Been hearing conflicting info regarding 7,500 federal tax credit. One dealer is saying that if I lease a new 2017 model for 1k down and a payment of 450.00, when I file taxes in may I can recieve the credit then. Another dealer is saying ( for the same terms) the tax credit is rolled into my lease payment. Can anyone she'd any light on the matter?
Been hearing conflicting info regarding 7 500 federal tax credit One dealer is...
If you lease, you don't get the credit, the leasing company does. Sometimes the leasing company will credit it back to you as a rebate, sometimes it is the full $7500, sometimes it is less.
^^^ meaning whether or not they do or how much they do is up to each leasing company. shop around on this or negotiate.
^ yup, when I got my i3 I only got back $4875 as a rebate. Two weeks later they started giving back the full $7500, my payment would have been $100 less per month.
Isn't bmw financial the leasing company for all leases?
And if not. Any suggestions?
The dealer gets the credit, as you do not own the car when you lease it. Sounds like a very shady dealer.
The dealer does not get the credit, the financing company does, typically BMWFS which is not the dealer.
Google, there are other companies out there but typically BMWFS has the best rates.
Marcus Pugh , dealer should know this. If they were not including the rebate in the cost for the lease and claiming that the customer can apply for the federal rebate - shame on the dealer.
technically, you can use any leasing company, I've seen BMW leases from Chase and what not. But yet, most are all BMWFS. Here in CA, the rebate is handed down from BMWFS to you as a Capitilized cost reduction, AKA Downpayment. It has to be listed out on the sales contract therefore you pay tax on it.
When I was shopping around, lots of sales people didn't know how to properly calculate the lease price with the $7500 credit.
Yes, the dealer should know this but your post states "The dealer gets the credit" which is incorrect. The problem is probably the salesperson, he or she probably doesn't sell many EV's and is probably confused with what is involved.
• Lease: BMW gets the credit and is rolled into payments (used to be less than the full $7,500--so make sure they do the full)
• Owner's Choice: technically a lease, but you get credits and benefits/burdens of ownership (technically a loan, not a lease)
• Buy: you buy it.
Make sure both dealers are talking about leases and not Owner's Choice.
Owners Choice is not "technically a lease". It is a financed purchase. I own the vehicle; I get the tax credit. It has some lease-like qualities, such as pre-negotiated terms for optionally returning the car at a predetermined time.
... the folks on the other side of the desk get the credit
Talk to the finance manager/leasing specialist. The salespeople rarely know enough about the intricacies of finance. They just want to move metal.
Mine was in lease contract, equivalent to capital cost reduction. CA state rebate I applied for separately and is $2500. The state rebate needs minimum 30 mo lease term and maximum income requirements to qualify.
@Ryan I understand that it's a financed purchase, but BMW advertises it as comparable to a lease in many places (e.g. Owner's Choice with Flex). The reason I called it "technically a lease" is from the consumer standpoint it behaves like a lease, pay less than outright purchase would, return at end of term or buyout at balloon/residual amount.
Of course, knowing the difference between this and a lease helps make a more informed decision.
The reason why Owner's Choice is popular in some areas is because some states/jurisdictions really make you bend over when it comes to payments. Example: Cook County in Illinois (where Chicago is) taxes both the full amount of the car AND each lease payment some exorbitant amount, so everyone "leases" by going through Owner's Choice to avoid double taxation.
Lease credit of $7,500... apply it however you like to your lease.
Jeremy Ho , New York was like that also
Pretty sure every state is different but in New York it was used as money down to lower the lease payment... kind of like the Feds give you money towards the lease... I'm assuming they cut the check to BMW