[The Nerd]

As the title states….I'm wondering if anyone has had success in paying off their loan (or transferring their loan) before the 4 payment minimum. Specifically….I found a credit union that I'd like to transfer my loan to, but I'd like to do it ASAP. I know BMW "says" that you have to make 4 payments first…..but has anyone paid off or transferred their loan earlier without problem?

[vj123]

I dont think BMWfs has prepayment penalty.

Dealers ask you to wait for 90 days so that they can get their share.

[02M3ForMe]

Originally Posted by The Nerd

As the title states….I'm wondering if anyone has had success in paying off their loan (or transferring their loan) before the 4 payment minimum. Specifically….I found a credit union that I'd like to transfer my loan to, but I'd like to do it ASAP. I know BMW "says" that you have to make 4 payments first…..but has anyone paid off or transferred their loan earlier without problem?

BMWFS will take your payoff the moment the account is live in MyBMW, which is generally within 1-2 weeks of purchase. You can get your official payoff documents with current and 10-day quote right from the interface and follow the instructions to close it out.

Dealers prefer that you hold onto the account for a certain period (3-6 months) to ensure they get their credit/bonus/spiff. Ultimately, you do you.

[Flying05]

Other than just wanting to not have a car loan and knowing that it's paid off, any reason why you would even want to do that? Are there not still some good interest rates out there? In this crappy market, why would you not just invest in beat up quality stocks. No way would I pay cash right now for a car, especially in this buying opportunity for stocks providing you can hold for a few years. You'd make a great return!

[Former-Mopar]

Originally Posted by The Nerd

As the title states….I'm wondering if anyone has had success in paying off their loan (or transferring their loan) before the 4 payment minimum. Specifically….I found a credit union that I'd like to transfer my loan to, but I'd like to do it ASAP. I know BMW "says" that you have to make 4 payments first…..but has anyone paid off or transferred their loan earlier without problem?

As long as no prepay off penalty you can do it. I did it with my f150. They wanted me to make 4 payments. I didn't not switched to my credit union.

[The Nerd]

Originally Posted by Flying05

Other than just wanting to not have a car loan and knowing that it's paid off, any reason why you would even want to do that? Are there not still some good interest rates out there? In this crappy market, why would you not just invest in beat up quality stocks. No way would I pay cash right now for a car, especially in this buying opportunity for stocks providing you can hold for a few years. You'd make a great return!

I can get a better rate (and lower monthly payments) by refinancing w/this credit union. I will pay off early anyway down the road….but in the meantime, why wouldn't I want a lower rate?

[Higgs Boson]

what is current rate and new rate?

how many months before you make the payoff?

how many months have you had the loan?

do you care about your dealer in any way at all?

[Flying05]

Originally Posted by The Nerd

I can get a better rate (and lower monthly payments) by refinancing w/this credit union. I will pay off early anyway down the road….but in the meantime, why wouldn't I want a lower rate?

Originally Posted by The Nerd

I can get a better rate (and lower monthly payments) by refinancing w/this credit union. I will pay off early anyway down the road….but in the meantime, why wouldn't I want a lower rate?

Ah, maybe I misread somewhere. Was thinking just pay cash to pay the car off. I believe 3-4 months is standard and what they tell you, but could probably be payed off sooner. I was told this with a Jeep dealer when I bought my wrangler. That said, I think the finance person tells you this so they get credit and is probably a minimum time for you to hold the loan.

[BMWRacer523]

You can payoff as soon as your account is activated (mine took 2 weeks I think). I don't believe it is even legal to have waiting periods in most states. Which CU are you getting a better rate at? Back when I purchased last Nov BMWFS at 0.9% was cheaper than the CUs I got pre-approved for (DCU and PenFed).

[BugKiller]

By 4 payments are we talking about the down payment at purchase, followed by 3 monthly payments?

Has anyone encountered an issue making a large down payment?

Found two dealers with allocations. One wanted MSRP+$7.5k. I said "No." The other wanted MSRP and for me to take BMW financing and make at least 3 payments so it gets credited for the loan. I said "Yes" and my car is waiting to be shipped.

I feel my CA and dealer have been straight with me so my plan is to make a large down payment, 2 minimum-amount (i.e., normal) payments, and a final large (remaining total) payment. I will pay a little interest but likely increase my credit score a little. Am I missing something?

[gohawks23]

Originally Posted by BugKiller

By 4 payments are we talking about the down payment at purchase, followed by 3 monthly payments?

Has anyone encountered an issue making a large down payment?

