Quote:
Originally Posted by bloozemanAZ
Unless BMW FS has special terms built into their financing loans you should be able to pay it off literally the month after it is processed. All you need to do is check the fine print in regards to any "pre payment penalty". Sounds like BMW FS has that set at anything less than 3 months.
Somewhat shady but guessing they are CYAing the loyalty $ but even if you pay off in 3 months you should be well ahead of the $1500 loyalty against the interest for 3 months. Just put $ down for 80% if not more and finance the rest for a 48 to 60 month loan. The interest on the 3 months will still keep you in the green from the loyalty cash.
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you got it----
There is no charge back for loyalty as that is a factory FS to customer payout and the dealer gets none of it. All the dealer does is get reimbursed for the deduction in the sale. They get that no matter what the time period of an early payoff is or isnt.
BMWFS only has chargebacks at 90 days on reserve's made via apr bumps or lease bumps but not on flats.
Reserve is when there is a markup on the lease mf or retail apr...
EG: contract rate is 7.99 but FS buys the deal at 6.99; the dealer makes 100 basis points of the margin but then there is a split of that certain dollar amount (I can tell you more but its boring).
The same works for the lease- EG buyrate at .00185 and dealer contracts it at .00225 (max FS bump is .0004). The dealer gets the margin times a split in reserve.
Both of these instances are subject to an early payoff which can lead to a chargeback on their net monthly reserve statement when or if that occurs.
Flats are unique small fixed dollars (based on amf) allocated to each contract if the buy and contract rates are equal. These are not charged back for early pays. BMWFS has a weird ass flat payout--- 5 dollars for every 1000 dollars of amount financed so if one finances 100k, and there is not markup on rate, the flat to the dealer is 500 bucks.
Ok back to our regulary scheduled program
