2017 U.S. Prices and Lease Changes

[Maplewood]

I started the process of ordering a 2017 today by visiting two dealers, one in MD and one in PA. Both told me they have ordering reservations available for delivery in 6 to 8 weeks. Here are the MSRP prices I was quoted by both dealers:
Base. $47450
Protonic Blue $550
Parking Assistant Package $1000
Technology/Driving Assistant Package. $2350. (Decrease from $2500)
Terra World. $2600
Destination and Handling. $995

Total MSRP on this car. $54945

I did not want the moonroof, so I don't know the price
I did not want Harmon/Kardon, but it is $800

One dealer offered a $1,000 discount, then took it back with bogus "fees".
The other dealer offered a $2,000 discount and only $135 in paper fees.

The biggest shock to me is that BMW HAS WITHDRAWN THE $7500 CREDIT ON A LEASED 2017. IT IS ONLY OFFERED ON THE 2016 AND ANY REMAINING 2015 MODELS. I was told that when those are gone, there will probably be incentives on the 2017, but that may be spring 2017. To get it, you must be a qualifying purchaser, who has paid at least $7500 in federal taxes in 2015.

 

[jadnashuanh]

Even if you have paid $7500 in US federal taxes, you may not get the full credit because the alternate minimum tax rules are likely to come into effect. It all depends on your total tax bill, but in reality, you need to have paid a fair amount more than that to get the full credit. Many people buying an i3 will qualify for the full amount, but you won't know until you run the numbers.

 

[Maplewood]

Thanks for the advice. I ran all the numbers and do qualify for the full $7500, plus an additional $2,000 in PA. However, I still decided to lease for 3 years. With the rapid changes in range and the oncoming Bolt and Model 3, I do not wish to own a potential technological albatross in 3 years. It could be like owning a very expensive cassette player right after CD's hit the market. If I am wrong, I always have the right to purchase it or lease an updated model. I looked at the prices of 2015 models on the used market and found them to already be at my predicted 53% residual in 3 years, and these are only two years old. If gas goes to $4 a gallon, I may be sorry, but I don't see it coming.

Any judgements on the HK sound system? Is it worth it?

 

[johnnylingo]

With the rapid changes in range and the oncoming Bolt and Model 3, I do not wish to own a potential technological albatross in 3 years.

Completely agree. This is a veeeerrrry interesting move on BMW's part. I interpret it as a chess move on their part to make sure they don't have to firesale the remaining 2016s at 20% below MSRP the way they did with the 2015s a few months ago.

Any judgements on the HK sound system? Is it worth it?

I've always felt the base speakers were adequate for the average person and for listening to radio. This is especially true if you're not planning to use the REx, as the interior is very quiet with little road noise. The HK upgrade is more for audiophiles.

 

[i3Alan]

Even if you have paid $7500 in US federal taxes, you may not get the full credit because the alternate minimum tax rules are likely to come into effect.

Unlike the federal tax credit on hybrids that was subject to the AMT, the EV tax credit is not subject to the AMT. If your total federal income tax is at least $7500, then you can get the entire $7500 credit.

 

[eneka]

up same thing when the '16 came out, they didn't have the $7500 either. BMW will probably wait until inventory cleans about prior toward offering the $7500. Even the '14 didn't get the full $7500 until later

 

[cgrubbe]

Any judgements on the HK sound system? Is it worth it?

I've always felt the base speakers were adequate for the average person and for listening to radio. This is especially true if you're not planning to use the REx, as the interior is very quiet with little road noise. The HK upgrade is more for audiophiles.

Couldn't disagree more. The stock system is appalling for a car with this much technology! The extra $800 for the HK is well spent. At the very least it's totally worth listening to in person. My local dealer only had the stock 4 speaker on hand and was completely dismissive of the idea that the HK was worth it, going so far as to claim the HK was making the stock speakers. (Something I could never verify.) Ended up driving to a dealership 70 miles way to hear it and bringing home my 2015 i3 Rex.

 

[johnnylingo]

Couldn't disagree more. The stock system is appalling for a car with this much technology! The extra $800 for the HK is well spent.

Fair point, a car with a $50k MSRP marketed with the "latest and greatest" should have a premium system included. I don't disagree that the $800 is worth it if sound quality is important, but it may not for the average Joe. The i3 has a very quiet cabin and this may be why they felt it was OK to skimp.

I have seen spots where the base speakers are in fact entry level ones made by H/K. It's not so much the brand that does it though, it's going from 4 speakers to 12.

 

[savechief]

The biggest shock to me is that BMW HAS WITHDRAWN THE $7500 CREDIT ON A LEASED 2017. IT IS ONLY OFFERED ON THE 2016 AND ANY REMAINING 2015 MODELS. I was told that when those are gone, there will probably be incentives on the 2017, but that may be spring 2017. To get it, you must be a qualifying purchaser, who has paid at least $7500 in federal taxes in 2015.

