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BMW 5-Series (G30) Forum G30 Pricing, Ordering, Tracking, European Delivery 530e Federal tax incentive

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      03-23-2017, 09:32 AM   #1
cobra1100
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530e Federal tax incentive

Does anyone have any idea when BMW will likely release the federal tax incentive credits?? I have a potential allocation and I am ready to order but I would be so mad at myself if I didn't wait a little bit longer to get the incentive. 3000 lease cash is a lot!

I know it's coming soon because of this website I found, but when?? Anyone have any insider info?

http://www.ct.gov/deep/cwp/view.asp?a=2684&q=561424
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      03-23-2017, 10:00 AM   #2
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I just heard back from fueleconomy.gov. They wrote me the following.

Hello Andrew,

Thank you for contacting us. Unfortunately I don't have a good answer for you. The IRS is the official source for all Federal Tax information and they are responsible for determining eligibility and will ultimately accept/process the tax credits. The information on our website comes from the IRS website so it must be posted on the IRS website before we can post it. You can see the IRS web page for BMW at: https://www.irs.gov/businesses/30d-n...-north-america
The rules used for determining the amount of tax credit are explained at: https://www.irs.gov/businesses/quali...ter-12-31-2009

We haven't received data for the 2018 BMW 530e from the EPA yet so EPA certification probably hasn't been finalized. That will have to be completed and then BMW must submit all the paper work to the IRS before the IRS can set the amount and post it on their website. Unfortunately, we have no way of knowing when all that will be completed. The Fuel Economy Website is produced at Oak Ridge National Laboratory with data provided to us by the EPA (https://www.epa.gov/vehicle-and-fuel-emissions-testing) . We are not involved with vehicle testing and have no way of knowing when vehicles will be certified.

Aside from the Federal tax credits, there are also state and local incentives that may apply depending on where you live. If you have not done so already, we encourage you to visit the Department of Energy's Alternative Fuels Data Center: http://www.afdc.energy.gov/laws/state
I hope this is at least somewhat helpful.

Sincerely,

www.fueleconomy.gov
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      03-24-2017, 11:17 AM   #3
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Your link is for the State of CT incentives. The Federal list was last updated last Oct. They don't revise this list whenever a new car is certified, so it's up to the next publication of revised data. Could be April, if it's every 6 months. Credit will likely be the same as for 740e and X5e, since the battery packs are the same; so about $4600--well worth waiting for. Leasing earlier may not be retroactively credited by BMW. You can purchase with full expectations of getting it, as tax credits will apply to the whole year. Incidentally, the tax credit could go up to $7500 if BMW were to increase the battery capacity from approximately 10Kwh to 15 KWh. The next round of battery improvements should see close to that with no increase in physical size.

Last edited by ted99; 03-29-2017 at 09:39 AM.. Reason: addl info
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      05-20-2017, 01:10 PM   #4
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The IRS published it's latest update on 19 May, 2017 and the credit for the 530e is $4668.00. Should see much better lease rates for the 530e, now, from BMW Credit.
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      06-07-2017, 09:41 AM   #5
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More info. If you purchase the 530e, you file for the tax credit and you get the full amount. If you lease, BMW finance gets the tax credit and gives you a $3000 capital cost reduction. I guess the $1668 is BMW Finance's commission for floating you before they pay their taxes.
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      06-28-2017, 04:28 PM   #6
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Quote:
Originally Posted by ted99 View Post
More info. If you purchase the 530e, you file for the tax credit and you get the full amount. If you lease, BMW finance gets the tax credit and gives you a $3000 capital cost reduction. I guess the $1668 is BMW Finance's commission for floating you before they pay their taxes.
Where did you get the info regarding the $3000 cap cost reduction on a lease? I talked to my dealer and they hadn't received any approval from BMW to credit that yet. My sales guy even called BMW NA and BMW financial and they said no credit on anything other than the i3 and the i8.
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      06-29-2017, 10:58 AM   #7
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It was on the BMW configurator in the "leasing cost" when I was looking earlier. It didn't come out until the 530e was listed on the IRS credit sheet. It was shown as a capital cost reduction.
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      06-29-2017, 02:57 PM   #8
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Quote:
Originally Posted by ted99 View Post
It was on the BMW configurator in the "leasing cost" when I was looking earlier. It didn't come out until the 530e was listed on the IRS credit sheet. It was shown as a capital cost reduction.

I just called BMW Financial myself and they confirmed that there are no BMW approved rebates/cap cost reduction/etc for the 530e, just the i3/i8. I'm really interested to know how these guys posting on here got the credit. The dealers don't own the title, so I have a hard time believing any dealer would extend a discount/cap cost reduction on the fed tax rebate if they weren't guaranteed to be reimbursed by BMW NA, which at the moment, is not going to happen. If anyone has a link to data proving otherwise, or scanned copies of an order form indicating the discount, I'd really appreciate you guys posting it/them.

