Extended warranty and finance APRs on bmw

Dec 4, 2021 3 Comments

Planning to buy a couple years old bmw for regular commute (will still be few days a week God knows when offices open, so leasing doesn't sound interesting thinking it would be money paid for time even when used far less).

1. What's the average/lowest APR most people pay on financing? First Tech via Microsoft seems to be offering 2.67% for used cars but I see people mentioning 2%.

2. The residual insurance i.e. I am left with 2 years of factory warranty + 15k miles. If I try getting 6 year, 120k miles, it's costing around 6.5k from dealership for a 38K 5 series.

Any suggestions? Getting a bmw without warranty is a bad idea. I usually keep cars well maintained.

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  • Google / Eng
    ugngx

    Go to company page Google Eng

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     ugngx
    Historically, leases are often cheaper on BMWs because BMW gives ridiculously high residual values on leases, and there are often discounts for leases that are not available for cash purchases. This may not be true anymore with inflated used car prices.

    Getting a BMW without warranty is a bad idea. Extended Warranties can be bought from any dealer in the US, as long as the car is currently under warranty. This means, you can have dealerships fight for your business and claim a hefty discount. Shop around.
    Dec 4, 2021 0
  • Google / Eng
    ugngx

    Go to company page Google Eng

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     ugngx
    Get the extended warranty from BMW. The others won't be the same, and BMW's is quite comprehensive. Again, you can only do this if the car is currently under warranty (< 4 years typically). If you tell a BMW dealership the car's VIN, you can get their retail price, which is marked up. Negotiate that.

    For leases, email closest 3 dealers around you. Give them a spec sheet or current stock# and ask for invoice+$1k+current incentives to one dealer. Ask for invoice+$750 to another, and invoice+$500 to the last. The invoice price is typically around 93% of MSRP. Play each with the other. Once you settle on the price, tell them about your corporate discount, for which they'll want the form filled out. It doesn't cost the dealer anything for the corporate/loyalty discount, the discount comes from BMW Corporate. And lastly,, get a BMWCCA membership for a rebate before putting your order in.

    Depending on the month you order in, BMW Financing would have different lease Money Factors per model. I typically email a different dealer than the one I'm working with to get those numbers. The dealer giving you the low discounted deal will give you a higher inflated MF to balance out the deal Negotiate to the base MF. I've never paid a MF higher than the base while still getting an invoice+$X price.

    Considering limited stock, ordering a car and waiting for it with the negotiation would probably net you a better deal than taking something from their stock. More dealers are likely make a deal before end of year to pump up their sales numbers.

    Also, this helps compare deals: https://leasehackr.com/calculator

    Good luck!
    Dec 4, 2021 0
  • OP
    Thank you that helps. Follow up on warranty. The car I saw is not from a bmw dealership (it's another luxury dealer) and I like to think it's a decent offer. 530i, 2020, 34k miles, selling for about 37k.

    Can I still try getting warranty from BMW dealership. What above dealership quoted was like 6k for 6 yr 120k miles.

    Where as I had seen cheaper warranties e.g. on sites like caravana, it's 1500-2500.
    Fair to wonder if both would be bumper to bumper or not. But still massive difference.

    Lastly on the lease recommendation, any tips on getting better deals.

    There is a negligible Microsoft discount that doesn't apply if you already have loyalty.
    Dec 4, 2021 0