Found two dealers with allocations. One wanted MSRP+$7.5k. I said "No." The other wanted MSRP and for me to take BMW financing and make at least 3 payments so it gets credited for the loan. I said "Yes" and my car is waiting to be shipped.

I feel my CA and dealer have been straight with me so my plan is to make a large down payment, 2 minimum-amount (i.e., normal) payments, and a final large (remaining total) payment. I will pay a little interest but likely increase my credit score a little. Am I missing something?

Just finance the BMWFS minimum loan amount (less interest being paid)...it used to be 7500, I think 8000 now...and pay off in 4 months to take care of a dealer who took care of you.

[The Nerd]

Originally Posted by BugKiller

By 4 payments are we talking about the down payment at purchase, followed by 3 monthly payments?

Has anyone encountered an issue making a large down payment?

Found two dealers with allocations. One wanted MSRP+$7.5k. I said "No." The other wanted MSRP and for me to take BMW financing and make at least 3 payments so it gets credited for the loan. I said "Yes" and my car is waiting to be shipped.

I feel my CA and dealer have been straight with me so my plan is to make a large down payment, 2 minimum-amount (i.e., normal) payments, and a final large (remaining total) payment. I will pay a little interest but likely increase my credit score a little. Am I missing something?

I put about 2/3 of the entire cost down and they had no issue with my financing "only" 1/3 (to answer your question). But regarding refinancing the remainder before I make 4 payments (I guess the down payment counts as #1?)…..I was just wondering if anyone experienced a penalty or threat of penalty for doing so. If the answer is no, I'm guessing the 4 payment thing was just the finance guy trying to get me not to payoff/refinance too early.

[LuvMyE92]

You know... guys and gals, if you have questions like this, just read the finance contract. That's the only way you'll know for sure. Some of us, not me, but some people actually read it before they sign. LOL

I once worked for a bank, and I remember that they did a lot of dealer financing, and this was a big push for them, an extra $25 pre-payment penalty. Or maybe is was $250, who can remember? I thought it was kind of stinky, as they buried it in the fine print.

[BugKiller]

Originally Posted by LuvMyE92

... just read the finance contract. ...

They taught us in my Contracts class that there are times to not read the contract. Ignorance, undue burden, time pressure, void as a matter of public policy, etc. are potential defenses or mitigating factors but it is hard to argue them if the contract was read.

You know your client does not understand the law and how it works when they say "but it says here in writing."

[retroviol3t]

I once had a mortgage company tell me I couldn't refinance my loan on my house for 6 months because of how new my business was after my divorce. I quickly found out within 4 months that they were lying and the real reason was they needed me to wait 6 months so they could get some type of kick back or something on the loan or from selling the loan to another servicing company. I refi'd before the 6 months, saved myself some money and interest in the long term... and got a call from the old mortgage company asking me in my voicemail if I refinanced.

Never spoke to them again.. didn't feel bad for them after finding out they were lying. Had they just been upfront with me and told me, maybe we could of worked something out or I would have honored it with them.. but not when they lie..

[aj_g80]

the bank isn't your friend. Neither is the dealer..do as you please. Unless in the circumstance that you always buy from that particular dealer and they treat you well..

[LuvMyE92]

Originally Posted by BugKiller

They taught us in my Contracts class that there are times to not read the contract. Ignorance, undue burden, time pressure, void as a matter of public policy, etc. are potential defenses or mitigating factors but it is hard to argue them if the contract was read.

Wow. I certainly don't want to derail this thread into some kind of arcane legal theory, but I interpret your post to mean that I could sign a contract and if later I discover that I don't like the terms, I can claim that I was too ignorant to understand what I was doing?

In criminal law, ignorance is not a defense, but I guess it is in civil cases?

I am not a lawyer, but I did stay at a Holiday Inn Express last month.

This reminds me of a famous Southpark episode wherein we discover what that 3000 page iTunes disclaimer that we all sign without reading really means.

[BugKiller]

Originally Posted by LuvMyE92

Wow. I certainly don't want to derail this thread into some kind of arcane legal theory, but I interpret your post to mean that I could sign a contract and if later I discover that I don't like the terms, I can claim that I was too ignorant to understand what I was doing? ...

Pretty much, especially in states like California where concepts like personal responsibility have become meaningless.

Originally Posted by LuvMyE92

...
In criminal law, ignorance is not a defense, but I guess it is in civil cases?
...

Not sure I agree with that .... Let us just say maybe less so for a criminal defendant than their attorney. The first thing we were taught in my law school ethics class was to never ask the client if they did it. For example, if the client has told us "Yea, I just hated him" we cannot ask the client on the stand "So it was really self defense?"

FYI: I have never practiced criminal law and am proud of that.