[Scotlac]

Hi guys!

My car should be here in a couple of weeks so I've been buckling down and doing my homework in order to get the best deal that I can. I've already negotiated $2100 off the price of the car.

I was originally intending to do a lease but just recently have become aware of the Owner's Choice option. Since I'm in Texas and we have to pay taxes on the full price of the car it looks like this might be the best option for me.

There is ample information available in the forums regarding lease deals but I haven't seen much about this option. From what I can tell I would essentially be purchasing the car with a balloon payment at the end of the term. At which point I can trade the car into the dealer (at a predetermined price) or refinance.

Does anyone know what to expect for an APR in this scenario? I'm assuming it would be higher than what you would expect from a traditional finance....

Anyone have any tips or advice?

Thanks in advance!

[Gaviin]

From my experience with OC so far, the current rate is 4% in Illinois. That's based on inquiring with several Chicago dealers independently, so I'm pretty confident that it's an accurate figure for April. But not sure if the rate would be the same in TX.

Apparently the OC rate keys off the lease rate somehow (obviously it's quite a bit higher), not the regular finance rate. I was able to get it down to 3.5 based on my credit score, but not sure if that's a standard thing.

I will say that, at least here, I probably would have gone with leasing if it weren't for the terrible taxes that Chicago and Cook County impose on leases (not only higher rates, but also an 8% extra tax on top of each monthly payment). With max MSDs, the payments worked out to be about the same, but at least with OC I wouldn't have to tie up several thousand bucks or pay anything up front. If all you have to deal with is including the full tax in the cap cost, not sure OC will really pull ahead. Unless TX also would charge you tax again if you chose to buy at the end of the lease period, which is what IL does... then OC might still be better.

For someone who just wants a straight-up lease with no desire to buy at the end, I really don't see how OC is worth it unless you're living in Chicago. lol

[Scotlac]

Thanks Gaviin!

As far as I know Texas does not charge an additional tax on the monthly payment. It's just that we pay tax on the full amount rather than the adjusted amount. It sounds like you guys are really getting screwed up there!

I'm really excited about this car and I can see myself keeping it beyond three years assuming that there is nothing earth shatteringly superior available at the time.

I really just wanted to get a starting place from which to negotiate. I'm happy to hear that you got them down to 3.5. That sounds pretty reasonable to me! Anyone else care to comment?

[dharo1]

I'm in Texas and dealer recommended OC also because of taxes and blah blah blah (I didn't pay much attention).. Car gets here next week. I need to make up my mind.

[Scotlac]

Yeah, same thing here. He said that was the way he had financed his car blah blah blah......

It seems like there's an awful lot of blah blah blah involved in purchasing a car.

[dharo1]

Unfortunately it's the only dealer in 300 miles or more, so they feel they have the upper hand.

[Scotlac]

Is it possible to call BMW Finance ahead of time and review all of the different options? My car should be here in 7-10 days and I would like to have made a decision about which financing I'm going to use before I sit down with the finance guy at delivery.

I called him the other day and he didn't seem overly willing to discuss these options prior to the day of sale.

[Desert Guy]

Originally Posted by Scotlac

Is it possible to call BMW Finance ahead of time and review all of the different options? My car should be here in 7-10 days and I would like to have made a decision about which financing I'm going to use before I sit down with the finance guy at delivery.

I called him the other day and he didn't seem overly willing to discuss these options prior to the day of sale.

I locked in my lease terms on the day the dealer took my order (March 4). I figure that once the car that I've been waiting for all those weeks is sitting right there ready to be driven home, any will power (and thus leverage) that I had would be lost.

Don't wait for delivery day, if at all possible!

[Scotlac]

Originally Posted by Desert Guy

I locked in my lease terms on the day the dealer took my order (March 4). I figure that once the car that I've been waiting for all those weeks is sitting right there ready to be driven home, any will power (and thus leverage) that I had would be lost.

Don't wait for delivery day, if at all possible!

Thanks!

