Question:
I disagree.
OK
Response:
Agreed. But usually when anyone says "below prime" these days, they are referring to a quoted rate,
Nah, as I said before, when one speaks of "prime rate" I don’t know of anyone who suspects they are speaking about consumer rates. Because consumer rates can vary from bank to bank, while BoC or Fed Res,’s prime rates are set for all. So if you say below prime you are speaking about below the set rate. If you say below 1st Bank’s prime you are speaking about below 1st Bank’s rate for bestest customer. Which very well may not be below Vectra Bank’s prime rate. which is NEVER going to be the BofC Prime Rate. They never say they got their mortgage at the Bank of Montreal Prime less 1%. It’s more a question of common parlance than semantics.
Not at all because without knowing which banks prime you are referring to it is a meaningless comparison. It is true that with the current low prime rate consumer primes are about the same, but in times when the prime is higher (which is 98% of recorded adjusted interest history) there is a much more competitive set to what individual banks charge their bestest customers. It is for that reason that saying you were below prime means below central bank prime, and all other "below prime" comments must qualified by which consumer banks prime you are below. It really is a matter of semantics.
Response:
Agreed. But usually when anyone says "below prime" these days, they are referring to a quoted rate, Nah, as I said before, when one speaks of "prime rate" I don’t know of anyone who suspects they are speaking about consumer rates.
I disagree. No one is goin to say that they negotiate a rate of prime +/- something and think that "prime" is the Fed discount or overnight rate, which is way way lower than anything a bank would charge. I checked and found this about the Fed, just in case I was wrong about the semantics in the US vs Canada. From this description it should be easy to see that "prime" only applies to the bank’s "prime" rate, since it seems that the Fed calls them "discount" and "overnight" rates. It would be more confusing in Canada, where these rates (rate) are/is called simply called the BofC prime – equivalent to the Fed overnight rate. With so many different benchmark interest rates, it can all get a little confusing. The prime rate shouldn’t be confused with the discount rate – the rate at which the Federal Reserve lends money to banks. Nor should it be mistaken for the federal funds rate - the overnight interest rate at which banks lend money to each other. Fed Chairman Alan Greenspan and crew directly control the discount rate, and set targets for the fed funds rate. (When you hear that the Fed has raised or lowered interest rates, what its policymaking committee has actually done is reset its fed funds target.) If you say below 1st Bank’s prime you are speaking about below 1st Bank’s rate for bestest customer. Which very well may not be below Vectra Bank’s prime rate.
Correct. – Hide quoted text — Show quoted text – which is NEVER going to be the BofC Prime Rate. They never say they got their mortgage at the Bank of Montreal Prime less 1%. It’s more a question of common parlance than semantics. Not at all because without knowing which banks prime you are referring to it is a meaningless comparison. It is true that with the current low prime rate consumer primes are about the same, but in times when the prime is higher (which is 98% of recorded adjusted interest history) there is a much more competitive set to what individual banks charge their bestest customers. It is for that reason that saying you were below prime means below central bank prime, and all other "below prime" comments must qualified by which consumer banks prime you are below.
You have just enought knowledge to make a strong (but wrong) arguement. It really is a matter of semantics.
It’s dollars and cents moron, not words.
Response:
In Canada they are currently offering 3.30% for all 3 series.
– Hide quoted text — Show quoted text – The idea of having you go through their "Loan" process is to get the nice person in finances to sell you floor mats, lo-jack & an extended warranty, BESIDES trying to sell you their loans. Man, you guys are stuck with some real crappy dealers. Ralph Schomp in Denver, where I have purchased (and leased one) my last 3 Bimmers doesn’t even ask you to go to their finance office. We cover the financing details on the phone, and the paperwork is waiting with the salesperson when they deliver the car. No attempt to sell me anything else at all. Of course this only works if you are familiar with the financing details and potential pitfalls. Sometimes for those who don’t really understand all that it is better to go into a loan office and ask a bunch of questions, about every single line item, before signing the deal. Personally, I have had good luck with BMWFS, received extremely competitive rates, been offered great customer service, even to the point where they refunded a lease payment due to overlapping of the old lease extension and the delivery of a new purchase and had zero problems with them.
