[E46Dude]

After a long time - Im hoping to get back into a BMW this year ! Had a lot of BMWs in the past but went the Acura and Audi route in between and now with my lease ending in fall on my S4 Im looking at putting in an order for the new M340.

Its been a while so Im hoping some members can help guide me on whats the best option financially - I am still not sure if I will be financing or will pay cash at delivery once the car is built and delivered.

I am assuming it will take some time to get my order completed since I plan on a custom order (individual colors/Adaptive M/Extended Merino etc). This car will be with me at least 5 years minimum if not more so leasing is not an option. Dealership reckons once the order is placed we are looking at 4-5 months before delivery - German build.

My question is do I need to lock down whether Im financing or purchasing directly at the time of the order ? Or can I agree on financing / put down the application etc - but before delivery switch to paying out the balance and not proceed with financing?

Whats the best option - I do see some financing incentives but theyre not terribly exciting either if you do the numbers

[kruzader]

As per my SA, you can change lease to finance at any time. The price is what gets locked down depending on how much discounts you get and the configuration of the vehicle. The times of 10% upwards discounts are gone. The maximum you get nowadays is 2-4% depending on the dealership. My 2 cents.

[springerdrive]

Unless your financing interest rate is 0% (that's not happening now), paying cash is always the most economically sensible route. It's been a while since I've been able to pay cash for a car, so fortunately we got a 1.9% rate plus a $1,000 credit.

[clifftr]

Originally Posted by springerdrive

Unless your financing interest rate is 0% (that's not happening now), paying cash is always the most economically sensible route. It's been a while since I've been able to pay cash for a car, so fortunately we got a 1.9% rate plus a $1,000 credit.

Inflation is in high single digits, 7-9%. I would finance it, you will save money. You can get 3-4% rate for 60 months. Assuming inflation stays around high single digits in the next few years, you are saving money in real terms. 8% inflation, 4% interest rate, you are saving 4% annually on real terms. When inflation normalizes and returns to Fed's long term target of 2%. You can pay it off. That's what I will do when I receive my car.

[onimusha1]

I was originally going to pay cash for my incoming m340i but with the recession and inflation I will finance 40k and keep my cash elsewhere or on hand.

Do folks reccomend financing directly through SA/BMW financing?

[squareforce]

Originally Posted by onimusha1

I was originally going to pay cash for my incoming m340i but with the recession and inflation I will finance 40k and keep my cash elsewhere or on hand.

Do folks reccomend financing directly through SA/BMW financing?

I would shop around to see which rates you can get. Bmw financial is how I went and wifey talked me into 0.9 for 5 years vs 1.9 for 6. Plus it's built into the bmw app so paying each month is very streamlined.

[E46Dude]

Originally Posted by kruzader

As per my SA, you can change lease to finance at any time. The price is what gets locked down depending on how much discounts you get and the configuration of the vehicle. The times of 10% upwards discounts are gone. The maximum you get nowadays is 2-4% depending on the dealership. My 2 cents.

Right but can we change from financing when ordering to cash at delivery or the other way around for example. If Financing is 2.99% - it may be cheaper to pay cash at delivery especially with the rates all over the place.

Originally Posted by springerdrive

Unless your financing interest rate is 0% (that's not happening now), paying cash is always the most economically sensible route. It's been a while since I've been able to pay cash for a car, so fortunately we got a 1.9% rate plus a $1,000 credit.

Thats a really good rate. BMW is only offering me 2.99 x 60 months. I'm getting the loyalty credit but thats pretty much all. My bank may be more helpful but with the car probably not even making it here till end of the year - its probably not worth it to ask them at this point.

[G35TOG20]

Originally Posted by onimusha1

I was originally going to pay cash for my incoming m340i but with the recession and inflation I will finance 40k and keep my cash elsewhere or on hand.

Do folks reccomend financing directly through SA/BMW financing?

That's exactly what I did, gotta keep my money. i was able to lock my rate at 0.9% when i placed my order on October.
Keep your cash.

[E46Dude]

Originally Posted by G35TOG20

That's exactly what I did, gotta keep my money. i was able to lock my rate at 0.9% when i placed my order on October.
Keep your cash.

Amazing u guys are getting 0.9% - thats insane. Id jump on that for sure.

[LPTyler]

I don’t like to have a car payment so I would pay cash if possible. Technically it costs you money but it sure makes me feel good to not have a payment.