For those who financed through MINI/BMW, how long before you received paperwork, or was available online at "My MINI"

I remember in 2013, it took maybe 4 days.

 

9 days, showed up in my MINI account.

 

I was hoping they would forget to send the bill.

 

Never worry about the money you owe other people. They will worry about it for you. If you forget to pay them, they will remind you

 

Its not that. I wanted to be a step ahead of what happened a few years back.

When I bought my Lexus in 2013, I filled out a Lexus/Toyota loan application for 0.9%
Yes Virginia, I have an 875 auto loan FICO score!!
The loan was assigned to WellFargo Dealer Services, granted, it was 0.9%, it pissed me off
that it was
A: assigned elsewhere,
B: It was The Wells Fargo Mafia,
C: The dealer probably got a better
kickback, but must not have been much at that rate.

When doing car loans, I much prefer the manufacturer.

My 2013 was 0.0%, and my 2017 is 0.9% from BMW Financial. Plus the $500 loyalty cash!!!

 

BMWFS is the captive lender for BMW/MINI. They have their own bank.

Dealers place loans on MINIs outside of BMWFS if there are credit issues and the customer is looking at a rate higher than the special rate reserved for well-qualified borrowers. If a customer isn't top tier or there isn't a special in-house factory offer, dealers will shop for a lender who pays them the most to originate the loan.

I am told that, on the special rate deals for leases, dealers get nothing for writing the lease, and they get only a tiny fee for writing loans at the special below market rate.

Some other brands use third party captive lenders. For example, Jaguar Financial and Land Rover Financial is really Chase. If you do a factory sponsored subvented special rate deal, Chase carries the paper and services the loan/lease. Many brands have similar arrangements.

Most contracts give dealers the right of assignment, which is why I always suggest that one should never take delivery of a new car -- never drive it off the lot until there is written confirmation of lender approval. If it's important to a customer to know where the loan is placed either secure independent financing or wait until the financing is processed and the lender is confirmed prior to taking delivery. Dealers hate that.

 

Hence the issue with my Lexus loan being assigned to Wells Fargo.
What Im wondering, is what is the amount Wells Fargo kicked back to the Lexus dealer.
The loan was only .09% @48 months. Less than $700 in interest!!

 

Possibly Lexus paid Wells. On subvented, below market deals where the manufacturer buys down the rate, sometimes the lender is paid to service the loan.

Or, Wells may have bought the debt to bundle it. That was a common practice -- putting lipstick on the pig -- wherein loans with high credit ratings were bundled with lower quality debt and securitized and then resold in the marketplace as a type of bond. It went on even after 2007/8, and still happens.

There is a lot of low quality debt used to finance car deals for people with marginal credit -- with 72 ~ 84 month maturity. To make it smell better, high quality debt is blended in. That's one reason the super-low interest loans are made available, so that top tier FICO debt can be snagged and.... blended.