European Delivery Car Loans?

[///M///]

So I have multiple questions surrounding the whole loan process with ED cars. Any help is appreciated. I was initially planning on paying cash down for the car but came across a few good investments and am now going to finance 45-50k of the cost.

First question is around who to get the loan from?

1) So the easiest way would be to go through BMW but their best rate right now is 1.9%.

2) Credit Unios - DCU is right now at 1.74% and from I hear 1.24% if you setup a direct deposit from your checking account. Western Credit Union advertised at 0.74%

I know BMW would the easy option but how much of a hassle is it going through a credit union? Are they familiar with the ED process?

Second questions was related to the timing of the loan? How late should one apply for it? I don't like my credit getting dinged multiple times and would prefer a single pull for the loan and that's it. When does the loan kick in and when does the interest start to accrue? For BMW I would think it is the delivery day. Not sure on the credit unions. I see some folks on the forum mention that they wished they had applied later closer to the delivery date. Why?

Can any of you who have financed recently chime in please?

Thanks.

[TheDiddy]

Originally Posted by dsm918

So I have multiple questions surrounding the whole loan process with ED cars. Any help is appreciated. I was initially planning on paying cash down for the car but came across a few good investments and am now going to finance 45-50k of the cost.

First question is around who to get the loan from?

1) So the easiest way would be to go through BMW but their best rate right now is 1.9%.

2) Credit Unios - DCU is right now at 1.74% and from I hear 1.24% if you setup a direct deposit from your checking account. Western Credit Union advertised at 0.74%

I know BMW would the easy option but how much of a hassle is it going through a credit union? Are they familiar with the ED process?

Second questions was related to the timing of the loan? How late should one apply for it? I don't like my credit getting dinged multiple times and would prefer a single pull for the loan and that's it. When does the loan kick in and when does the interest start to accrue? For BMW I would think it is the delivery day. Not sure on the credit unions. I see some folks on the forum mention that they wished they had applied later closer to the delivery date. Why?

Can any of you who have financed recently chime in please?

Thanks.

I have many of the same questions. I hope someone can chime in. If not I will end up calling my credit union to figure it out.

[///M///]

Originally Posted by TheDiddy

I have many of the same questions. I hope someone can chime in. If not I will end up calling my credit union to figure it out.

Thank you. I am surprised there have been zero responses.

[AnujS2K]

I believe many of the larger credit unions know about ED and you can finance through them.

Regarding BMWFS, the first payment is due generally in 60 days after the paperwork has been signed (a week before your trip?). I assume the interest begins then too hence why people stating the later you sign the better.

[///M///]

Originally Posted by AnujS2K

I believe many of the larger credit unions know about ED and you can finance through them.

Regarding BMWFS, the first payment is due generally in 60 days after the paperwork has been signed (a week before your trip?). I assume the interest begins then too hence why people stating the later you sign the better.

Thanks for replying. How long is the whole application/approval process? My delivery date is Aug 28. So apply for the loan say Aug 10-15 or is that still too early? My CA tells me that if I apply now I can lock in the 1.99% rate for 60 days. It may go up or down next month.

Any thoughts?

[MrSmileyDC]

Originally Posted by dsm918

Thanks for replying. How long is the whole application/approval process? My delivery date is Aug 28. So apply for the loan say Aug 10-15 or is that still too early? My CA tells me that if I apply now I can lock in the 1.99% rate for 60 days. It may go up or down next month.

Any thoughts?

I just went online to apply with Penfed this week to finance about the same amount as you. Believe they have a 60-90 approval window. The rate was 1.99% when I applied and I guess I'll find out the details when the loan package comes in the mail.

[SamS]

Originally Posted by BimmerGuyDC

I just went online to apply with Penfed this week to finance about the same amount as you. Believe they have a 60-90 approval window. The rate was 1.99% when I applied and I guess I'll find out the details when the loan package comes in the mail.

After approval, the rate you get from PenFed is what is in effect during the month the dealer cashes your check. There is no "lock" for their rates, unfortunately.

[MrSmileyDC]

Originally Posted by SamS

After approval, the rate you get from PenFed is what is in effect during the month the dealer cashes your check. There is no "lock" for their rates, unfortunately.

