X3 3.0si Titanium SilverBlack LeatherAutoPremiumM SportComfortActivityAssist & Bluetooth*
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11-19-2009, 06:55 PM	#13
DVDA Major 132 Rep 1,419 Posts Drives: women crazy Join Date: Nov 2008 Location: Tamarac, Florida iTrader: (0)	It is stupid if you dont have bonds and stock to sell to cover the cost you're taking from equity if your income runs dry But I dont have that problem __________________ '10 E92 335i\|Le Mans Blue\|Black Dakota\|Light Burl Walnut Trim\|Premium\|///M-Sport\|Steptronic\|I-Drive\|Comfort Access\|
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11-19-2009, 08:49 PM	#14
Cookiemonster Captain 17 Rep 791 Posts Drives: 2010 335XI e92 Join Date: Apr 2007 Location: Jupiter iTrader: (2)	Yeah if your stacked then sure.....wheel and deal to hearts content. Moving money around thru hoops can definetly work in your favor. Everything should be listed in the finance contract from BMW. I would call your dealer and ask to pick up a copy to read while you take a dump or something. __________________ 2007 335I sedan (retired) 2010 335xi coupe
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11-23-2009, 11:53 PM	#16
DVDA Major 132 Rep 1,419 Posts Drives: women crazy Join Date: Nov 2008 Location: Tamarac, Florida iTrader: (0)	Ok what is the deal?! My CA said there is no pre-payment penalty if I paid after 3 months, Irv said 6months....my contract under 4. Payment Schedule said "If I pay off this Contract early, I will not have to pay a penalty" P.S. Sorry i dont know how to resize and keep the writing legible Attached Images __________________ '10 E92 335i\|Le Mans Blue\|Black Dakota\|Light Burl Walnut Trim\|Premium\|///M-Sport\|Steptronic\|I-Drive\|Comfort Access\|
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11-25-2009, 02:09 PM	#17
dom55 Lieutenant 36 Rep 407 Posts Drives: 2016 X5M Join Date: Jun 2007 Location: Westchester, NY iTrader: (4)	I spoke with my CA and he said you only have to finance a minimal amount and you only have to finance for 90 days. After 90 days you can pay off the loan with no penalty. __________________ 2016 X5M Silverstone on Silverstone
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12-02-2009, 09:29 AM	#19
DougN Private 2 Rep 69 Posts Drives: 2010 E93 Join Date: Nov 2009 Location: Atlanta, GA iTrader: (0)	Interesting, I am doing the same thing (financing some of it for a few months to get the holiday credit) and my CA told me you had to keep the financing for 6 months or they take the credit back. Is the contract you are looking at (that says 0 days) a standard BWMFS contract, or is there some language in there about the holiday credit? I would guess there would be a special addendum to the contract that would talk specifically about the holiday credit terms? __________________ Cheers, Doug _______________________________________________ 2010 E93 Titanium\|Black\|Aluminum 2001 Audi A4 1.8T Quattro/1973 Datsun 240Z/1966 MGB
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12-08-2009, 08:27 AM	#21
oldkingdom Executive Producer 22 Rep 370 Posts Drives: '15 F82 M4 (YAS/Silverstone) Join Date: Jan 2006 Location: Los Angeles iTrader: (0) Garage List 2015 BMW M4 [0.00] 2012 BMW Z4 35is [8.00] 2007 e92 335i [0.00]	Minimum amount BMW FS will finance is $7500. Just looked into this the other day. __________________ J Ryan RETIRED: '86 e30 325e, '89 e30 M3, '02 330ci, '05 330ci ZHP, '07 e92 335i, '07 e92 335i, '12 e89 Z4 35is, '5 f82 M4 CURRENT: Porsche 911s
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