[IS350]

Thoughts on around $5k off a $100k 2019? I realize it's not great, but a friend is happy with the deal. Also they drive 25k or so a year, but will put it as a business lease, still smart to lease vs buy?

[unfoundnemo]

Originally Posted by IS350

Thoughts on around $5k off a $100k 2019? I realize it's not great, but a friend is happy with the deal. Also they drive 25k or so a year, but will put it as a business lease, still smart to lease vs buy?

Leasing is the way to go for tax purposes on a business vehicle, especially as the payments go up, but I believe their may be a ceiling. 5% off is likely what the CA could offer on his own, if your friend accepts that and an inflated MF, he'll be the hero of the floor for the day. I'd ask for 10% plus incentives and settle for 8% plus incentives myself.

[IS350]

Originally Posted by unfoundnemo

Leasing is the way to go for tax purposes on a business vehicle, especially as the payments go up, but I believe their may be a ceiling. 5% off is likely what the CA could offer on his own, if your friend accepts that and an inflated MF, he'll be the hero of the floor for the day. I'd ask for 10% plus incentives and settle for 8% plus incentives myself.

Thanks a bunch, yes, not sure the cap on lease deductions for business. Do most dealerships commonly offer the base rate money factor?

For those getting 10% off msrp or so, is that not including any rebates, on a new, untitled X7?

Thanks.

[drbmw]

Hi
I am about to get my x7
We have negotiated the purchase price
I had decided to go with my bank for my auto loan
I had a promo rate that I had locked in expecting the car delivery in 30 days
However the delivery has been delayed and I won’t get the car on time
Now I tried to tell my dealer to get the contract for the purchase price minus the down payment which I had paid in good faith before the actual car delivery
But the F and I at bmw dealership will not initiate a vehicle loan contract without knowing the car is on it way to the dealership due to some hypothetical risks involved
My bank that offered the loan is ok with proceeding without the actual vehicle in hand

My question is-
Is my dealer correct in saying that vehicle Loan contract cannot be initiated without the actual car delivery or was he just making up

I told him that I will hold him responsible if my bank fails to give the same interest rate at the time of car delivery

Please give your thoughts and thanks in advance

[nitrous_nit]

I’m getting 10% off MSRP here in the Chicago suburbs through a couple of dealers on 2019 x40

[Wild Blue]

Awesome to hear, nitrous_nit !

drbmw Others can chime in with their experiences with BMW financing, but I would imagine the dealer can do what they like with setting the loan contract. Now, if you had established a BMWFS loan along with the original vehicle purchase, I could see questions about locking in the BMWFS rate.

Since the Fed just lowered interest rates, though, I wouldn't be worried about rates going up in the short term. If anything, they might go down.

[drbmw]

Originally Posted by Wild Blue

Awesome to hear, nitrous_nit !

drbmw Others can chime in with their experiences with BMW financing, but I would imagine the dealer can do what they like with setting the loan contract. Now, if you had established a BMWFS loan along with the original vehicle purchase, I could see questions about locking in the BMWFS rate.

Since the Fed just lowered interest rates, though, I wouldn't be worried about rates going up in the short term. If anything, they might go down.

Hope so too
Thanks WB

[dkpark0612]

As a data point, I got 7.3% discount from msrp before incentives. A couple of centers in town were eager to earn the business so there seems to be more room but I just did not want to spend more time on it. One dealer even told me that he can intercept the delivery after I told him I placed an order but I passed. Good luck everyone.

[760Lifan]

Yeah, just wait until the sale of the MB GLS has fully launched.

If you offer 10% off by then, they will probably agree without any negotiation..

[aas5]

Originally Posted by unfoundnemo

Leasing is the way to go for tax purposes on a business vehicle, especially as the payments go up, but I believe their may be a ceiling. 5% off is likely what the CA could offer on his own, if your friend accepts that and an inflated MF, he'll be the hero of the floor for the day. I'd ask for 10% plus incentives and settle for 8% plus incentives myself.

I am not sure about this. I would definitely check in with your accountant. You can deduct a big chunk of your purchase price in year 1 from taxes if you use your car for business so it may be better to buy vs. lease. I am sure it has been discussed before, including the impact of the new tax laws. Don't assume leasing is better for business.

