[salant76]

Are you guys more interested in buying or leasing the i4 in the US?

As far as I know there hasn't been real confirmation on if the $7500 tax credit can be applied to a lease like the i3. Seems strange that they wouldn't do it for the i4 but would for the i3. That would save almost $200 per month on a 3-year lease. It would also have me lean towards leasing a M50 as well. Otherwise I would more likely buy the i4 40 since I would get a $7500 tax credit.

The BMW US pre-order lease terms do not mention the tax credit but my local dealer seems to think that the lease terms listed are not firmed up yet. He says that they have not yet set the residual value of the i4. Would be nice to have a more defined lease term when the pre-orders get firmed up in the fall when full specifications and options are provided.

 

[BimmerTim]

Because of how much I drive financing is going to be the way for me. Any lease I'd get would be too pricy or I'd go over the mileage limit.

 

[CRU1]

Are you guys more interested in buying or leasing the i4 in the US?

As far as I know there hasn't been real confirmation on if the $7500 tax credit can be applied to a lease like the i3. Seems strange that they wouldn't do it for the i4 but would for the i3. That would save almost $200 per month on a 3-year lease. It would also have me lean towards leasing a M50 as well. Otherwise I would more likely buy the i4 40 since I would get a $7500 tax credit.

The BMW US pre-order lease terms do not mention the tax credit but my local dealer seems to think that the lease terms listed are not firmed up yet. He says that they have not yet set the residual value of the i4. Would be nice to have a more defined lease term when the pre-orders get firmed up in the fall when full specifications and options are provided.

Agree! Hopefully, the $7500.00 on a lease can be used as a cap cost reduction.
Please keep us posted if you hear anything additional. I am leaning towards a lease.

 

[greensaloon]

Agree! Hopefully, the $7500.00 on a lease can be used as a cap cost reduction.
Please keep us posted if you hear anything additional. I am leaning towards a lease.

Welcome to the forum @CRU1!
Did you lease or finance your i3? What were the terms like for the one you went with? Considered any other vehicles before going with the i4?

 

[vestokes]

Are you guys more interested in buying or leasing the i4 in the US?

As far as I know there hasn't been real confirmation on if the $7500 tax credit can be applied to a lease like the i3. Seems strange that they wouldn't do it for the i4 but would for the i3. That would save almost $200 per month on a 3-year lease. It would also have me lean towards leasing a M50 as well. Otherwise I would more likely buy the i4 40 since I would get a $7500 tax credit.

The BMW US pre-order lease terms do not mention the tax credit but my local dealer seems to think that the lease terms listed are not firmed up yet. He says that they have not yet set the residual value of the i4. Would be nice to have a more defined lease term when the pre-orders get firmed up in the fall when full specifications and options are provided.

It does apply for leases.

 

[Willy5]

Read the fine print on Federal & State tax rebates. Not easy to get. And they vary by vehicle.

 

[JoeK]

Read the fine print on Federal & State tax rebates. Not easy to get. And they vary by vehicle.

The new bill will eliminate tax rebate for cars over 55K in US!

 

[Fayt349]

Since the $7,500 might not apply for the i4 anymore. Is it better to lease now?

 

[Baker Canada]

Since the $7,500 might not apply for the i4 anymore. Is it better to lease now?

Hmmm hard to tell until to get the interest rate and value at the end of the contract! We should get this info in January or Febrary.

 

[Fayt349]

Well, it seems like 7500 will stay. But I still don't know to lease or not.

 

[dspevack]

In my experience, whether to lease or not depends upon how many years you normally keep a car.
A lease usually ends up costing about 50% of the value of the vehicle. If you normally keep a car for twice as long as your lease or longer, then its better to purchase, because at the end of that period, you have a car to trade in. Otherwise during a lease you pay half the value of the car and have no equity at the end.

 

[i4_Loe]

If BMW passes the $7,500 rebate to it's customers, then I'm leaning towards a lease. If not, then BMW Select for me.

 

[Fayt349]

If BMW passes the $7,500 rebate to it's customers, then I'm leaning towards a lease. If not, then BMW Select for me.

Never heard of BMW select, will it be available for the i4? It looks like a really good choice from what I googled so far, especially if we keep the $7,500.

