Refinancing Your BMW: What You Should Know

One of the best feelings is getting a new BMW and enjoying it. Sometimes, though, for one reason or another, you might find that refinancing is on your mind. 

People refinance their auto loans all the time for a variety of reasons, including freeing up some money each month to put toward other expenses. 

Here are some things to expect if and when you decide to refinance your BMW.

Why Would You Refinance a Car Loan?

There are several reasons why people refinance, and everyone’s situation is different. Some of them include:

  • Lowering your monthly payment
  • Reduce the loan’s interest rate
  • Changing your loan’s terms
  • Buying out a current lease
  • Setting up an extended warranty
  • Various other reasons

Whether you’re looking to add an extended warranty or lower your monthly payment, there are options. And in some cases, you can reduce your payments to as low as $150 a month. Regardless of your situation, there’s an answer to when and why you should refinance.

When Is a Good Time to Refinance?

Is now a good time for you to refinance? This is a big decision and requires as much information as possible to make it a sound one. There are four primary indicators that now might be a good moment to make this decision.

Interest Rates Have Dropped

If interest rates have dropped for some reason by 2-3 percent since you received your car loan, it might be a good idea to refinance. A small percentage might not sound like much, but it can add up over the life of the loan. You can check periodically with your bank or look online to see current rates.

Your Financial Situation Has Improved

When your financial situation improves is another good reason to refinance. Two of the primary factors in deciding an auto loan rate include your credit score and your debt-to-income (DTI) ratio. If either or both of those factors improve, it could benefit you by leading to favorable terms for a refinanced loan.

You Didn’t Get the Best Offer Initially

Even if interest rates have stayed the same or your financial situation has remained the same, refinancing might still be a good option if you feel you could have received a better offer. If the offer you got was at 7 percent for one lender and others were lower, it might be a good idea to refinance.

You’re Having Trouble Keeping Up With Bills Each Month

One final time it might be good to refinance is if you are having trouble paying bills every month. Even if you cannot secure a lower interest rate or get the exact terms you want, it may still be beneficial to increase the length of your loan to reduce the cost of each monthly payment.

If you had a great offer on the original loan and are still struggling to make ends meet each month, you can consider negotiating on the original loan. This option increases the length of time you spend paying back your loan and increases the amount of interest you pay.

When Is a Bad Time to Refinance?

There are also times when you should not attempt to refinance your BMW. Again, four primary reasons determine whether it’s time to hold off or act.

You’ve Already Paid Off Most of the Original Loan

If you are nearing the end of your original loan, it might be best to hold off on refinancing if at all possible. Receiving a new loan will most likely increase the amount of interest you pay, since interest tends to be front-loaded.

Your Car Is Old or Has a High Amount of Miles

Cars depreciate exponentially once they are purchased. The likelihood of refinancing your car will decrease as it gets older and up in miles. Different lenders set rules on the age and mileage of the vehicle.

Fees Outweigh the Benefits of Refinancing

It is essential to read your initial loan agreement and check if any fees are associated with refinancing or making early repayments before your planned term. This could backfire and increase some of the cost in interest and the principal balance. Explore the expenses before planning to refinance.

You’re Looking to Apply for Credit Again Soon

If you plan to apply for credit again in the near future, refinancing is not the option for you. It negatively impacts your credit, and if you have plans to apply for a mortgage, loan, or credit card, refinancing might need to wait.

Refinance to Benefit Yourself

If you spent the time to find your dream BMW and purchase it, you should get to enjoy it. Think about refinancing if you want some benefits that can make your life a little easier. No matter the reason, just make sure you are informed about the decision you are making.

How Often Should BMW Owners Balance Their Tires?

Have you ever experienced a sudden odd vibration in your steering wheel, floorboard, or seats while taking your BMW for a spin? If the answer is yes, it’s a signal that your car’s tires need to be balanced. This can occur through normal day-to-day tire treadwear. After a while, your tires will experience changes in their weight distribution, which leads to unbalanced tires. While it’s not the most serious car issue, driving on unbalanced tires can lead to other problems.

Unbalanced tires can cause rough rides and create safety hazards. And if it’s not tended to promptly, the repairs can be costly. So, instead of pushing it aside, continue reading to learn how often you should balance your BMW’s tires and what can happen if you don’t.

How Can You Tell When It’s Time for a Balance?

When it comes to tire care, knowing how often the tires on your BMW should get balanced helps you get the most use of your tires and allows you to have a smooth, worry-free drive. Of course, if you notice something odd while driving, it’s always best to get a second opinion immediately before ignoring the problem. It’s always better to be safe than sorry.

Unlike other BMW maintenance issues that tend to hide until the situation gets out of hand, it’s easier to tell when you need to have your tires rebalanced. If you are experiencing heavy vibration in the steering wheel, it’s most likely your front tires. If you are experiencing heavy vibrations in the back seating, it’s most likely your rear tires. If there are vibrations throughout the car, all of your tires need to be balanced.

When there are no warning signs, a good rule of thumb is to get your tires rebalanced after every 3,000 to 5,000 miles driven. Another easy solution to this common problem is going ahead and having your tires rebalanced every other time your tires are rotated. Pairing the tire rotation with rebalancing is a quick and easy service that can potentially save you from spending money on costly repairs in the future.

How Does Balancing Benefit Your Car?