"You can get a tax benefit by taking a Section 179 deduction by purchasing and using a new pr "new to you" vehicle for your business. This special deduction allows you to deduct a big part of the entire cost of the vehicle in the first year you use it if you are using it primarily for business purposes.

Section 179 deductions work in a similar way to depreciation. The purpose of depreciation is to spread the expense (and tax deductions) of owning a business asset like a vehicle over the life of that asset. Normally, depreciation is deducted as an expense to the business over the life of the equipment or vehicle. But Section 179 allows you to speed up the depreciation, taking more of the expense of the purchase in the first year.

The amount you save on taxes for a deduction always depends on your business tax bracket. The higher your tax bracket, the more you save. To figure your estimated tax savings, you need to know whether your business pays taxes through your personal income tax return or your business tax return and then determine your tax bracket:
Most small businesses are pass-through, meaning they pay business taxes through the owner's personal tax return.
Corporations pay their own income taxes, at the corporate tax rate.

First, these deductions are only for vehicles used more than 50% of the time for business purposes. The deduction is limited to the amount of use. Some vehicles (like taxis, airport shuttle vans, and limousines) are considered only as business vehicles so they can be deducted at 100%. Second, the vehicle must be purchased and put into service (used) during the year in which you are applying for the Section 179 deduction."

https://www.thebalancesmb.com/sectio...ess-suv-397885

[nitrous_nit]

Just letting you guys know, there are deals to be had. I negotiated 11.1% off MSRP of $83795 on a 2019 x40i

I was content with 10%, but kept pushing more. My goal was 12%, but my ethics took over me and I just stopped.

[CruiseControl]

Originally Posted by nitrous_nit

Just letting you guys know, there are deals to be had. I negotiated 11.1% off MSRP of $83795 on a 2019 x40i

I was content with 10%, but kept pushing more. My goal was 12%, but my ethics took over me and I just stopped.

Was that for an order or an x7 on the dealer lot?

[Wild Blue]

Originally Posted by nitrous_nit

Just letting you guys know, there are deals to be had. I negotiated 11.1% off MSRP of $83795 on a 2019 x40i

I was content with 10%, but kept pushing more. My goal was 12%, but my ethics took over me and I just stopped.

That's awesome, nit. Best X7 deal I've heard yet. Well done!

[nitrous_nit]

Originally Posted by CruiseControl

Was that for an order or an x7 on the dealer lot?

Car on the lot.

[nitrous_nit]

Originally Posted by Wild Blue

That's awesome, nit. Best X7 deal I've heard yet. Well done!

They are also giving me the all weather mats, so that’s another $500 I don’t have to spend.

[XLR8_24/7]

Does anyone know what the BMW Financial Services Money Factor is for the X7 in August for Tier 1 Credit?

[760Lifan]

Originally Posted by XLR8_24/7

Does anyone know what the BMW Financial Services Money Factor is for the X7 in August for Tier 1 Credit?

For 36 months, I think it's .00145 right now.

[XLR8_24/7]

760Lifan: Thanks for prompt response and providing me the infromation for the August Money Factor.

[760Lifan]

Originally Posted by XLR8_24/7

760Lifan: Thanks for prompt response and providing me the infromation for the August Money Factor.

You're very welcome, XLR8_24/7!

BTW, here's where I'm 'monitoring' the numbers:

https://forums.edmunds.com/discussio...rices/p1?new=1

[CruiseControl]

Regarding GAP insurance for a lease, is it necessary? If yes, does anyone have any purchase recommendations?

Thanks guys.

[760Lifan]

Originally Posted by CruiseControl

Regarding GAP insurance for a lease, is it necessary? If yes, does anyone have any purchase recommendations?

Thanks guys.

On such a vehicle, I'd say it's a must.

9 out of 10 leases come with it. Check with the dealer if it's already included and if not, insist on it.

[nitrous_nit]

Originally Posted by 760Lifan

On such a vehicle, I'd say it's a must.

9 out of 10 leases come with it. Check with the dealer if it's already included and if not, insist on it.

Bmw lease comes with gap , I asked this question to the finance officer, when I was signing the papers.

I think most leases in US come with gap insurance included.