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      05-05-2014, 12:26 PM   #1
boulderado
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i3 Owner's Choice with Flex explained in simple English

I think I've finally deciphered the code of BMW FS and thought I share my wisdom with the fellow i3 enthusiasts here:

1) With the traditional lease BMW FS owns the car and they only qualify for the business tax credit (meaning $4,875 instead of $7,500).

2) Owner's Choice is pretty much like a lease but instead of BMW FS, buyer gets to be the owner of the car thus qualifying for the full $7,500 federal tax credit.

3) To keep the monthly payments low (like a lease) with the Owner's choice, BMW introduces a balloon payment much like the residual value in a lease agreement. Basically the buyer gets an auto loan through BMW FS for the full amount of the car but for the first 36 months only pays the amount equal to Purchase Price - Balloon Value.

4) The flex portion of the deal provides the option to add the $7,500 federal tax credit to the balloon payment.

Ok this might not be super clear so let's plug in numbers to make it easier to understand.

Let's say we are going with a Giga Rex with Tech Package (MSRP $50,325)

BMW says that the balloon payment (so basically the residual value of the car after 36 months) is $23,150. Thanks to flex option we can add the $7,500 federal tax credit to this balloon value (23,150+7,500 = $30,650)

50,325-30,650 = $19,675 is the amount we owe in loan payments for the first 36 months of ownership.

19,675/36 = $546.5 is our monthly payment for 10k miles a year with 0 down.

Here is the good part:

- In my case I would be saving around $150-$180 a month for 15k miles a year on gas. (depending on the price of gas)

- We used MSRP for our calculation but I doubt that anyone would pay the full MSRP. Add other incentives (such as loyalty discount, eco credits, option allowance etc) to the basic MSRP negotiation and the final price should come down at least 2-3k while the balloon value is unchanged. (so a monthly payment reduction of $50-$100)

- State tax credit is another added bonus. I live in Colorado and I will qualify for $6,000 tax credit which would translate into (6,000/36 = $167) significant reduction in my effective monthly payment.
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      05-05-2014, 03:01 PM   #2
Tirpitz
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Quote:
Originally Posted by boulderado View Post
50,325-30,650 = $19,675 is the amount we owe in loan payments for the first 36 months of ownership.

19,675/36 = $546.5 is our monthly payment for 10k miles a year with 0 down.
What you posted is my understanding of the program. However I think your monthly payment numbers are off because you are not including the interest. I don't believe BMWFS is offering 0% terms.
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      05-05-2014, 03:38 PM   #3
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Quote:
Originally Posted by Tirpitz View Post
What you posted is my understanding of the program. However I think your monthly payment numbers are off because you are not including the interest. I don't believe BMWFS is offering 0% terms.
You're right, BMW FS charges 2.99% APR. So add $20-$25 a month to the calculated monthly payment number...
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      05-05-2014, 08:48 PM   #4
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The kicker is the residual value...lower than usual, and in some cases MUCH lower than some of the competing EV giveaway lease deals.
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      05-06-2014, 04:41 PM   #5
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One more thing:

If you have the means, make a down payment equal to the tax credit you are expecting to get. This way the total loan, which BMW FS provides for you to finance the car, reduces by the amount of down payment thus the total amount you are being charged for interest comes down somewhat significantly. And since it is not a lease car, if you total the car insurance cover the full amount.
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      05-07-2014, 04:33 PM   #6
chrisny
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Sooooo, I'm the only one reading this that has to ask what a Giga Rex is?

Ok, nevermind.. did a build your own and see.. they got a little funky with the lines for this one, huh?
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      05-07-2014, 11:15 PM   #7
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Originally Posted by chrisny View Post
they got a little funky with the lines for this one, huh?
Not strange at all if you have any background in digital (the wave of the future, here now?!).
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      05-08-2014, 08:00 AM   #8
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Originally Posted by jadnashuanh
Quote:
Originally Posted by chrisny View Post
they got a little funky with the lines for this one, huh?
Not strange at all if you have any background in digital (the wave of the future, here now?!).
Sorry, I was under the impression these were cars. My mistake. Then again, it does look more like an old school Mac than a car, so who am I to judge . And I said funky, not strange.
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      05-08-2014, 08:04 AM   #9
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Family resemblance?

Before you calculators all get upset, I'm only kidding. I like the car.
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      05-08-2014, 08:17 AM   #10
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On a more serious note, are there any i sedans in the works? I do find it strange they didn't reserve the i3 name for a 3 series sized sedan, and go with i1 to better reflect its size and relation to the rest of the BMW line up. Sorry, I know this is off topic.
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      05-08-2014, 11:32 AM   #11
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Quote:
Originally Posted by chrisny View Post
On a more serious note, are there any i sedans in the works? I do find it strange they didn't reserve the i3 name for a 3 series sized sedan, and go with i1 to better reflect its size and relation to the rest of the BMW line up. Sorry, I know this is off topic.
I'm sure there are other vehicles planned in the series...but, only time will tell. Getting all of the kinks worked out on the two basic types, the hybrid and the all-electric are the first step to opening up the lines. Yes, BMW has some other hybrids in their 'conventional' line, but they were not ground-up, purpose built for being electric, which distinguishes the I-line from pretty much anything else out there. If the Tesla was built with some of the same focus, it would be both faster and go further on the same set of batteries. That's not saying that it is a bad car at all, just that they had to make some compromises along the way. BMW has deeper pockets, and opted to go a different route. ANd, as we'll see in the next few years, the opportunity to extend that knowledge to their 'conventional' ICE line as well.
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      05-08-2014, 01:18 PM   #12
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Exciting stuff. I just booked my appointment to drive the i3 at the drive event in June. I wouldn't mind finding career opportunities in this space. New and exciting market. Seems like a long haul to get this mainstream, but also seems like it has the teeth to do it, finally. Obviously BMW thinks so too

Last edited by chrisny; 05-08-2014 at 01:24 PM..
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      05-08-2014, 05:26 PM   #13
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Quote:
Originally Posted by chrisny View Post
On a more serious note, are there any i sedans in the works? I do find it strange they didn't reserve the i3 name for a 3 series sized sedan, and go with i1 to better reflect its size and relation to the rest of the BMW line up. Sorry, I know this is off topic.
You'll be pleased to discover that the i3 is actually a bit roomier than a 3 series on the inside even though the exterior dimensions are closer to a 1 series. The commitment to a clean sheet design paid off.
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      05-08-2014, 05:43 PM   #14
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Quote:
Originally Posted by ultraturtle
Quote:
Originally Posted by chrisny View Post
On a more serious note, are there any i sedans in the works? I do find it strange they didn't reserve the i3 name for a 3 series sized sedan, and go with i1 to better reflect its size and relation to the rest of the BMW line up. Sorry, I know this is off topic.
You'll be pleased to discover that the i3 is actually a bit roomier than a 3 series on the inside even though the exterior dimensions are closer to a 1 series. The commitment to a clean sheet design paid off.
Yeah I saw that but still not sure I want my kids in a car so small. I'm not some old school "the bigger the safer" kind of guy, but I do worry about one that small with all of the big cars and SUV's running around today
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