Response:
Whoever told you that 3.3% was below prime was just kidding around. Oh really?
Yes, really. What you are showing are secondary rates, all of which are, at least, second tier lends. Prime Rate is the rate upon which that money is loaned in the first place. Canada’s Prime rate is established by your central bank…Bank of Canada, the equivilant of our Federal Reserve, This is the rate at which Canadian banks loan money to each other (further defines by the term of the loan..overnight rates are generally best) and is the rate upon which all other consumer rates are, if not based then at least centralized. Hence the term "Prime Rate". Individual banks may choose to call their current lowest based rate "prime", but of course they are not Prime Rate at all. Effectively it is not good business for consumer loans to carry interest rates below the Prime, as identified by the central bank….because they are then loaning money for less than it cost them to borrow the money in the first place. http://www.bankofcanada.ca/en/interest-look.htm Canada’s Prime rate is currently running about 2.3%.
Response:
Hold on everyone. "Prime Rate" is like Prime Rib. It depends on where you get it. When used as an economic indicator, the "prime" rate is The Bank of Canada’s official rate (or key policy rate) is the Target for the Overnight Rate, which is the midpoint of the Bank’s operating band for overnight financing. The official rate was formerly the Bank Rate, which is the upper limit of the operating band. While this rate is the official "marker" don’t ever think you will see any financial institution offering anything below THIS prime rate. They set their own prime rate, then discount to that, not the BofC prime.
Response:
Hold on everyone. "Prime Rate" is like Prime Rib. It depends on where you get it.
Of course, there is no confusion on that point. The point is that there isn’t anyone I know of who would consider a mention of "prime rate" to be anything other than a reference to the one established by the central bank as the rate banks, and/or other lending institutions, shall charge each other. All other primes (consumer primes) are identified by which bank is offering it, since no bank is held to a single rate when setting the lowest rate for their best customers. If someone says "lower than prime" that means lower than the central bank’s prime, which as you say…ain’t gonna happen. Sometimes, semantics do matter :^)
Response:
The idea of having you go through their "Loan" process is to get the nice person in finances to sell you floor mats, lo-jack & an extended warranty, BESIDES trying to sell you their loans.
Man, you guys are stuck with some real crappy dealers. Ralph Schomp in Denver, where I have purchased (and leased one) my last 3 Bimmers doesn’t even ask you to go to their finance office. We cover the financing details on the phone, and the paperwork is waiting with the salesperson when they deliver the car. No attempt to sell me anything else at all. Of course this only works if you are familiar with the financing details and potential pitfalls. Sometimes for those who don’t really understand all that it is better to go into a loan office and ask a bunch of questions, about every single line item, before signing the deal. Personally, I have had good luck with BMWFS, received extremely competitive rates, been offered great customer service, even to the point where they refunded a lease payment due to overlapping of the old lease extension and the delivery of a new purchase and had zero problems with them.
Response:
- Hide quoted text — Show quoted text – Hold on everyone. "Prime Rate" is like Prime Rib. It depends on where you get it. Of course, there is no confusion on that point. The point is that there isn’t anyone I know of who would consider a mention of "prime rate" to be anything other than a reference to the one established by the central bank as the rate banks, and/or other lending institutions, shall charge each other. All other primes (consumer primes) are identified by which bank is offering it, since no bank is held to a single rate when setting the lowest rate for their best customers. If someone says "lower than prime" that means lower than the central bank’s prime, which as you say…ain’t gonna happen. Sometimes, semantics do matter :^) Agreed. But usually when anyone says "below prime" these days, they are referring to a quoted rate, which is NEVER going to be the BofC Prime Rate. They never say they got their mortgage at the Bank of Montreal Prime less 1%. It’s more a question of common parlance than semantics.
Right! What tech27 said.
