US : How to buy: Buy, OwnersChoice,Owners Choice Plus,Lease

[saisiv]

Hello All,
Need suggestions... which is the best choice to go for, I like to own, most likely I would get 1.99% interest loan.
But down the time if BMW releases SUV or bigger car in i series, I might be interested in going for it... in that case I think " Owners Choice Plus" might be the options...

 

[tiburonh]

Hello All,
Need suggestions... which is the best choice to go for, I like to own, most likely I would get 1.99% interest loan.
But down the time if BMW releases SUV or bigger car in i series, I might be interested in going for it... in that case I think " Owners Choice Plus" might be the options...

Correct answer is of course totally dependent on your own financial needs and the tax laws in your own market, but I think pretty much everyone can rule out leasing: you won't get the $7,500 federal tax credit if you lease.

 

[michael]

That's not correct. When you lease, the $7500 goes to the leasing company, and they apply it to the basis of the lease, generally as a reduction of the capitalized amount.

It's actually better than buying and hoping and waiting for the IRS to let you have the tax credit. If one's tax situation changes, he may not get some or all of the money, and in any event it is necessary to wait until tax filing.

Leasing is very beneficial for EVs.

 

[user 368]

I know someone who could pay cash, but instead he always leases his car, and pays off the lease right away.

At the end of the lease, he gets the choice of buying the car outright for the predetermined value or giving it back to the dealer.

With EV offerings increasing and the technology developing, this might be a good option to have in three years.

Edit: OK, I see Owner's Choice is similar to this. Newbie mistake.

 

[tiburonh]

That's not correct. When you lease, the $7500 goes to the leasing company, and they apply it to the basis of the lease, generally as a reduction of the capitalized amount.

It's actually better than buying and hoping and waiting for the IRS to let you have the tax credit. If one's tax situation changes, he may not get some or all of the money, and in any event it is necessary to wait until tax filing.

Leasing is very beneficial for EVs.

While you are correct that the $7,500 credit goes to the leasing company, you are unfortunately incorrect in assuming that the leasing company automatically and fully passes that credit along to the lessee. They are under no obligation to do so, and, this being the always dicey world of car sales, they often do not.

As always, YMMV, and caveat emptor.