HELP.....Dealer informed me about an///M2 Allocation

[MdMcoupe]

2 months ago I was calling dealers in my area to see if they had any M2's in the showroom, of course they all said no. So then I called dealers in the tri-state area, again no, but a couple dealers took my name and number.

Yesterday, out of the blue I get a phone call from one of the dealers stating he has an allocation for an M2 to be built in November and i was at the top of the list.

So I called him back, and my first question was "what is the markup? I am not interested in paying over the sticker price." To my absolute surprise he told me NO markup.
So I set up an appointment for this Friday to discuss the build and leave a deposit.




Here's where I need some guidance. I have never bought a car brand new, and I am not familiar with allocation process at all.

The salesman said on Friday we will go over the build, do a credit check, and then talk to the "finance lady". I was planning on using my credit union and not financing thru BMW. My question would be: do I need to do a credit check and talk with the finance lady at the BMW dealership in order to leave my $1,000 deposit on the car? Can I just leave a deposit, and then get my loan thru my credit union sometime before the car is delivered? I am selling my truck and trailer, and was planning on using that money to put down on the M2. In total I was looking to put down ~20k, but I won't have that money ready on Friday for the finance lady.

Sorry if these seem like rookie questions. I'm just a little nervous as I don't know what to expect, and I really don't want to lose my opportunity to have a November build. Who knows they may laugh me and the misses out of the showroom, and ask me and my depoist to leave.

Thanks for any guidance.

[ben4bama]

You don't have to use their finance. They'd prefer it but not necessary. You think they wouldn't sell you the car if you paid cash instead of finance?

[MdMcoupe]

You don't have to use their finance. They'd prefer it but not necessary. You think they wouldn't sell you the car if you paid cash instead of finance?

Thanks man, yeah I get that.

I guess what I meant was, when I meet the salesman friday am I supposed to have my loan from the credit union already approved? Or can I just leave the deposit friday and have the financing straightened out at a later date?

[MarcoZandrini]

Having the loan approved when you meet with the salesman would be helpful, but not necessary. Obviously, you'll need to have a certified check in hand when you pick up the car.

[MdMcoupe]

Having the loan approved when you meet with the salesman would be helpful, but not necessary. Obviously, you'll need to have a certified check in hand when you pick up the car.

Thanks Marco.
This totally caught me off guard and I haven't notified my credit union yet.

I'll just see how this goes, and see if he lets me put a deposit down on Friday. Then I'll find time to sneak away from work and get the loan straightened out.

[RidgeBack]

Yeah, all you need is a $ deposit to hold the car.

Years ago my dealer took a $1K deposit from me on a hold for an E92 M3.

You're not buying the car now but rather when the car arrives (unless you're going to pick it up in Germany) at the dealership.

Therefore you don't need financing just yet nor does the dealership need to run a credit check.

*I don't know if all dealerships operate the same way but it would be stupid to have the loan approved now because anything can happen between now and the time you're ready (or not) to actually purchase the car. How long does a loan approval last anyways? I have no idea.

[timsev]

You should be able to call your credit union and get pre approved over the phone. Then they can email you a pre approval letter and you can take it to the dealer with the deposit. If you don't know your credit rating and debt/income ratio, you need to do this as you don't want to be surprised when the car arrives and you are scrambling to get financing. It will put you and the dealer at ease knowing that the deal is 100% good to go before they order a custom made car. Plus, it gives you leverage when the car arrives in case they can beat your credit union's interest rate.