Response:
– Hide quoted text — Show quoted text – Hold on everyone. "Prime Rate" is like Prime Rib. It depends on where you get it. Of course, there is no confusion on that point. The point is that there isn’t anyone I know of who would consider a mention of "prime rate" to be anything other than a reference to the one established by the central bank as the rate banks, and/or other lending institutions, shall charge each other. All other primes (consumer primes) are identified by which bank is offering it, since no bank is held to a single rate when setting the lowest rate for their best customers. If someone says "lower than prime" that means lower than the central bank’s prime, which as you say…ain’t gonna happen. Sometimes, semantics do matter :^)
Agreed. But usually when anyone says "below prime" these days, they are referring to a quoted rate, which is NEVER going to be the BofC Prime Rate. They never say they got their mortgage at the Bank of Montreal Prime less 1%. It’s more a question of common parlance than semantics. – Hide quoted text — Show quoted text –
Response:
- Hide quoted text — Show quoted text – Ok, so when companies like Audi are offering 1.9% and 2.9% financing deals, the best that BMW could offer me is 4.9%, on a 60 month term, with me putting $20,000 down? My credit score is over 720. Even Porsche told me they could do 3.9%. What are others’ experiences? Randy I just scored mine with 3.3% financing from BWM Canada) on a 48 month term which is below the prime rate here. Whoever told you that 3.3% was below prime was just kidding around.
Oh really? I can’t say someone told me as I was able to figure it out all on my own. The prime rate here is currently sitting at 3.75% which would make 3.3% below prime. http://www.moneysense.ca/rates/prime_rates/index.jsp The only prime rate listed there which is below 3.3% is from the Bank of Canada and only financial institutions can borrow from there. Cheers.
Response:
- Hide quoted text — Show quoted text – I had a very frustrating experience with a California BMW dealer. They force you to go through their financial loan process, even if you have the funds through another bank. BMW Finance rates are relatively high. Best thing I found is to go through a credit union or other financial institution to pay-off the BMW loan. Many banks/credit unions are offering new auto-loans in the 3 – 4% range. I saw an article recently that stated that the finance arms of car manufacturers are where they are making most of their money. When LIBOR and prime rates are 1% or so, they can make a lot at 4-5%. Don’t put up with it – walk out. Floyd
That’s exactly what I did — I walked out on the dealer in Mountain View, CA. I then went to another dealer in San Jose, CA (just 20 minutes away) and was able to get satisfactory (although not great) service. At least they didn’t say I MUST fill out a BMWFS loan application, even if I wasn’t planning on financing through them (which is what the Mountain View, CA dealer did).
Response:
Ok, so when companies like Audi are offering 1.9% and 2.9% financing deals, the best that BMW could offer me is 4.9%, on a 60 month term, with me putting $20,000 down? My credit score is over 720. Even Porsche told me they could do 3.9%. What are others’ experiences? Randy I just scored mine with 3.3% financing from BWM Canada) on a 48 month term which is below the prime rate here.
Whoever told you that 3.3% was below prime was just kidding around.
Response:
I had a very frustrating experience with a California BMW dealer. They force you to go through their financial loan process, even if you have the funds through another bank. BMW Finance rates are relatively high. Best thing I found is to go through a credit union or other financial institution to pay-off the BMW loan. Many banks/credit unions are offering new auto-loans in the 3 – 4% range.
I saw an article recently that stated that the finance arms of car manufacturers are where they are making most of their money. When LIBOR and prime rates are 1% or so, they can make a lot at 4-5%. Don’t put up with it – walk out. Floyd
Response:
Force you ???? I would be walking and ask the next dealer if you have to go through the same process. If so I would be buying used. Greg
– Hide quoted text — Show quoted text – Ok, so when companies like Audi are offering 1.9% and 2.9% financing deals, the best that BMW could offer me is 4.9%, on a 60 month term, with me putting $20,000 down? My credit score is over 720. Even Porsche told me they could do 3.9%. What are others’ experiences? Randy I had a very frustrating experience with a California BMW dealer. They force you to go through their financial loan process, even if you have the funds through another bank. BMW Finance rates are relatively high. Best thing I found is to go through a credit union or other financial institution to pay-off the BMW loan. Many banks/credit unions are offering new auto-loans in the 3 – 4% range.