Must be the case. They came back with 2.24% for 60 months. Works out to about $881 a month for 50k. Only $5 more a month vs 1.99%

[Whttiger25]

Western Credit is only 0.74% for 3 year loans, so if you want to do 3 years that would make sense, but at 4 years it jumps to 1.74% and 1.99% for 5 years, very close to BMW.

[MrSmileyDC]

Originally Posted by Whttiger25

why wouldn't you just finance it with BMWFS?

I haven't gotten a rate quote from BMWFS yet. I'll have to check with my CA about them as none of that information is out yet. I've never really seen low rates for 60 month loans with them except for when they do CPO offers.

[///M///]

Originally Posted by Whttiger25

Western Credit is only 0.74% for 3 year loans, so if you want to do 3 years that would make sense, but at 4 years it jumps to 1.74% and 1.99% for 5 years, very close to BMW.

All these credit unions don't finance for ED. Have some rule that the car has to be in the US. Need special permission even to drive to Canada. I called both DCU and WCU. Same answer. They refuse to finance ED.

Originally Posted by BimmerGuyDC

I haven't gotten a rate quote from BMWFS yet. I'll have to check with my CA about them as none of that information is out yet. I've never really seen low rates for 60 month loans with them except for when they do CPO offers.

Current 1.99% is pretty good for BMWFS, won't you say?

[SamS]

Originally Posted by dsm918

All these credit unions don't finance for ED. Have some rule that the car has to be in the US. Need special permission even to drive to Canada. I called both DCU and WCU. Same answer. They refuse to finance ED.

How do they even know you're doing ED? Not trying to be shady, but really you just have to give them a VIN and dealer info.

[///M///]

Originally Posted by SamS

How do they even know you're doing ED? Not trying to be shady, but really you just have to give them a VIN and dealer info.

Understood but it's outside of their policy. You are right, they cannot know but their questionnaire does ask where the car will be driven. Cannot lie.

[SamS]

Originally Posted by dsm918

Understood but it's outside of their policy. You are right, they cannot know but their questionnaire does ask where the car will be driven. Cannot lie.

Yeah, the car is going to be driven in the US. It's not a lie, and why would they care? It's fully insured while on ED.

[///M///]

Originally Posted by SamS

Yeah, the car is going to be driven in the US. It's not a lie, and why would they care? It's fully insured while on ED.

You have to ask them that. I didn't write their policies

[Deja_Vu]

Originally Posted by dsm918

Understood but it's outside of their policy. You are right, they cannot know but their questionnaire does ask where the car will be driven. Cannot lie.

That is really odd. I can understand insurance caring, but why the title holder?

[Whttiger25]

Originally Posted by Deja_Vu

That is really odd. I can understand insurance caring, but why the title holder?

While it sounds like something that's they may never actually know about, not sure the interest rate savings are worth the hassle especially over only 3 years. With 5 year loans it looks like little benefit. I also suspect that bmw will bring back 0.9% financing when they eventually open up allocations more

[///M///]

Originally Posted by Deja_Vu

That is really odd. I can understand insurance caring, but why the title holder?

Think of it this way....the title holder is the owner of the vehicle. If you default they take your car but if the car is totaled they have to make do with what the insurance pays them. Yes BMW may cover the car 100% percent but why would the title holder risk getting involved with international incidents. They have less to no control over what happens outside of the US and it's a risk they are probably not willing to take.

[///M///]

Originally Posted by Whttiger25

I also suspect that bmw will bring back 0.9% financing when they eventually open up allocations more

If that happened BMW would be the obvious choice

[MrSmileyDC]

Originally Posted by dsm918

All these credit unions don't finance for ED. Have some rule that the car has to be in the US. Need special permission even to drive to Canada. I called both DCU and WCU. Same answer. They refuse to finance ED.

Current 1.99% is pretty good for BMWFS, won't you say?

The finance person at my dealer said they had 2.79%

Told them my Penfed rate and they said they could probably find a bank to beat it. I'm wondering if the dealer arranges financing with a bank if it would make more willing to finance ED.

We shall see.

[MrSmileyDC]

Originally Posted by dsm918

If that happened BMW would be the obvious choice

Very true. All this talk about the fed raising the interest rate over the last few quarters has me thinking this is why a lot of rates bumped up in July.

[///M///]

Current posted rates on the BMW site are 1.99% for 3 years. Applies to all 2015's.