Financing and Rate Cut

PBmadness · 01-23-2008, 02:29 PM

I recently put in an order for an '08 E92 and am awaiting confirmation on an ED date (April). This is my first vehicle purchase. I decided to finance it so it will also be my first time applying for any type of loan.

My dealer is able to lock me in at 4.9% with BMWFS, but with the Fed's emergency rate cut of 75 bps yesterday and the anticipated 50 bps rate cut next week, we should be able to expect better auto loan rates in the near future. How long after a rate cut do such loans take to adjust?

When will the dealer expect me to have made a decision on if I will be financing through BMWFS, or a credit union such as PenFed?

For anyone who has financed through BMWFS or PenFed, are there prepayment penalties?

PoweredByRICE · 01-23-2008, 02:39 PM

There is no prepayment penalties. My dealer told me BMW usually waits longer to lower their rates after the feds do..with that said I contacted BMW and they told me I could refinance if they lower the rates since I just locked in 4 days ago.

John 070 · 01-23-2008, 06:36 PM

The prime already went down .75% as well, and when I checked it looked as if mortgage rates retreated about .5% (that is .005). I dunno how closely auto loans are correlated with the prime, I rather doubt that they are, but I've only had 2 auto loans before. The 4.9% on a BMW is what's called an incentive, which is now needed to push the cars out the door. While you're going through BMWFS you should get the free day in SC at the driving school and 2 nights hotel for free. I just got a thing in the mail 2 days ago, but as luck would have it, I'm in no position to buy another BMW at this time....

01-23-2008, 02:29 PM	#1
PBmadness New Member 9 Rep 26 Posts Drives: Red Wagon Join Date: Jan 2008 Location: Bay Area, CA iTrader: (0)	Financing and Rate Cut I recently put in an order for an '08 E92 and am awaiting confirmation on an ED date (April). This is my first vehicle purchase. I decided to finance it so it will also be my first time applying for any type of loan. My dealer is able to lock me in at 4.9% with BMWFS, but with the Fed's emergency rate cut of 75 bps yesterday and the anticipated 50 bps rate cut next week, we should be able to expect better auto loan rates in the near future. How long after a rate cut do such loans take to adjust? When will the dealer expect me to have made a decision on if I will be financing through BMWFS, or a credit union such as PenFed? For anyone who has financed through BMWFS or PenFed, are there prepayment penalties?
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01-23-2008, 02:39 PM	#2
PoweredByRICE Elitist 4 Rep 114 Posts Drives: 2011 335 Xi Coupe Join Date: Apr 2007 Location: Maine iTrader: (1)	There is no prepayment penalties. My dealer told me BMW usually waits longer to lower their rates after the feds do..with that said I contacted BMW and they told me I could refinance if they lower the rates since I just locked in 4 days ago.
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01-23-2008, 06:36 PM	#3
John 070 Lieutenant General 1725 Rep 14,825 Posts Drives: 335i cpe Join Date: Oct 2006 Location: ZSP/ZPP/ZCW iTrader: (0)	The prime already went down .75% as well, and when I checked it looked as if mortgage rates retreated about .5% (that is .005). I dunno how closely auto loans are correlated with the prime, I rather doubt that they are, but I've only had 2 auto loans before. The 4.9% on a BMW is what's called an incentive, which is now needed to push the cars out the door. While you're going through BMWFS you should get the free day in SC at the driving school and 2 nights hotel for free. I just got a thing in the mail 2 days ago, but as luck would have it, I'm in no position to buy another BMW at this time....
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