Last edited by VandalF16; 06-29-2017 at 04:33 PM..
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      07-06-2017, 10:14 AM   #9
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Quote:
Originally Posted by VandalF16 View Post
I just called BMW Financial myself and they confirmed that there are no BMW approved rebates/cap cost reduction/etc for the 530e, just the i3/i8. I'm really interested to know how these guys posting on here got the credit. The dealers don't own the title, so I have a hard time believing any dealer would extend a discount/cap cost reduction on the fed tax rebate if they weren't guaranteed to be reimbursed by BMW NA, which at the moment, is not going to happen. If anyone has a link to data proving otherwise, or scanned copies of an order form indicating the discount, I'd really appreciate you guys posting it/them.
Looks like you are right. If you use the "leasing specials" on a my dealer's website, the e is about a hundred dollars/ month more than the regular i. That says two things: 1) lower residual for e, and 2) no tax credit factored in. Says to me that if one is buying, the e is a no-brainer over the i. If you are leasing, the i is a no-brainer over the e. I just traded my i3 in on a 330e because of the terrible ride of the i3 and the terrible tires. The limited electric-only range of the 330e (which is the same as the 530e) means the car is really a very good hybrid, not an electric car. The better gas mileage of the 530e over the 530i will not make up for the difference in leasing cost for most people. However, if you are purchasing, the Federal Tax Credit of over $4K, plus the better gas mileage makes the 530e a much better buy; even if you don't have a charger because it then becomes a very good hybrid, rather than a plug-in hybrid. The price for the 530e is about the same as the 530i, so the tax credit makes the 530e cheaper than the 530i, if you are purchasing. I don't understand why BMWNA is not factoring in the tax credit (which goes to them if leasing) for 530e leasing deals. The better gas mileage for the 530e would help a lot in their CAFE calculations if they sold more and if they leased for less than the 530i, they would sell more. I wonder if battery manufacturing supply limits the number of 530e cars they can sell?
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      07-18-2017, 09:19 AM   #10
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My Sales advisor tells me that BMW now has an "Owner's Choice" "Leasing" program. I put that in quotes because it is not actually a lease. You get title to the car and make payments as if it were a lease, but BMW has a "guaranteed" buyback price at the end of the term. If you pass inspection, you just turn it in as if it were a lease. If you opt to keep, you have a balloon payment equal to the residual. I bet the end of term inspection is a real doozy. Advantage is that one can claim the Federal/State tax credits on one's own tax return since you have title to the car.
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      07-19-2017, 02:15 PM   #11
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Quote:
Originally Posted by ted99 View Post
My Sales advisor tells me that BMW now has an "Owner's Choice" "Leasing" program. I put that in quotes because it is not actually a lease. You get title to the car and make payments as if it were a lease, but BMW has a "guaranteed" buyback price at the end of the term. If you pass inspection, you just turn it in as if it were a lease. If you opt to keep, you have a balloon payment equal to the residual. I bet the end of term inspection is a real doozy. Advantage is that one can claim the Federal/State tax credits on one's own tax return since you have title to the car.
Interesting, I've never heard of it. I'll ask my CA and see what he says. Thanks for the heads up.
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      07-20-2017, 10:14 AM   #12
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My CA said the only significant downside was that the "owner's Choice" did not have total loss gap coverage. But, for me with USAA, they offer a rider for a small amount that bumps the payout for total loss to avg retail + 30% if I own the car--won't offer this on regular leases.. I wonder if this owner's choice is a Texas-only thing. Leasing rules here are interesting. For instance, if I do a one-payment lease, there is no sales tax (one-payment not available on owner's choice).
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      07-29-2017, 08:50 PM   #13
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Quote:
Originally Posted by ted99 View Post
My CA said the only significant downside was that the "owner's Choice" did not have total loss gap coverage. But, for me with USAA, they offer a rider for a small amount that bumps the payout for total loss to avg retail + 30% if I own the car--won't offer this on regular leases.. I wonder if this owner's choice is a Texas-only thing. Leasing rules here are interesting. For instance, if I do a one-payment lease, there is no sales tax (one-payment not available on owner's choice).
I believe that Owners Choice financing is only offered in those states that apply sales tax to the total price of the car at purchase rather than to the lease monthly payment. By taxing the entire cost of the vehicle, and then including that in the capital cost of the lease, it makes leasing much less attractive than taxing just the monthly payment.
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      07-30-2017, 03:31 PM   #14
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Originally Posted by dkerr View Post
I believe that Owners Choice financing is only offered in those states that apply sales tax to the total price of the car at purchase rather than to the lease monthly payment. By taxing the entire cost of the vehicle, and then including that in the capital cost of the lease, it makes leasing much less attractive than taxing just the monthly payment.
Yeah we ran the numbers for lease vs owners choice and I'm going to stick with the lease. For my situation it makes more sense, but YMMV depending on the state you live in and how often you want to change cars, etc.
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      07-31-2017, 10:05 AM   #15
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For me in TX, the trade off is do a single payment regular lease and have the sales tax waived by BMW or do an owner's choice, pay sales tax, collect the tax credit, and pay a little extra per month for "gap" insurance on my car policy. At 6% sales tax and $4700 tax credit, the break even is single-pay lease for cap cost of greater than $78K and Owner's choice for any lower cap cost. Since I like to have the latest tech and get a new model after 2 1/2 to 3 years, I think lease is the best choice for me. I made the mistake of purchasing a 2014 i3 and ate a huge loss after 3 years.
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      11-27-2018, 09:38 PM   #16
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Bumping an old thread.
Has BMWFS changed their stance on providing the Federal credit to the lease price of the vehicle?
I'm in discussion with a dealer now and they know nothing regarding this tax credit.
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