[BMWCCA1]

I think you all are ignoring banking laws which, though they may vary by state, require contracts which clearly state the interest on the loans. You can't get around this in any financing scenario when you are making payments over time. It is the law.

Of course leasing uses a money-factor, but a Google search can tell you how it relates to interest. But, since you don't really own the car, you can call it a "rental" fee is you're really looking for a way to circumvent ridiculous religious doctrine.

And I'm pretty sure that God invented Math.

[vreihen16]

Originally Posted by BMWCCA1

And I'm pretty sure that God invented Math.

...and the Arabic culture gave us the mathematical concept of zero, IIRC.....

[Darth One]

Originally Posted by BMWCCA1

I think you all are ignoring banking laws which, though they may vary by state, require contracts which clearly state the interest on the loans. You can't get around this in any financing scenario when you are making payments over time. It is the law.

This is a good point and it's actually federal law (the Truth in Lending Act).

That LARIBA site/model tries to get around it by saying there really is no interest, I'm just buying the asset and reselling to you at a higher price, in installments. It's very transparent that they're trying to create a loophole - especially since they still market their products as "financing" - but I don't know if regulators are calling BS or looking the other way on this.

[Darth One]

Originally Posted by Mosaud1998

I contacted them. They don't work with car loans unfortunately.

That's too bad. Their site has an application for car financing, so i thought they could help you.

[///MPhatic]

Originally Posted by Mosaud1998

It's somewhat against our religion to take loans out with interest rates.

I thought this was a joke at first, I've used that line before, and I'm pure atheist. So forgive me for asking, but this is true, your religion doesn't allow you to buy things with interest?? How does one buy a home? Hiding the interest surely can't be looked at as not paying it, right? I think if there were a God it'd know.

And the reasoning behind this? What's wrong with interest? You're literally just giving something to someone because they helped you get something you'd not otherwise be able to get. Like if someone said I'll allow you to eat today, but you must work on my shed for a hour." That's interest, no? Sorry if this has been addressed, I didn't read all responses. And NO DISRESPECT intended!

[Mosaud1998]

Originally Posted by ///MPhatic

I thought this was a joke at first, I've used that line before, and I'm pure atheist. So forgive me for asking, but this is true, your religion doesn't allow you to buy things with interest?? How does one buy a home? Hiding the interest surely can't be looked at as not paying it, right? I think if there were a God it'd know.

And the reasoning behind this? What's wrong with interest? You're literally just giving something to someone because they helped you get something you'd not otherwise be able to get. Like if someone said I'll allow you to eat today, but you must work on my shed for a hour." That's interest, no? Sorry if this has been addressed, I didn't read all responses. And NO DISRESPECT intended!

I don't even know. As I said, I'm not really religious myself.

But, I talked them into taking the 3-year loan out. But, I feel like we should keep the minivan. I mean, the X7 is a WANT. Not really a NEED

[wtwo3]

Originally Posted by ///MPhatic

I thought this was a joke at first, I've used that line before, and I'm pure atheist. So forgive me for asking, but this is true, your religion doesn't allow you to buy things with interest?? How does one buy a home? Hiding the interest surely can't be looked at as not paying it, right? I think if there were a God it'd know.

And the reasoning behind this? What's wrong with interest? You're literally just giving something to someone because they helped you get something you'd not otherwise be able to get. Like if someone said I'll allow you to eat today, but you must work on my shed for a hour." That's interest, no? Sorry if this has been addressed, I didn't read all responses. And NO DISRESPECT intended!

It's true. Technically dealing with interest is forbidden. I'm not an expert by any means, but from my understanding the religion ends up prohibiting certain things that can lead to self destructive harm, which may be viewed as perfectly normal activity in society today (i.e. drinking alcohol).

In regards to interest specifically, I think it comes down to avoiding the exploitation of less fortunate people, who are more prone to getting stuck in a vicious cycle of compounding interest, growing the loan balance while they continue to make minimum payments. It's essentially - rather than specifying exceptions, complicated rules, etc, let's eliminate even the possibility of predatory lending by prohibiting interest altogether. At least this is my interpretation of why it's forbidden.

In modern society, the interpretation of interest within the religion has varied quite a bit. Some say interest is fine to pay as long as you're not the one collecting interest - because avoiding it in today's world is nearly impossible. Then there's others (some I know personally) who very strictly adhere to the religion and will actually hold off on large purchases until they have the means to purchase those items in cash.

[///MPhatic]

Originally Posted by wtwo3

I'm not an expert by any means, but from my understanding the religion ends up prohibiting certain things that can lead to self destructive harm, which may be viewed as perfectly normal activity in society today (i.e. drinking alcohol).

I see, makes sense, rules from a different age (how many goats can you trade, etc,).

Originally Posted by wtwo3

In regards to interest specifically, I think it comes down to avoiding the exploitation of less fortunate people, who are more prone to getting stuck in a vicious cycle of compounding interest, growing the loan balance while they continue to make minimum payments.

I can certainly understand this, as it happens frequently. My father in law recently took a bit ill, so my wife has been handling his bills. She found that he had been paying interest on a life insurance loan for the last 26 years that could have easily been paid off. I think they have taken him for $80K.

Originally Posted by wtwo3

Some say interest is fine to pay as long as you're not the one collecting interest.

This I don't understand. It can't be any different than collecting any other goods for services rendered.

Originally Posted by wtwo3

Then there's others (some I know personally) who very strictly adhere to the religion and will actually hold off on large purchases until they have the means to purchase those items in cash.

Smart, unless you need credit/a house.

Thanks for the insight!

[vreihen16]

FWIW, the bible also has several mentions of interest not being acceptable.....

[zx10guy]

Originally Posted by Bc2005

I had my BMW loan on autopay, and don’t remember a BMW finance option to simply add $25 each month. However, all the bank connections are already in place, so it was simple to make extra payments of any amount. You just login to BMW finance and make the payment.

Not for autopay. I'm financing both my S1000RR and C650 Sport. Well I was financing my S1000RR. Just paid it off. I didn't set up autopay on either. I paid off the S1000RR way ahead of the 5 year term I had on it. Actually paid it off in less than a year. I was making more than the minimum payment each month up until a few months ago where I accelerated the payments to every other week. All of this was done via BMW FS' website. With the stock market on a downward slide, I opted to tackle the high interest rate of the loan on the RR at 4.99%.

The C650's loan is at 1.99% and I'm deciding if I want to just clear it off my books or take it to term. Only owe $3800 on it and have just over 2 years left to pay it off following the set monthly payments.