Response:
The other nice thing about the blank check, is that to the dealer, you’re negotiating with cash.
I see people say this all the time as if it is an advantage to the buyer, but I think the concept is outdated. These days, dealers prefer to get your business in both the sale and also the financing. Especially any of the the big car manuafcturers that have their own in-house finance departments, of which BMW is one. It seems to me that the best way to negotiate for a "cash" deal nowadays would be to tell them that that you will be financing (but not with who) and insist on talking total price, not monthly payments. Some will be happy to do that because they will think that they can up your finance rate a percent and make back some of the amount that they discount. Then after you agree to a price, let them know that you will be financing elsewhere. If they seem disappointed tell them the rate you got outside and see if they can match it or do better. If they retract the low price walk away. It means they were going to try and screw you on the rate. -Fred W
Response:
Ok, so when companies like Audi are offering 1.9% and 2.9% financing deals, the best that BMW could offer me is 4.9%, on a 60 month term, with me putting $20,000 down? My credit score is over 720. Even Porsche told me they could do 3.9%. What are others’ experiences? Randy
Response:
Ok, so when companies like Audi are offering 1.9% and 2.9% financing deals, the best that BMW could offer me is 4.9%, on a 60 month term, with me putting $20,000 down? My credit score is over 720. Even Porsche told me they could do 3.9%. What are others’ experiences? Randy
I had a very frustrating experience with a California BMW dealer. They force you to go through their financial loan process, even if you have the funds through another bank. BMW Finance rates are relatively high. Best thing I found is to go through a credit union or other financial institution to pay-off the BMW loan. Many banks/credit unions are offering new auto-loans in the 3 – 4% range.
Response:
Ok, so when companies like Audi are offering 1.9% and 2.9% financing deals, the best that BMW could offer me is 4.9%, on a 60 month term, with me putting $20,000 down? My credit score is over 720. Even Porsche told me they could do 3.9%. What are others’ experiences? Randy
I just scored mine with 3.3% financing from BWM Canada) on a 48 month term which is below the prime rate here. Cheers.
Response:
The idea of having you go through their "Loan" process is to get the nice person in finances to sell you floor mats, lo-jack & an extended warranty, BESIDES trying to sell you their loans.
Response:
Randy, I would forget financing through the dealer and go to Capital One Finance online. http://www.capitaloneautofinance.com/Public/Landing/Affiliate/Default… They will pre-approve you, and send you a blank check that you write the loan amount in for up to what you are approved for. With them, it doesn’t really matter what you intend to put down either. Plus, you put the dealer in a competitive position to win your finance business to, and get them to stop jacking the rates around. I got 3.8% for a pre-owned car for 36 months. As a rule, I do not finance beyond 36 months, so your mileage may vary
The dealer could do 3.9 %. I financed my ‘98 z3 with BMW without any issues over the life of the loan. The other nice thing about the blank check, is that to the dealer, you’re negotiating with cash. Maybe you already operate this way, but if you haven’t tried it, make an offer –and when they counter, politely thank them and say you’ll think about it, and then get ready to walk out. I’m betting they’ll see things more your way. Do it as many times as you need to. It works miracles to swing the price in your favor. Work with the dealer toward the end of the business day. If s/he has sold some cars that day, s/he will feel that they’re on a roll and want to keep the momentum going. If they haven’t sold any cars that day, the sun is shining on you
Just today, BMW raised their finance rates a point across the board. I learned that today because I was at the dealer to pick up my 2001 740iL today
I closed the deal last week when their rates (certified pre-owned used) were 3.9% for a 36 month loan. Have fun! Fred " Ok, so when companies like Audi are offering 1.9% and 2.9% financing deals, the – Hide quoted text — Show quoted text – best that BMW could offer me is 4.9%, on a 60 month term, with me putting $20,000 down? My credit score is over 720. Even Porsche told me they could do 3.9%. What are others’ experiences?
Response: