Automotive

Will I get approved for BMW Finance?

  • Last Updated:
  • Nov 10th, 2017 9:31 pm
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Aug 16, 2009
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Forget about the interest rate. What are paying for this BMW? I'm talking everything, downpayment + taxes + total payments. If you were able to save a large payment for both your nissan or BMW, there is no reason you can't just save the total amount of the car price and skip financing.
[OP]
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smokescreen15 wrote:
Nov 8th, 2017 10:50 am
Forget about the interest rate. What are paying for this BMW? I'm talking everything, downpayment + taxes + total payments. If you were able to save a large payment for both your nissan or BMW, there is no reason you can't just save the total amount of the car price and skip financing.
Well that's the thing, the car with taxes ans everything is $29k, I took it on a 5 year loan with a downpayment, but I intend to finish the payments in under 12 months. I have my own circumstances, which is why I decided not to opt for a full cash payment.
[OP]
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Thanks for all the comments everyone, just found out that the financing was accepted! I'll be able to pick it up either tomorrow or Friday.
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Ziggy007 wrote:
Nov 8th, 2017 10:16 am
large down payment so I wouldn't worry too much about it.

That said, you were in a previously bad financial situation and with a credit score in the 500s you have now purchased a couple cars totaling 60K in he past year. Maybe you want to stop taking on so much debt to avoid a repeat of the scenario? Why does someone with bad credit need a BMW? Go grab a Hyundai Elantra dude...
So you can act like you have money and to show off. If your Nissan is only a year old, then why not just drive that? Why do you need a BMW? I see a repeat of the bad financial situation in your future.
[OP]
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RCML27 wrote:
Nov 8th, 2017 11:20 am
So you can act like you have money and to show off. If your Nissan is only a year old, then why not just drive that? Why do you need a BMW? I see a repeat of the bad financial situation in your future.
The bmw is a gift for someone I cherish. Of course I wouldn't buy a second car within a year for myself. As for money, I'm largely covered, and I've been so for a 2-3 years now. Its just that recovering from a bad credit takes several more years, and is extremely difficult.
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RCML27 wrote:
Nov 8th, 2017 11:20 am
So you can act like you have money and to show off. If your Nissan is only a year old, then why not just drive that? Why do you need a BMW? I see a repeat of the bad financial situation in your future.
That's harsh. He had posted that he would be paying it off in 12 months. I guess OP came here since he was a bit nervous about getting approved for the financing and wanted some opinion on whether he would get the low rates or not. It's not fair to judge his financial future or his motive behind getting the car.

OP- I was about to post enjoy the new ride, but saw that you had posted it was for someone else.
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EehamK247411 wrote:
Nov 8th, 2017 10:58 am
Well that's the thing, the car with taxes ans everything is $29k, I took it on a 5 year loan with a downpayment, but I intend to finish the payments in under 12 months. I have my own circumstances, which is why I decided not to opt for a full cash payment.
Sorry to sound like I'm questioning your rational, but your plan doesn't make any financial sense. If you intend on paying it off in 12 months, then you should at the very least get a financing plan that reflects that period. Mind you, I don't think anyone should be financing anything if you will be paying it off in "under 12 months".

I don't want to count your pockets, but you are probably costing yourself thousands in additional interest charges by taking a 5 year loan.
Last edited by smokescreen15 on Nov 8th, 2017 12:04 pm, edited 1 time in total.
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smokescreen15 wrote:
Nov 8th, 2017 12:04 pm
Sorry to sound like I'm questioning your rational, but your plan doesn't make any financial sense. If you intend on paying it off in 12 months, then you should at the very least get a financing that reflects that period. I don't want to count your pockets, but you are probably costing yourself thousands in additional interest charges by taking a 5 year loan.
Except auto loans are open loans, which means you can pay it off as quickly as you like and not get dinged for extra interest...

C
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CNeufeld wrote:
Nov 8th, 2017 12:06 pm
Except auto loans are open loans, which means you can pay it off as quickly as you like and not get dinged for extra interest...

C
Is interest factored into monthly car payments?
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Apr 14, 2008
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EehamK247411 wrote:
Nov 8th, 2017 10:58 am
Well that's the thing, the car with taxes ans everything is $29k, I took it on a 5 year loan with a downpayment, but I intend to finish the payments in under 12 months. I have my own circumstances, which is why I decided not to opt for a full cash payment.
Is this a dealer/manufacturer - financed 5 year loan? I would weigh the benefits of paying that off earlier vs. something like putting a bigger dent into the mortgage or contributing to savings.

If they structured it the way VW did mine, they priced in the total amortized interest (5 years worth) ahead of time, then split that total up into monthly payments. So no matter what, they're receiving 5 years worth of interest regardless of how fast it's paid off.

ie: Whether you pay it off in 1 year or use the full 5, you might already on the hook for the total interest amount for 5 years.
[OP]
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wolfpack27616 wrote:
Nov 8th, 2017 11:47 am
That's harsh. He had posted that he would be paying it off in 12 months. I guess OP came here since he was a bit nervous about getting approved for the financing and wanted some opinion on whether he would get the low rates or not. It's not fair to judge his financial future or his motive behind getting the car.

OP- I was about to post enjoy the new ride, but saw that you had posted it was for someone else.
Thanks a lot! I'll make sure to enjoy it!
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larphraulen wrote:
Nov 8th, 2017 12:18 pm
Is this a dealer/manufacturer - financed 5 year loan? I would weigh the benefits of paying that off earlier vs. something like putting a bigger dent into the mortgage or contributing to savings.

If they structured it the way VW did mine, they priced in the total amortized interest (5 years worth) ahead of time, then split that total up into monthly payments. So no matter what, they're receiving 5 years worth of interest regardless of how fast it's paid off.

ie: Whether you pay it off in 1 year or use the full 5, you might already on the hook for the total interest amount for 5 years.
No.

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