This is no longer true, as the i3 program was updated in August. The following post is from a BMW salesperson that contributes to the bimmerfest.com site:

http://www.bimmerfest.com/forums/showpost.php?p=9796923&postcount=4

 

[Maplewood]

WOW! Thanks for this very timely info. I have sent it on to my dealer. My car is scheduled to arrive in the Port of New York on Wednesday, Aug. 24. Thus far, I have not signed the lease agreement. I found a link on here to track the car across the Atlantic by entering the VIN on a shipping website. Satellite views and all. I think I know more about it than the Dealer would care to find out or tell me. Thanks Again! I hope you just saved me some serious cash!

 

[Maplewood]

In case you are interested, here is the link to follow a BMW from production to delivery. It is one of the best websites that I have ever used.

http://www.bmwblog.com/2009/07/14/how-to-follow-a-new-bmw-from-order-to-shipping-and-to-delivery/

 

[tiburonh]

The biggest shock to me is that BMW HAS WITHDRAWN THE $7500 CREDIT ON A LEASED 2017. IT IS ONLY OFFERED ON THE 2016 AND ANY REMAINING 2015 MODELS. I was told that when those are gone, there will probably be incentives on the 2017, but that may be spring 2017. To get it, you must be a qualifying purchaser, who has paid at least $7500 in federal taxes in 2015.

This is no longer true, as the i3 program was updated in August. The following post is from a BMW salesperson that contributes to the bimmerfest.com site:

http://www.bimmerfest.com/forums/showpost.php?p=9796923&postcount=4

Anyone in California needs to remember that (and this is no fault of BMW's) whatever credit BMW gives on the lease of an i3 will be treated by the state of California as a capital cost reduction -- which is subject to tax at whatever your local community's sales tax rate is. So, if you lease in California, you will never be able to capture the full value of the $7,500 federal tax credit even if your income actually qualifies you for that full $7,500. The only way in CA to get the full value of the $7,500 is to buy your i3 -- which has its own inherent issues.

 

[Maplewood]

Update: Just heard from my dealer today, my car arrived at the Port of New York on Thursday of last week. It is currently on a truck headed to my dealer in Lancaster, PA. BMW has reinstated the $7500 credit on 2017 LEASES as well as sales. I ordered this car on July 18 and, if all goes well, I will pick it up after Labor Day. This ends up being 7 weeks. Thanks to the poster "savechief", I alerted the dealer to the reinstatement of the credit and they confirmed it. This is a payment savings of over $200 per month on a 3 year lease @ 12,000 miles per year. This blog site is AWESOME! I would hope the dealer would have told me, but who knows?

 

[i3Alan]

...BMW has reinstated the $7500 credit on 2017 LEASES as well as sales.

There is a $7500 tax credit on sales of an i3, regardless of any dealer or BMW credit. Are you saying you get a $7500 credit on an i3 sale (not lease)? That is worth double what the same credit is on a lease. I'm guessing you meant BWM is giving the credit only for leases, and Uncle Sam is giving the credit for sales.

 

[savechief]

On Leases: BMWFS gives the $7500 tax credit as a cap cost reduction (prepayment of a portion of the depreciation), which the person leasing the car can take advantage of right away, but must pay sales tax on.

On Purchases: The buyer may or may not be able to take advantage of the $7500 Federal EV credit based on their individual income tax situation. They certainly would have to wait until filing taxes to take advantage of anything, and if you owe nothing or have a refund coming your way, you get none of the $7500 credit. If you owe less than $7500 in taxes, you may be able to take advantage of some of the credit, and if you owe $7500 or more, you may be able to take advantage of the full credit.

 

[i3Alan]

They certainly would have to wait until filing taxes to take advantage of anything, and if you owe nothing or have a refund coming your way, you get none of the $7500 credit.

One may be able to immediatelly reduce tax withholding until the $7500 credit was avoided being paid, thus collecting the credit very quickly and not seeing it as a refund at the end of the year. When I got my i3 in '14, I asked my employer to stop withholding all federal income tax until the $7500 worth of normal withholding was not withheld. Yes, I did get a phone call from the HR department to verify I was doing this for legitimate reasons.

If you have a refund coming, then your refund may just be $7500 more. That is, a tax refund or taxed owed has no bearing on how much of the $7500 tax credit one may receive. All that matters is how much your total tax bill (before withholdings) is, and if it is over $7500, then you should be able to get the full $7500, either in a reduced tax bill or in an increased tax refund.

 

[savechief]

My mistake on the misinformation, thanks for the explanation of how the credit works for purchases.

 

[brorob]

Couldn't disagree more. The stock system is appalling for a car with this much technology! The extra $800 for the HK is well spent.

Fair point, a car with a $50k MSRP marketed with the "latest and greatest" should have a premium system included. I don't disagree that the $800 is worth it if sound quality is important, but it may not for the average Joe. The i3 has a very quiet cabin and this may be why they felt it was OK to skimp.

I have seen spots where the base speakers are in fact entry level ones made by H/K. It's not so much the brand that does it though, it's going from 4 speakers to 12.

Agree it's worth the upgrade if you enjoy listening to music in your car, but I wouldn't be surprised if the 6x9 subs are entry level. I was really disappointed when I had a 3 series loaner that had much better sound, especially the low end. The HK stereo sounds great but it is lacking in depth/low end.

 

[johnnylingo]

I did not want the moonroof, so I don't know the price

About $2000 based on this build, since the same without would be $54,800