US Financing Details

[tiburonh]

Jay Cole has the scoop on his Inside EVs blog today. Thanks Jay!

http://insideevs.com/bmw-i3-finance-and-lease-details/#comment-327053

The leasing program stinks -- low residual, plus BMW is going to keep 35% of the federal tax credit for themselves.

The finance rates are also not competitive.

I'm waiting to see what the Owner'sChoice details are, but right now looks like I will end up buying outright rather than doing any financing.

 

[michael]

This is a very important bit of news and doesn't seem to be getting much attention. According to the article, expected lease rates are in the order of $550/mo plus $5000 down for a Rex with 15,000 miles. Pro-rating the down over 36 months, about $700. Also BMW is planning of keeping over a third of the $7500 money. Add this to the stated intention of some dealers to raise the price even further, the I3 looks like a non-starter price-wise.

Ohhh....and no carpool sticker either.

I certainly have lost my enthusiasm. Volts-ville for me I'm afraid...

 

[kullenberg]

It will be interesting to see what Mercedes comes up with when they release the details on the B Class Electric. This would seem to be an opportunity to undercut and pull the rug out from BMW, as it were.

 

[toolworker]

The low residuals are disappointing, but hardly surprising.

Right now the i3 is unique. In 24 to 60 months there will be a lot more EV and almost-EV (REx) choices out there. Technology may improve, and a range that looks attractive now may well be seen as a compromise, or even non-competitive.

Although the i3 has many fewer parts to wear (no transmission, little brake wear, and at most a small, lightly used engine), the battery pack has a limited life span.

So I would expect depreciation on the i3 to be faster than the average vehicle.

 

[Alexander99]

If MB has anyone on their team read the i3 Facebook forum they are going to be salivating.

Quotes of >$800 for LEASING a $45k car!!! Some as high as $900. A car that should come with a $7,500 incentive that BMW is not fully passing along to the consumer - first time I've seen this maneuver.

"Sir, would you like a 750i or an i3, they are the same price per month this week."

MB has an opportunity here to absolutely clean BMW's clock. If they incentivize it just a little on the MF side, price it at $43k and roll the $7,500 into it they could easily do a $399 lease. Watch, I bet that's what they do. Plus, it looks like a normal car, has a beautiful interior, has real doors and a lot more space.

I still like the i3 because of the carbon fibre and lightweight, hatchback style and size but if everything we've heard is true, I'm out.

It will be interesting to see what Mercedes comes up with when they release the details on the B Class Electric. This would seem to be an opportunity to undercut and pull the rug out from BMW, as it were.

 

[Mike74jcw]

Quite disappointing if these numbers are accurate. Looks like the best (only) choices for a low monthly payment are OwnersChoice or OwnersChoice with Flex!

 

[Yiiikes]

Very disappointing. And of course the dealers are going to play with the MF as a way to build in a premium as well.

The downside of the OwnerChoice programs is that we will not see the $7500 until next year's tax returns which will be a year mor more after we purchase. Tough decision.

 

[TomMoloughney]

This is a very important bit of news and doesn't seem to be getting much attention. According to the article, expected lease rates are in the order of $550/mo plus $5000 down for a Rex with 15,000 miles. Pro-rating the down over 36 months, about $700. Also BMW is planning of keeping over a third of the $7500 money. Add this to the stated intention of some dealers to raise the price even further, the I3 looks like a non-starter price-wise.

Ohhh....and no carpool sticker either.

I certainly have lost my enthusiasm. Volts-ville for me I'm afraid...

Couple things. BMW isn't keeping a third of the tax credit. They only get $4,875 and they are passing on everything they get. I've had some email conversations with the BMW Financial Services manager over this and he is going to thoroughly explain how it works very soon and I'll convey that here. This is why they are doing the OwnersChoice Flex option so the customers can get the full $7,500 credit.

Also, there is a lot if misinformation about the carpool stickers. The BEV definitely gets the white sticker for sure. The REx i3 likely gets the green sticker, like the Volt does and *may* still get the white sticker because CARB hasn't even tested it yet let alone decided the fate. Also, the i3 REx should gets the full $2,500 California rebate, just like the i3 BEV gets, and the Volt only gets $1,500 because it is classified as a plug in hybrid and the i3 REx is considered an electric car with a range extender.

The Volt is a good Ev, I'm not bashing it, just giving you the facts.

 

[tiburonh]

This is a very important bit of news and doesn't seem to be getting much attention. According to the article, expected lease rates are in the order of $550/mo plus $5000 down for a Rex with 15,000 miles. Pro-rating the down over 36 months, about $700. Also BMW is planning of keeping over a third of the $7500 money. Add this to the stated intention of some dealers to raise the price even further, the I3 looks like a non-starter price-wise.

Ohhh....and no carpool sticker either.

I certainly have lost my enthusiasm. Volts-ville for me I'm afraid...

Couple things. BMW isn't keeping a third of the tax credit. They only get $4,875 and they are passing on everything they get. I've had some email conversations with the BMW Financial Services manager over this and he is going to thoroughly explain how it works very soon and I'll convey that here. This is why they are doing the OwnersChoice Flex option so the customers can get the full $7,500 credit.

Also, there is a lot if misinformation about the carpool stickers. The BEV definitely gets the white sticker for sure. The REx i3 likely gets the green sticker, like the Volt does and *may* still get the white sticker because CARB hasn't even tested it yet let alone decided the fate. Also, the i3 REx should gets the full $2,500 California rebate, just like the i3 BEV gets, and the Volt only gets $1,500 because it is classified as a plug in hybrid and the i3 REx is considered an electric car with a range extender.

