Is this a good deal?

[F10M5]

My first post so bear with me.

Looking at a 2014 non-Rex i3 fully loaded with highest world (Terra I think) and all options. MSRP was around $51000. I have read the postings and saw what price people were getting and what questions to ask. Bottom line, this is the deal they are offering:

2 year lease
0 Down
12,000 miles per year
$452.45

In Colorado, we get $6000 incentive on top of $7500. I opted for the Owner's Choice which I understand I basically "return" the $7500 I receive back after taxes when I turn in the car at the conclusion of the lease. Price does not include $6000 incentive.

I don't know the particular of the lease like money factor, residual etc.

Deal is $431 for 10,000 miles per year.

What do you all think?

 

[F10M5]

Also, this price includes taxes

 

[manitou202]

That seems like a pretty good deal. I just picked up my i3 non-rex with Giga world and a few other options ($47,400 MSRP). $340 a month with sales tax, 24 months, 10k per year, and $2500 down. I'm in Colorado as well but the city I live in (Manitou Springs) raises the sales tax rate up to 8.95%.

I looked into the Owner's choice, but I continue to get mixed information on whether BMW guarantees the buy back price or not. I wasn't willing to do it unless it was guaranteed. The lease on my Nissan Leaf is ending and the residual is way higher than what the car is actually worth. I'd be very nervous about i3's running into the same issue with Owner's Choice.

Good luck!

 

[F10M5]

So new plan. They are offering a 2 year lease with 12000 miles per year for a 2014 Rex 0 down. Tera World and Tech Package. No Parking Assist it HK radio. $405 per month. Straight lease. Not Owners Choice. They gave me a money factor of .00030 if I pre pay to get it down further. Good deAl?

Is the HK radio that much better?

I still get the Colorado $6000 off taxes next year even though it's a lease?

Any other suggestions? MSDs?

Thanks for any help!

 

[jhu321]

So new plan. They are offering a 2 year lease with 12000 miles per year for a 2014 Rex 0 down. Tera World and Tech Package. No Parking Assist it HK radio. $405 per month. Straight lease. Not Owners Choice. They gave me a money factor of .00030 if I pre pay to get it down further. Good deAl?

Is the HK radio that much better?

I still get the Colorado $6000 off taxes next year even though it's a lease?

Any other suggestions? MSDs?

Thanks for any help!

You want owners choice. The way it works is at the end of the terms you either pay the balloon payment equal to the lease buy out price or you give them the car back and it satisfies the loan. That's it. It's not a guaranteed buy back so much as its saying the can will cancel out the loan.

Because it's a loan, it's titled to you and you get to keep the 7500 and the 6000 so while your monthly payments will be higher because of the tax benefits your effective cost is lower. As long as your tax liabilities are high enough you should look into owners choice. The federal tax is not a refundable credit so if you don't have enough taxes to realize the 7500 credit then you should take the lease. Remember it's liabilities not what you owe on April 15. So if your payroll withholdings were on track and your payroll withholdings are higher than 7500 you will get 7500 back. It's based on what you make and what the tax liabilities of your income is and not what you owe or return on April 15th

 

[manitou202]

If you lease, you will only get a portion of the Colorado tax credit. It's equal to the percent depreciation of the car during the lease term. For example, if your residual value at the end of your lease is 60%, you will get (1 - .60) 40% of the tax credit.

Be careful of the Owners Choice. For example, if your payments are based on the i3's value at $25,000 at the end, but the car is only worth $20,000, you will either have to pay $5,000 to turn it in or pay $25,000 for a car only worth $20,000. It's a risk. Do some research on Nissan Leaf resale values. Electric cars are in a weird position where the technology is changing fast enough that older models can take serious hits to resale values. If BMW releases a new i3 with twice the range in 3 years, older i3's will take a significant hit on the used market. If you lease, you put all of the risk on BMW.

 

[jhu321]

The owners choice would only include 350 dollars disposition fee and excess wear and tear just like a lease. It's effectively a walk away option just like the lease.

According to this explanation
http://insideevs.com/bmw-i3-owners-choice-owners-choice-flex-explained-bmw-finance-general-manager/

BMW's website also has the following language.

6 An OwnersChoice or OwnersChoice with Flex customer may be eligible to sell the financed vehicle back to BMW Financial Services at the end of the contract term for a pre-determined resale price, and have that resale price credited against the final balloon payment due. If you sell your BMW i vehicle back to us at the end of your contract term, the difference between the pre-determined resale price for your BMW i and the final balloon payment amount due may include (i) the Flex Amount, (ii) a $350 disposition fee, and (iii) any applicable excess wear anduse and excess mileage charges. Any difference between the resale price and the final balloon payment due must be paid in full at contract maturity.

http://www.bmwusa.com/Standard/Content/FinancialServices/BMWiFinancing/FinancingProducts.aspx

 

[manitou202]

I understand what BMW's website says. I showed that exact page to two different dealerships. Both called BMW and said that the trade-in value is the appraise value at the end of the loan term.

Now, I realize that this is new and I didn't get the feeling the either dealership completely understood the Owners Choice, but they seemed to confirm something different from BMW finance and I'm not willing to take the risk.

 

[spoovy]

No need to take any risk. Ask to see the BMW FS paperwork (contract) for Owners Choice - from the dealership finance department. I have OC+Flex (slightly different), but regardless it should show you exactly what you want to know. The front line generally tells you what you need to hear to sign on the dotted line.

 

[Schnort]

I will say I bought with owners choice w/flex, and it was represented to me verbally that the residual written on the contract was guaranteed.

It isn't nearly as explicit on the contract itself, and suggests that the residual is an estimate of the wholesale value of the vehicle at the balloon payment due date(which will really make me angry):

More specifically, the residual value is $x (this is your estimate of the wholesale value of the vehicle on the Balloon Payment due date), and the purchase price shall be the residual value minus (a) a disposition fee of $x (to help cover your costs of re-titling, re-registerign, transporting, storing, and sellign the returned vehicle); (B) excess mileage deduction of Xcents for each mile driven in excess of Y miles per year and (C) the excess wear and use deduction as explined in section 12 on the back of this contract.