[jsf721]

Can someone who knows tell me if I can re-fi my lease with my credit union?

I can get almost 2 points lower interest on a 36 month re-fi.

They have my Jeep (financed) and had my Subaru (Sold)

BMW wants 4.99% and did not seem negotiable at all.

-----------------
Lastly the oil and wear item service runs out at 36K/4 years. I am at 36K, I do not see any maintenance packages that make sense.

I have 7/70K mechanical breakdown form Geico and I guess I will suck up the maintenance

[peteinpa]

I don't see why not, you are essentially buying the car which is your prerogative. How many more months are left on your lease?

[AmooManiak]

Shouldn't be an issue unless it's prohibited the contract. Shouldn't be, but dealerships are coming up with all kinds of BS on new leases now due to the market.

Ask BMW to at least match it.

[NVRfollo]

You can finance from any source for your lease buyout. Penfed is at 2.89% for 36 months. Very easy to become a member. Just open an savings account with $100 deposit. An account with them might come in handy later on when they offer BMW bonus cash again

[HerkHealer]

Originally Posted by NVRfollo

You can finance from any source for your lease buyout. Penfed is at 2.89% for 36 months. Very easy to become a member. Just open an savings account with $100 deposit. An account with them might come in handy later on when they offer BMW bonus cash again

+1

I've been a Penfed member for over 20 years. Had several cars financed with them. I even refi'd my home loan going from a 30 to 15 year.
They are fantastic and have the best rates out there. Go for it !

[jsf721]

Lease is up 6/19

Originally Posted by peteinpa

I don't see why not, you are essentially buying the car which is your prerogative. How many more months are left on your lease?

[jsf721]

I think they want my car or don’t want me to sell it.

Originally Posted by AmooManiak

Shouldn't be an issue unless it's prohibited the contract. Shouldn't be, but dealerships are coming up with all kinds of BS on new leases now due to the market.

Ask BMW to at least match it.

[NVRfollo]

I just bought out my lease at the beginning of the year and then flipped it. The only restriction BMWFS has is that a 3rd party cannot buyout your lease directly from them. You can buy it out yourself and then sell it to the 3rd party.

[admranger]

If you really want to annoy the dealer, go ahead and get the 4.99% loan with them and then go to your credit union the next day and pay it off w/their loan at the lower rate.

I always give the dealer a chance to match rates, etc. but if they can't they can't. They won't like it but where your money comes from to buy out your car is not their concern. You have a contract to purchase from them for $xx,xxx.xx -- they can't change the terms of the contract w/o both parties agreeing to it. You're under no obligation to agree to a contract change that is not in your best interest (or at least, fair).

GL with going forward. It seems to always be something at dealerships...nothing is straightforward (with a few exceptions).

[NGT2]

Originally Posted by admranger

If you really want to annoy the dealer, go ahead and get the 4.99% loan with them and then go to your credit union the next day and pay it off w/their loan at the lower rate.

I always give the dealer a chance to match rates, etc. but if they can't they can't. They won't like it but where your money comes from to buy out your car is not their concern. You have a contract to purchase from them for $xx,xxx.xx -- they can't change the terms of the contract w/o both parties agreeing to it. You're under no obligation to agree to a contract change that is not in your best interest (or at least, fair).

GL with going forward. It seems to always be something at dealerships...nothing is straightforward (with a few exceptions).

This is exactly what I'd do.

[jsf721]

Thanks for the great idea.

Originally Posted by admranger

If you really want to annoy the dealer, go ahead and get the 4.99% loan with them and then go to your credit union the next day and pay it off w/their loan at the lower rate.

I always give the dealer a chance to match rates, etc. but if they can't they can't. They won't like it but where your money comes from to buy out your car is not their concern. You have a contract to purchase from them for $xx,xxx.xx -- they can't change the terms of the contract w/o both parties agreeing to it. You're under no obligation to agree to a contract change that is not in your best interest (or at least, fair).

GL with going forward. It seems to always be something at dealerships...nothing is straightforward (with a few exceptions).

[Joe-BMW33]

I'm going from memory here, but worth looking into. I bought my Infiniti QX60 off lease and I had to go through infiniti financial for the loan because no one else would work with them to finance the purchase from them. It had something to do with how long it took Infiniti to get them the title or releasing the title?. I just refinanced shortly after with my local credit union.

Unrelated, if you don't finance through BMW Financial, you won't be eligible for any loyalty incentives on your next BMW. It's total bullshit, but worth pointing out. It may be worth having them write it up and then refinancing. The loyalty incentives can be meaningful.

[NGT2]

Originally Posted by Joe-BMW33

I'm going from memory here, but worth looking into. I bought my Infiniti QX60 off lease and I had to go through infiniti financial for the loan because no one else would work with them to finance the purchase from them. It had something to do with how long it took Infiniti to get them the title or releasing the title?. I just refinanced shortly after with my local credit union.

Unrelated, if you don't finance through BMW Financial, you won't be eligible for any loyalty incentives on your next BMW. It's total bullshit, but worth pointing out. It may be worth having them write it up and then refinancing. The loyalty incentives can be meaningful.

Well that sucks to hear. Does that apply to any BMW purchase? When I got my CPO in December from a BMW dealer, I asked about some specials going on with BMW Financing and they said they weren't even using them because they'd get a better rate elsewhere.

