[Pele96]

Hi everyone what does it mean when they add 20 basis points to .00165 MF?

Thanks,
Fernando Cuco

[Fugly M3]

I am guessing they are adding .20 of a percent. 100 basis points=1 percent, so 20 bps is .2 percent. to get the MF you divide by 24. so they are adding .00083 to the MF from that calculation. or .00165*24 is a base MF of 3.96% and they are increasing it to 4.16%. BTW, I think the base MF for this month is .00145, so if they are adding to .00165 they are really screwing you.

[Fugly M3]

btw if they are saying .00145 to .00165 is an increase of 20 bps, or .0002, it isn't because .0002*24 is .48% or 48 basis points. I don't know what exactly they are doing, but it sounds fishy

[Pele96]

Originally Posted by E46M54325Ci

btw if they are saying .00145 to .00165 is an increase of 20 bps, or .0002, it isn't because .0002*24 is .48% or 48 basis points. I don't know what exactly they are doing, but it sounds fishy

We got approved based on our credit score as standard plus so they said .00165

[Fugly M3]

so is that the final rate? meaning .0002 over .00145? if so that means that they are charging you more than 20 bps, they're calling it 20 bps but it's really 48, or about a half a percent. that's not a whole lot, but more than they are claiming. my guess is that they don't know what a basis point is.

[RPM90]

Originally Posted by Pele96

We got approved based on our credit score as standard plus so they said .00165

The MF that's listed everywhere on the web is the "buy rate".
This is for people with excellent credit scores.
Your credit score may not be so good, and thus they are charging you more.
It's just like a loan. If you have excellent credit, then you'll get the lower rates, and if you don't, then you pay more.
Sucks, but it's real.

As the BMW finance person to explain why you didn't get the buy rate.
If he/she says it's due to your credit score, then balk at the whole sale, and tell them you want the buy rate if they want the sale.
See what happens. It can't hurt. If they can't give you the lower rate, then you'll know what's up and go from there.

[Pele96]

Originally Posted by E46M54325Ci

so is that the final rate? meaning .0002 over .00145? if so that means that they are charging you more than 20 bps, they're calling it 20 bps but it's really 48, or about a half a percent. that's not a whole lot, but more than they are claiming. my guess is that they don't know what a basis point is.

BMW now has tiered finance when before it was the same rate not based on credit score.

[Fugly M3]

Originally Posted by Pele96

BMW now has tiered finance when before it was the same rate not based on credit score.

I know that, but my point is that if they said they were charging you only 20 basis points, or .000083, then hold them to that.

[Pele96]

Originally Posted by E46M54325Ci

I know that, but my point is that if they said they were charging you only 20 basis points, or .000083, then hold them to that.

Ahhh gotcha!!!

[jddssc121]

i always demand base rate. If they're adding something, it's to make money off you. I'd go to another dealer if they won't back down

[Pele96]

Originally Posted by jddssc121

i always demand base rate. If they're adding something, it's to make money off you. I'd go to another dealer if they won't back down

Thanks my brother.