2018 i3 incentives and rates for April

[soheilk]

What are the April lease and purchase rates and BMW incentives on a 2018 i3 REX (Southern California)?

Lease base MF: 0.00156?
Residual: 53.45%? (I calculated this from the advertised MSRP and MF)
APR: 3.99% (60 months)

- $2,000 BMWFS Loyalty credit (applicable to lease/purchase/finance)
- $7,500 federal incentive (AFAIK in a lease deal this will be deducted as an incentive from the purchase price and in a purchase deal you'll deduct it from your tax return)
- $2,500 CA Clean Air Rebate (which should be filed separately) that I think will be applied to both purchase and lease, right?
- $1,000 BMWCCA rebate

- $10,000 purchase/finance incentive from Costco / PG&E / SCE (cannot be combined with any other offers, only applicable to purchase/finance deals)
- $500 lease incentive from Costco (cannot be combined with any other offers, only applicable to lease deals)
- $450 SCE's Clean Fuel Rebate (can be combined with the $10000 offer and is applicable to both lease and purchase/finance deals)
- $500 PG&E's Clean Fuel Rebate (can be combined with the $10000 offer and is applicable to both lease and purchase/finance deals)


So if you are an existing BMWFS customer and BMWCCA member and would like to lease an i3, you can potentially save $2000+$1000+$7500+$2500+$500 = $13,500
and if you are an existing BMWFS customer and BMWCCA member and would like to purchase/finance an i3, you can potentially save $1000+$7500+$2500+$10000+$500 = $21,500

Any other lease/purchase incentives ?

 

[RFi3]

Thanks for the post!! Super helpful.

One point, the $7500 from the federal government is a deduction, not a credit. This is a trick dealers use to make you think you’re getting $7500 back. As it is a deduction, it comes out of the income you are taxed on. Thus you are not actually getting $7500 back, you are actually getting “you’re effective tax rate” x $7500 back.

For example, if your effective tax rate is 20%, you would be getting a federal tax refund on that $7500 of $1500. 20% x $7500 = $1500

For those of you looking into purchasing the car, hope that helps for all your calculations when figuring out the economics of the car. Technically the rebate goes to the owner of the car, so for those of you looking into leasing, that means BMWFS gets the federal rebate. I have no idea how BMWFS passes on the rebate, or some portion of it, to you.

 

[RFi3]

I apologize for the you’re v your typo from my iPhone.

 

[soheilk]

Since we just leased our i3 a little more than a month ago, I can say that BMWFS passes down the entire $7,500 federal incentive to the customer. And they deduct it entirely from MSRP, bringing down the cap cost by $7,500

 

[CharonPDX]

Thanks for the post!! Super helpful.

One point, the $7500 from the federal government is a deduction, not a credit. This is a trick dealers use to make you think you’re getting $7500 back. As it is a deduction, it comes out of the income you are taxed on. Thus you are not actually getting $7500 back, you are actually getting “you’re effective tax rate” x $7500 back.

The federal is a tax credit. If, on April 15 of next year, you would have owed Uncle Sam $7500 without buying an EV, but you bought a qualifying EV, you would owe Uncle Sam $0. If you would have gotten a $500 refund without buying an EV, you would instead get a refund of $8000. It reduces your *tax liability* by $7,500, up to reducing your tax liability to $0. (So if you had only $6000 withheld from your taxes, and no-EV-purchase would have gotten a $1000 refund, the EV tax credit will only increase your refund to $6000. BUT! Any unused credit can be carried over to the next year.)

It is *NOT* a deduction.

https://fueleconomy.gov/feg/taxevb.shtml

It is not a tricky by dealers - that's what it actually is. It has been this way since the first implemented it. Our 2004 Prius got us a similar credit when we filed in 2005.

 

[theothertom]

Thanks for the post!! Super helpful.

One point, the $7500 from the federal government is a deduction, not a credit. This is a trick dealers use to make you think you’re getting $7500 back. As it is a deduction, it comes out of the income you are taxed on. Thus you are not actually getting $7500 back, you are actually getting “you’re effective tax rate” x $7500 back.

The federal is a tax credit. If, on April 15 of next year, you would have owed Uncle Sam $7500 without buying an EV, but you bought a qualifying EV, you would owe Uncle Sam $0. If you would have gotten a $500 refund without buying an EV, you would instead get a refund of $8000. It reduces your *tax liability* by $7,500, up to reducing your tax liability to $0. (So if you had only $6000 withheld from your taxes, and no-EV-purchase would have gotten a $1000 refund, the EV tax credit will only increase your refund to $6000. BUT! Any unused credit can be carried over to the next year.)

It is *NOT* a deduction.

https://fueleconomy.gov/feg/taxevb.shtml

It is not a tricky by dealers - that's what it actually is. It has been this way since the first implemented it. Our 2004 Prius got us a similar credit when we filed in 2005.

That's correct if you purchase. If you lease, BMWFS gets the tax credit and refunds it to you in the form of a discount on the car. Obviously you can't claim it again on your tax return because BMWFS has already claimed it.

 

[CharonPDX]

That's correct if you purchase. If you lease, BMWFS gets the tax credit and refunds it to you in the form of a discount on the car. Obviously you can't claim it again on your tax return because BMWFS has already claimed it.

Either way, you're getting $7,500 off the purchase price. One as a time-of-lease discount off the lease financed amount; the other as a tax refund the following year.

 

[smyers528]

I wonder if there's any chance of the PG&E $10k off coming back for November in CA? If not I may have to see what end of year leases come up in December for an i3s.