The Volt is a good Ev, I'm not bashing it, just giving you the facts.

Thanks Tom. It would be very helpful indeed to hear BMW's explanation on the financing options! I'm especially curious to hear their explanation regarding the federal tax credit when one leases. Thanks again for all you do here.

 

[cab]

This is a stinger. As much as I like BMW (OK, it is sort of a love/hate thing) this does make my Volt look like a steal. I'm in Texas which means we have to pay sales tax on the FULL purchase price of the car up front (instead of just paying the sales tax on the amount of the lease...typically done with each lease payment). In other words, we are a lease UN-friendly state. Having said that, my Volt's sticker price was $45K or $46K (loaded with every option but special paint) + the 6.25% sales tax. I think I got it for $42,500 or somewhere in there and my lease is $422/mo all in...$0 down, 3 yrs/36K miles - I didn't even pay a security deposit. I am having a hard time stomaching a lease payment that could easily be double that for an i3 rEx...

This seems like a huge misstep for BMW in the U.S. market where so many "buyers" lease in the luxury car market. To make matters worse, there is no excuse for it. BMW only has to look at other car maker's and their EV entrants (particularly the Leaf and Volt) to see that people have to be incented a bit to jump in to the world of electric. Once electrics are more established that won't be the case, but it certainly is today. This is also BMW's mainstream electric, unlike say, a Cadillac ELR or BMW's own i8 - they need this to move in some quantity.

As for buying outright, heck BMW's own low residual says to buyers "expect this car to depreciate quickly"...not exactly motivating.

Still holding out hope for the Owner's Choice Flex program, but I doubt it will be much better as i assume the residual value will be similar....we'll see.

 

[michael]

.
Couple things. BMW isn't keeping a third of the tax credit. They only get $4,875 and they are passing on everything they get. I've had some email conversations with the BMW Financial Services manager over this and he is going to thoroughly explain how it works very soon and I'll convey that here. This is why they are doing the OwnersChoice Flex option so the customers can get the full $7,500 credit.

I hope he can come up with something convincing...I've never heard of this problem before. GM, Ford, Nissan all manage to realize the full $7500 and to factor it into the lease. I'd like to know why BMW qualifies for only 65%, and why they pass this problem onto the customer. Effectively they have boosted the lease basis by $2625.

 

[tiburonh]

.
Couple things. BMW isn't keeping a third of the tax credit. They only get $4,875 and they are passing on everything they get. I've had some email conversations with the BMW Financial Services manager over this and he is going to thoroughly explain how it works very soon and I'll convey that here. This is why they are doing the OwnersChoice Flex option so the customers can get the full $7,500 credit.

I hope he can come up with something convincing...I've never heard of this problem before. GM, Ford, Nissan all manage to realize the full $7500 and to factor it into the lease. I'd like to know why BMW qualifies for only 65%, and why they pass this problem onto the customer. Effectively they have boosted the lease basis by $2625.

+1

 

[dennis]

.
Couple things. BMW isn't keeping a third of the tax credit. They only get $4,875 and they are passing on everything they get. I've had some email conversations with the BMW Financial Services manager over this and he is going to thoroughly explain how it works very soon and I'll convey that here. This is why they are doing the OwnersChoice Flex option so the customers can get the full $7,500 credit.

I hope he can come up with something convincing...I've never heard of this problem before. GM, Ford, Nissan all manage to realize the full $7500 and to factor it into the lease. I'd like to know why BMW qualifies for only 65%, and why they pass this problem onto the customer. Effectively they have boosted the lease basis by $2625.

I've actually heard that a lot of the other car manufacturers also did not get the full $7500... However, they just applied the full amount to the leases when the EV price "wars" started...

 

[michael]

I've never heard that...which companies?

Still hoping to hear BMW's explanation....??

 

[jc4usc]

I just placed my order for a fully loaded Range Extender ($56,025 MSRP). I've been a long time customer with BMW, 15+ years, and lease 2x cars at a time every 3 years (for myself and my wife). The dealer just started taking orders, I'm the 10th one they've received. 7 of which are Active E customers. So basically, I'm #3 from the rest.

The lease quote came in around $5k down with a $950 lease for 36 months - 15k miles/year. It's similar to what I've been reading.

He told me that their dealership (in Los Angeles) is slated for only 80 vehicles this year.

Anyone getting similar quotes and information?

Thanks all...

 

[Alexander99]

Do I read this correctly, $950 for a $56k car and a $5,000 cap reduction?

Could you post the other details; MF, residual, etc...

 

[michael]

So sum of payments =

(36x950) + 5000 + 4875 = 44075 on a car with MSRP of $56025?

 

[TomMoloughney]

You should know the dealers DO NOT have the actual financing information from BMW FS yet. They are working off an internal bulletin that doesn't have the correct information.
BMW FS is also creating a new financing option specifically for the i3 which will allow you to get the maximum tax credit.

Just wait a bit for BMW FS to supply the dealers with the actual financing details before you worry about crazy high quotes like this. Here is the latest info I got from BMW Financial Services about this:

http://bmwi3.blogspot.com/2014/01/bmw-i3-tax-credits-and-leases-and.html

 

[Buskraut]

Tom, Do you know when dealers will actually be able to place orders in the US?

My dealer seems to think we're very close to the day.

 

[TomMoloughney]

Tom, Do you know when dealers will actually be able to place orders in the US?

My dealer seems to think we're very close to the day.

I don't know the exact date but I agree it's very close. I'm betting February 5th!