Pull ahead to BMWFS Loan - Refinance

[MUNIK-FL]

I bought a 2014 M5 via the lease Pull Ahead program through BMWFS yesterday. I have an 850 credit score (as shown on the disclosure) and I got a 5% APR loan. BS.

The loan officer was kinda greasy but said he was "embarrassed" to show me a rate that high given my credit history. He offered that I should re-finance after 6 months since I could definitely qualify for a much lower rate, BUT that BMWFS will backcharge me the payments they cover through Pull Ahead. I needed the BMWFS loan to even qualify for the Pull Ahead so I couldn't shop the loan there or with my bank.

I planned on refinancing with my credit union today to get a 1.XX% rate, but I don't want to lose the $2400 in payments they just covered. I feel like he knew I would just refinance immediately and he is trying to keep me in this loan since it is legal in Florida for them to skim points on the loan without disclosing it (at least not being up front about it) and that the backcharge is just an idle threat.

I didn't read that there would be a backcharge for the lease payments if I refinance (or otherwise satisfy the loan early) anywhere in my documentation so I think he was lying.

Does anyone have any experience with this?

Thanks,

Paul

[medman2k1]

Why did you agree to the 5% rate to begin with?

Your pull ahead is canceled out by the interest rate, you should have either waited 3 months or financed with lower rate and make the last few payments.


You turned something simple into a complicated issue for no reason

[nv6425]

I used the Pull Ahead last year on my wife's 7 series and paid the loan off the following week - no repercussions at all.

In theory, there would be no way for BMWFS to charge you back as they are your "bank" and the only obligation you have to them is the payoff of the loan.

[MUNIK-FL]

Originally Posted by medman2k1

Why did you agree to the 5% rate to begin with?

Your pull ahead is canceled out by the interest rate, you should have either waited 3 months or financed with lower rate and make the last few payments.


You turned something simple into a complicated issue for no reason

Because I was going to refinance anyway. BMWFS cant touch the rates at my credit union and I was willing to pay one day's worth of interest to get the pull ahead. Not sure how I made this complicated - just checking to see if anyone else had heard of such a thing.

[MUNIK-FL]

Originally Posted by nv6425

I used the Pull Ahead last year on my wife's 7 series and paid the loan off the following week - no repercussions at all.

In theory, there would be no way for BMWFS to charge you back as they are your "bank" and the only obligation you have to them is the payoff of the loan.

Thats what I figured.

Thanks!