I'm happy to know that is a possibility! I'll give them a call tomorrow to try and set something up.

[Scotlac]

Originally Posted by Desert Guy

I locked in my lease terms on the day the dealer took my order (March 4). I figure that once the car that I've been waiting for all those weeks is sitting right there ready to be driven home, any will power (and thus leverage) that I had would be lost.

Don't wait for delivery day, if at all possible!

So, my CA talked to the finance guy and according to him they don't like to do anything on the financing until the day the car is delivered. I'm sure that is so they can take advantage of the fact that you're chomping at the bit to get your hands on your new baby.

I told my CA to have the finance guy call me directly but so far I haven't heard anything. Anyone have an argument that I can use to get these guys to nail down some numbers prior to the delivery date?

[BEM-S4]

Originally Posted by Scotlac

So, my CA talked to the finance guy and according to him they don't like to do anything on the financing until the day the car is delivered. I'm sure that is so they can take advantage of the fact that you're chomping at the bit to get your hands on your new baby.

I told my CA to have the finance guy call me directly but so far I haven't heard anything. Anyone have an argument that I can use to get these guys to nail down some numbers prior to the delivery date?

Call a few dealers within a reasonable distance. Get a good deal. Call your dealer and tell them unless they can beat this and lock it in now you're walking. Then hang up the phone and wait for them to get back to you. My deal has been locked in since Jan and my car isn't here yet.

[SuitedUp]

Same, locked in a deal when ordered, and they said if the rate goes down when the car gets here, we can switch to the lower one.

[Scotlac]

Thanks guys!

I REALLY hate playing games and these guys are starting to work my nerves.

[Gaviin]

Yeah just to back up what's been said... when i placed my order in late March, they did a credit check and locked me in at the March rate. April turned out to be the same as March, but if May's rate goes down, they'll switch me to that. If it goes up, I'm still good with the March rate.

Sounds like your dealer is being pretty lame.

[Scotlac]

Originally Posted by Gaviin

Sounds like your dealer is being pretty lame.

Indeed!

Had I known what I know now at the time I ordered the car I would have definitely shopped around a little more. At this point the car is scheduled to be here in a week or so and if there's any way to make this work I want to do that. However, I am not opposed to walking away if they keep this nonsense up.

[hellrotm]

Originally Posted by Gaviin

Unless TX also would charge you tax again if you chose to buy at the end of the lease period, which is what IL does... then OC might still be better.

This is exactly what happens in TX. It you lease a car you pay tax on full purchase price. Then if you buy it out at the end of the lease, you pay tax again. Double taxation.

[hellrotm]

I know owners choice is only available in Illinois and Texas. So little information on bmw site and forums about owners choice.

Are you allowed to just turn in the car, like at the end of a lease?

According to Laurel BMW that is an option:

http://www.laurelbmw.com/Owners-Choice

[Gaviin]

Yep, you can turn it in, just like a lease.

[furii]

so with owner's choice is there anything you're not allowed to do to the vehicle? nothing major, but for instance i'm interested in putting in a hardwire for a valentine one. maybe doing tint. etc.

[BEM-S4]

Originally Posted by furii

so with owner's choice is there anything you're not allowed to do to the vehicle? nothing major, but for instance i'm interested in putting in a hardwire for a valentine one. maybe doing tint. etc.

That stuff is all fine, whatever you can do with a lease you can do with owner's choice. Tint, cosmetic stuff like M Performance grilles, etc.

[furii]

cool, i figured it wasn't a problem but figured i'd ask. i'm a little surprised the hardwiring is allowed on a lease. obviously being in chicago that isn't really a route that makes sense to take.

[BEM-S4]

Originally Posted by furii

cool, i figured it wasn't a problem but figured i'd ask. i'm a little surprised the hardwiring is allowed on a lease. obviously being in chicago that isn't really a route that makes sense to take.

Do the mirror tap route you can remove in 30 seconds at turn it if you want, but I have turned in every single car I have ever had with a hardwire radar and never had a problem.