 

[i4_Loe]

Never heard of BMW select, will it be available for the i4? It looks like a really good choice from what I googled so far, especially if we keep the $7,500.

So far it's listed on BMWusa as a product available for the i4.

The downside is that you pay 1.9% on the entire amount and not just based on the amount "financed" during the term. In other words, if you need to get another loan for the balloon payment, you pay interest again on the new loan unless you a) buy it out with your own cash or 2) trade it in.

Also, you are liable for loss of value due to any body work/repairs needed and/or done throughout your ownership. In other words, if you have an accident in the history, you have to handle the loss value during trade-in whereas you can walk away from a traditional lease without having that responsibility

Also, in states where you only pay sales tax on payments (like FL) on a lease, you pay sales tax on the entire purchase price like traditional financing.

 

[Fayt349]

So far it's listed on BMWusa as a product available for the i4.

The downside is that you pay 1.9% on the entire amount and not just based on the amount "financed" during the term. In other words, if you need to get another loan for the balloon payment, you pay interest again on the new loan unless you a) buy it out with your own cash or 2) trade it in.

Also, you are liable for loss of value due to any body work/repairs needed and/or done throughout your ownership. In other words, if you have an accident in the history, you have to handle the loss value during trade-in whereas you can walk away from a traditional lease without having that responsibility

Also, in states where you only pay sales tax on payments (like FL) on a lease, you pay sales tax on the entire purchase price like traditional financing.

Sounds like something I'm interested in.

I'd probably pay the full balloon payment in cash if I keep it, or just sell it if I don't want it when it's time to do the balloon payment.

 

[Kayanarka]

In my experience, whether to lease or not depends upon how many years you normally keep a car.
A lease usually ends up costing about 50% of the value of the vehicle. If you normally keep a car for twice as long as your lease or longer, then its better to purchase, because at the end of that period, you have a car to trade in. Otherwise during a lease you pay half the value of the car and have no equity at the end.

The thing about lease that I do not understand is what you owe at he end to buy it. It seems like you pay 50% of the car cost during the lease, then you owe the other 50% when the lease is up to keep it, which means you just got a 0% interest loan on the car for 3 years. What am I missing here?

 

[paulbazo]

The thing about lease that I do not understand is what you owe at he end to buy it. It seems like you pay 50% of the car cost during the lease, then you owe the other 50% when the lease is up to keep it, which means you just got a 0% interest loan on the car for 3 years. What am I missing here?

On a lease , the part of the car you buy (selling price minus residual) you pay interest and principal, and on the residual you pay interest, at the end you can buy it for the residual. Depending on the state, you pay sales tax on your monthly payment only or on the full sales price. BMW used to incentivize leasing by inflating the residuals and using low interest and discounts. Now is different, leasing interest is high, residual is low and no incentives, so is better to buy

 

[Kayanarka]

On a lease , the part of the car you buy (selling price minus residual) you pay interest and principal, and on the residual you pay interest, at the end you can buy it for the residual. Depending on the state, you pay sales tax on your monthly payment only or on the full sales price. BMW used to incentivize leasing by inflating the residuals and using low interest and discounts. Now is different, leasing interest is high, residual is low and no incentives, so is better to buy

Everyone says this about interest, but if you multiply the monthly lease payment by 36k and add it to the lease payoff amount it totals MSRP, so I do not see where there is any interest or fees beyond the initial down payment.

Nevermind, I guess for some reason I assumed there was more Interest on a 60 month loan then there actually is.

 

[ScottAddaman]

Sounds like something I'm interested in.

I'd probably pay the full balloon payment in cash if I keep it, or just sell it if I don't want it when it's time to do the balloon payment.

I have the select on my 2019 530e - my dealership in Atlanta, GA said it would not be offered on the i4 and that the tax credit is only available on purchase. His info could be wrong, but he's been selling BMW's for 20+ years and always seems to have the correct intel.

 

[Fayt349]

I have the select on my 2019 530e - my dealership in Atlanta, GA said it would not be offered on the i4 and that the tax credit is only available on purchase. His info could be wrong, but he's been selling BMW's for 20+ years and always seems to have the correct intel.

Seems incorrect. You do get the tax credit because the car is under your name. That's all the government needs to make sure of. And that you're the first person to buy it.