buying a new car, bmw finance question

[m0lt3n]

Hi guys.
I am signing my life away soon (hopefully) on an F30. :rollsmile:

bmw finance is offering rates way below prime, this seems almost too good to be true so....is there any fine print I should be aware of? I am stretching my budget a lot so would rather not have any nasty surprises later.

 

[sanesh21]

Just watch out for balloon payments, and clarify this with them before agreeing anything.


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[WyKiD]

Not sure on the details with bmw finance but be wary of not over extending yourself, bear in mind if interest rates go up so do your premiums.

 

[Speedy]

Most of there sub prime offers are fixed rate (just check on this) they also add an additional amount onto your finance amount to cover themselves if the rate changes.

I got my car at 5.99 percent fixed, no residual or balloon payments, but there was an additional fee of 6k on the finance.



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[m0lt3n]

Fortunately its with no balloon payment, actually part of the conditions.

These low rates means there is no use in paying a car of fast and rather put my money into a house loan. Odd but cool! My previous car I pushed the payments hard, but with the low rate now I can buy more expensive and pay the same installment. Or thats my way of thinking to justify getting my dream car.

If finance is approved I should be introducing my new baby soon! Super psyched!

thanks for the inputs all

 

[Bernard///M3]

I'm very happy with them.
When I bought the 335, it arrived 24 hours after I ordered it instead of 2.5 months wait, they found my exact spec somewhere. Anyway the guy who bought my Double Cab was waiting for some money to come in so I bought my car with a balloon payment and a month and half later I settled my ballon but kept my payments the same so I actual pay off the car in less time. So there are ways of using ballon payments in ur favour.

Now at interest rate it's probably 320i or 320d right? They told me you won't get those rates on 335s. Nothing wrong with it's simply a lower interest rate to move stock. My Friend who is a director at Barloworld says car sales is down 10% year on year. So he too will have specials on Isuzu bakkie's from tomorrow to move stock.

And yes if you have a fixed amount to spend you can afford a more expensive car if your interest rate is lower.

All the best with the deal

 

[m0lt3n]

Thanks Bernard. I did not know one can settle a balloon payment like that before the end of term. Thats a good idea, I am not to fond of paying 5 years on a car, then you need to own it more than 3 to only have paid enough to have a little deposit for the next upon trading, but ah well.

Seems like a normal loan then, just with lower interest.
Thanks, just wanted to know of someone happy with it.

Its a 330d :rollsmile: Cant wait!

 

[Bernard///M3]

Another thing that's interesting!

I normally pay my cars off between 2 to 4 years, as an individual you can at anytime settle a vehicle with no penalties being charged as per the New Credit Act. But if the vehicle is in a company's name you get a 3 month interest penalty, it was like this for individuals in the past. The trick is to give them a 3 month notice, then you can settle without penalties.

Like now my Prado i have owned for 22 months, in Feb I wanted to settle but because it's in my CC's name I gave notice, so now this month I can officially settle it.

One thing that still bothers me big time about the NCA is the way they treat business owners like 2nd class citizens. I could finance a R600k car in 30mins but let me finance a R600k house, all hell breaks loose, I'm sick and tired of seeing my clients who can easily afford the houses being rejected for silly reasons.

 

[m0lt3n]

Agreed Bernard. Also the way you have to have debt to make a loan. It makes no sense, you basically have to proof you cant manage your money before being given more money.

Ai...now I first need to proof I do have rent income because the money is deposited directly into the loan. It would have been so much easier if they could access your bank statements themselves