lower car payments due to lower rates?

[A/J]

hope this isnt a silly q ...but has anyone managed to negotiate lower monthly contract payments in light of lower interest rates?

i havent checked ...but are the new contrcat rates better than say early last year?

( btw im aware this may be different in different countries.)

[aggie57]

Originally Posted by A/J

hope this isnt a silly q ...but has anyone managed to negotiate lower monthly contract payments in light of lower interest rates?

i havent checked ...but are the new contrcat rates better than say early last year?

( btw im aware this may be different in different countries.)

Interesting question. Reading posts from people in the US they seem to have quite different ways of financing cars to here in Australia. We have different models which have different tax considerations (no carbon tax yet though unlike you guys) but in the end the interest rate has less impact on the monthly payments than many people expect.

In fact you can often do a straight total cost sum over the life of a lease and it'll vary between finance companies despite everything else looking the same. You can have the same interest rate, the same deposit, the same term etc but different monthly payments and different final payment / residual.

So while that is not a direct answer to your (not silly) question the point is that in my experience interest rates are certainly not the only variable.

[matt beard]

Originally Posted by A/J

hope this isnt a silly q ...but has anyone managed to negotiate lower monthly contract payments in light of lower interest rates?

i havent checked ...but are the new contrcat rates better than say early last year?

( btw im aware this may be different in different countries.)

I'm not quite sure what you are asking, but when I financed my car -$60,000/3.9%/60 months, the monthly payment was $1100. Now that the rate has dropped to 2.9% and I haven't taken delivery yet my monthly payment will be $1075. Not a big difference per month, but a $1500 savings in all.

[A/J]

cheers 4 the replies guys....it did seem to me like perhaps it would be possible to request lower payments from bmw finance since the rates have dropped so much.....i mean mortgage payments have really seen an improvment so youd think that the same might happen 4 other types of finance....

i was thinking it might be worth playing the distressed finances card...do you think they would rather offer lower payments than have end teh contract...??

[gobuffs]

Are you saying you want to try to refinance with your creditor (i.e. you already have the car)? Or you are trying to buy the car and get the lowest possible rate?

[A/J]

already have the car was wondering abt refinanace, the contract is with bmw finance btw

[gobuffs]

Doubt you will get them to refi....but it doesn't hurt to ask.