[chetman7]

Hey all

as my 435 gets closer and closer to my dealership, I am seeking some financing advice. My previous car I received a good rate because my father knew the guy so we went through the dealership

My dealership ran my credit and said I have pretty good credit score. My credit score is roughly 745, and my auto score according to experion is 815.

BMW offered 3.01% for 5 year financing on ~40K as I will be putting my trade +cash so it equals a 20k down payment in total. My father offered to co-sign and his credit is score is upwards of 830. He said it wouldn't make a difference as I was approved for the best rate on my own.

I have a creditkarma.com account and it said Capital One ran my credit through BMW. I'm assuming they offered BMW a rate and BMW will add a little percentage and offer that to me so they take a cut in my loan.

My question is...what are the benefits of financing through BMW at 3.01% or going through lets say my local bank which has been advertising 1.99% On a 40k loan for 5 years that 1 percent equals a $1K difference

Second question, can't I just submit an application to Capital One myself and just cut BMW out as the middle man so I get a better rate.

Thanks in advance for any advice. I just don't want to get to the dealership and have to tango all day with them

[puma1552]

Always go with the best rate, bottom line.

[Dog Face Pony Soldier]

What would be the difference if you paid cash or got a loan from a third party? Same thing as far a BMW is concerned.

[JohnnyO]

Originally Posted by chetman7

My question is...what are the benefits of financing through BMW at 3.01% or going through lets say my local bank which has been advertising 1.99% On a 40k loan for 5 years that 1 percent equals a $1K difference

I've heard of nothing that suggests any benefit to using the BMW financing unless they have other breaks. At the local BMW dealership they are offering a $500 rebate/discount if you finance through them. I might finance a small portion of the car through them for a year to take advantage of that deal.

Otherwise, local (or national) credit unions tend to have very good rates these days.

John