[Joe-BMW33]

Originally Posted by NGT2

Well that sucks to hear. Does that apply to any BMW purchase? When I got my CPO in December from a BMW dealer, I asked about some specials going on with BMW Financing and they said they weren't even using them because they'd get a better rate elsewhere.

When I bought my CPO, he told me if I didn't go through BMW Financial I would not be eligible for loyalty incentives. That had Bank of America as an option and it was a point less, so I went with it.

[admranger]

2% lower loan on a $30k car will pay for a lot of "loyalty" credit...

I'm not sure we'll ever see the good old days of massive loyalty credits anytime soon (or ever). Car makers have figured out that withholding supply, willingly (I'm looking at you, Porsche) or unwillingly due to chip shortages, etc, makes them more money. No need to expand plants or supplier capacity, etc.

[NGT2]

Originally Posted by admranger

2% lower loan on a $30k car will pay for a lot of "loyalty" credit...

I'm not sure we'll ever see the good old days of massive loyalty credits anytime soon (or ever). Car makers have figured out that withholding supply, willingly (I'm looking at you, Porsche) or unwillingly due to chip shortages, etc, makes them more money. No need to expand plants or supplier capacity, etc.

There's always someone willing to go win on volume.

[admranger]

Originally Posted by NGT2

There's always someone willing to go win on volume.

BMW controls the allocations.

[NGT2]

Originally Posted by admranger

BMW controls the allocations.

Yes I know. Sorry, maybe I wasn't specific enough. When I said there is always someone willing to play volume, I meant the manufacturers. Not the dealers.

Actually, I talked to the guy that owns our local Lexus dealer while playing golf. I asked how he liked the current setup. He said it's awesome for him. No inventory holdover costs and obviously they can charge full price. He said the manufacturers are better off when they can make more cars, because they are all bought by dealers. It's the dealers that get stuck with inventory, not BMW. He said the part that he hates is not being able to make the sale when someone has an immediate need (car totaled, stolen, etc).

A lot will change with dealers as we go electric. The service aspect will be completely different in 15 years. But I do think we will get back to dealers having standing inventory of basic models.

[AnthonyVincent]

A couple points I would like to add here for what it is worth....

When I purchased my 2021 540i M Sport back in June of 2021, BMW was offering 0.9% financing. I found the exact car I wanted at a BMW dealership 60 miles from me. Called them and put a hold on the car. Before I even stepped foot in the dealership, I applied for the financing directly from the BMW Financial website. I recall the online application asks for the model and which dealer. Got approved, went to the dealer and they still wanted me to fill out a paper application while there. After negotiating the price for the car, I absolutely refused to fill out that application. They had my approval in the system already from BMW Financial without being privy to my social security number. I paid the down payment, tax, registration and title fees with a personal check. Drove the car home that day.

I learned my lesson in the past with other dealers, specifically Lexus. Dealers will run your credit through multiple banks they are "in partner with" because the dealers don't make commission or shall I say, kickbacks, on a Lexus Financial or BMW Financial loan. Then you have 5 or so hard inquiries on your credit report which will bring down the score. It is hard to beat a 0.9% rate but even if they match, the dealer will try to convince you to use their bank, even by lowering the price of the car. Times are different now since it is a "sellers" market with respect to cars or anything. I'm sure the interest rates of 0.9% are long gone as well. Also, you don't want your social security number and other personal info other than name, address floating around on a paper application at the dealership. Not to digress off topic, but that is true in general. If your doctor's office asks for SS#, say no.

The other point to watch out for is bogus dealer fees when buying out a lease. Not sure if this is just a Florida thing which is where I reside, however it is all over the local news. Dealers are charging nonsense certification, prep and processing fees for lease buyouts. Unless it is in your lease contract, that is illegal. With the high demand for used cars, dealers don't want you to buy out your lease. They want the car back.

[steve090619]

Originally Posted by jsf721

Can someone who knows tell me if I can re-fi my lease with my credit union?

I can get almost 2 points lower interest on a 36 month re-fi.

They have my Jeep (financed) and had my Subaru (Sold)

BMW wants 4.99% and did not seem negotiable at all.

-----------------
Lastly the oil and wear item service runs out at 36K/4 years. I am at 36K, I do not see any maintenance packages that make sense.

I have 7/70K mechanical breakdown form Geico and I guess I will suck up the maintenance

Originally Posted by jsf721

Can someone who knows tell me if I can re-fi my lease with my credit union?

I can get almost 2 points lower interest on a 36 month re-fi.

They have my Jeep (financed) and had my Subaru (Sold)

BMW wants 4.99% and did not seem negotiable at all.

-----------------
Lastly the oil and wear item service runs out at 36K/4 years. I am at 36K, I do not see any maintenance packages that make sense.

I have 7/70K mechanical breakdown form Geico and I guess I will suck up the maintenance

I have 3 coworkers who bought out their lease recently and used a credit union bank. They were not BMW , but that doesn't matter. It's in your lease the buyout number. It doesn't say what bank and they can't charge you extra fees. The lease you signed is a legal document and they can't change it now because they are unhappy with terms they wrote up.

Dealerships ripping people off for years, payback is a bitch. I loved $1000 in damage fees they always found.