Tire balancing is one of the recommended maintenance services listed in your BMW’s manual for a reason. There are many benefits to having the wheels on your vehicle properly balanced. Tire balancing can ensure that you have:

  • A smoother ride: One of the many benefits is the smoother ride. If you’ve never experienced your tires being freshly balanced, the difference could surprise you.
  • Better gas mileage: Not only does balancing your tires improve the quality of your ride, but it can improve your gas mileage as well.
  • Extended tire life: Unbalanced tires can add unnecessary wear and tear to your tires. Having them balanced when needed prevents that from happening, which extends the life of your tires.
  • Safer ride: Overall, the most important thing to keep in mind is your safety. Having your tires balanced improves the safety and handling of your vehicle.

Having this regular maintenance done to your BMW goes a long way toward ensuring your vehicle and safety are in good standing.

What Can Happen If You Don’t Balance Your Wheels And Tires?

Now that we know how often the tires on our car should be balanced and the benefits of tire balancing, here’s what happens if you neglect unbalanced tires:

  • Impact on vehicle suspension: Over time, the vibrations from your unbalanced tires can have an impact on your vehicle’s suspension. Its job is to absorb the energy from things like bumps in the road. The added vibrations from your unbalanced tires can throw your vehicle suspension out of whack.
  • Uneven tread wear: When tires are unbalanced, they can develop dangerous bald spots and uneven tread wear, making it more difficult to control your vehicle. This also could lead to tire blow-outs.
  • Problems steering: The steering, especially at high speeds, will start to shake, which can get out of control and pose a serious hazard.
  • Poor fuel economy: You will notice a drop in fuel economy in your BMW if your tires are unbalanced. Your vehicle will end up using more gas, especially at higher speeds.

Tire Balancing: Don’t Neglect It

BMWs are one the most popular luxury car brands worldwide, so you need to make sure you take care of yours. With the proper maintenance, including wheel balancing, your BMW will run well and last for a very long time.

Top Factors to Consider Before Getting a BMW Extended Warranty

You’re likely here because you recently invested in a luxury BMW and are curious about how to keep your car protected and in great condition. What can you do to ensure your car keeps running as smooth and looking as good as the day you brought it home?

Looking into purchasing an extended warranty for your BMW might be an option. Luxury cars are an investment and can become expensive to fix if anything goes wrong. Below are some points on factors to consider on car extended warranties.

What Are BMW Extended Warranties?

BMW extended warranties are optional coverage plans that you can get on your car. These warranties can help minimize the total expenses that can accrue if your car would ever need to be fixed, have a part replaced, or if a random problem would occur with your car. 

Since newer 2021 BMWs can range from $35,000 to $130,000, their parts are going to be expensive as well to replace or fix, so it’s a good idea to review the benefits

There are different levels of warranty coverage, and the more components that are covered, the greater the cost. Levels include Platinum, Gold, and Powertrain Plus. If you bought a BMW from a BMW dealership, you likely received a factory warranty. Once this warranty is up, you will have the option to buy a BMW extended warranty.

Downsides of BMW Extended Warranties

In some cases, there are a few points to consider that may indicate an extended warranty might not be ideal for you:

  • May not cover all components: BMW extended warranties come in three different plans, which may or may not include exactly what you need covered. The Platinum plan covers most of the major components. But this plan can be pricey depending on your financial situation. These plans may not be in your current yearly budget, but they are something to consider since you made an investment in a luxury vehicle and parts can potentially be more expensive to fix without coverage.
  • May not cover specific procedures: The warranty plans may not cover the repair you need conducted. You must pay attention to the level of warranty plan you choose. You do not want to get in the situation where you paid for a warranty but find out your level of warranty does not cover the required service. Look for an exclusion list to find out what’s included and what isn’t.
  • Location: Depending on where you live, an official BMW dealership may not be conveniently located near you to take full advantage of maintenance or repair coverage.
  • You may not actually use it: The extended warranty options are similar to health insurance. You may not need to use it, but you have that sense of security there if you ever need to. You never know what might happen.

Advantages of BMW Extended Warranties

  • Peace of mind: Vehicle extended warranties provide peace of mind if your car breaks down or its performance lapses. When taking your car to a BMW dealer, the technicians that perform the work will be well-experienced with the BMW brand and are qualified to work on your car. The parts used will also be authentic BMW parts. This ensures that when your car needs to be fixed, you will be guaranteed to receive the highest-quality service for your high-quality vehicle.
  • Flexibility: BMW extended warranties have three plan levels to choose from. Each one is a different price, customized to what you would like to have covered on your vehicle. These warranties also come in different protection periods. You can choose the level and timeframe or milage that best fits how you use your automobile. These can cover your car for up to 7 years or 100,000 miles. These levels can save you a lot of money on any repairs that may be needed.
  • Roadside assistance: Any level of warranty comes with 24-hour BMW roadside assistance.
  • Better resale value: Last but not least, extended warranty coverage can help keep your luxury investment in great shape for a long period of time. And if you decide to sell your car and you have a warranty on it, it will increase the resale value.

The Benefits Are Valuable, but It’s Still a Wager

Being prepared is sometimes better than taking a wager and finding yourself stressed in an auto shop about the price tag of a repair job. Extended warranties can be valuable, but it all depends on how you use your car, your tolerance for risk, and whether you want to pay the amount required for minimal, intermediate, or total automotive peace of mind.

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