Signed: Loaner 330e $49,945 MSRP - $347.14/mo, $0 DAS... Titled In My Name!

Signed Deals & Tips
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Here is the background. I’m in Texas, so leasing is rough: you have to pay taxes on the full sales price unless you can get tax credits. So, BMW has an interesting financing product - the Owner’s Choice balloon loan, that gives low payments for a short period (like a lease) with a balloon payment (the residual) due if one wants to keep the car (but maintaining the option to return). So, this is the best I can approximate my Owner’s Choice loan with the calculator:

**MSRP: $49,9xx
**Selling Price: $40,6xx
**Monthly Payment: $347
**Cash Due at Signing: $0
**MSD:n/a
**Incentives:$6000

**Months:24
**Annual Mileage:10k
**MF:0.00205
**Residual:0.65 (after mileage deductions)

**Region:TX
**Leasehackr Score: 11.5

Given the taxes, the deal is quite good - a hacker score of 11.5 years. Total payments of $8322 over two years. I’d be happy enough with this…

But! The Owner’s Choice is a loan, which means that the car will be titled, for its first time, in my name! Which means that I can claim tax credits of $4001 on my federal return and a rebate of $2500 from the state of Texas, which would bring the total payments to $1821 ($76/mo) and a hacker score of 46.1!

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Sounds too good to be true. You should verify with an accountant before signing.

If it is true, all I can say is W.O.W. & goodjob

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Everything I can find says it just has to be a newly titled vehicle… for legal purposes, I own the car the same way that anybody who finances would, I just have a guaranteed sales price in two years.

Anybody else ever done this?

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Technically it sounds correct to me. You are the legal owner and BMW FS is the lien holder. Unless BMW FS somehow claimed the tax credit, but I don’t think they could. Nice hack.

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The resale value is guaranteed? ie BMW will buy it back from you at that price no questions asked?

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I don’t know anything about that program, but the logic seems pretty sound. I’d chat with my CPA about it for a minute for a second opinion, but that sounds like an excellent hack!

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I’d love to read over the contract on one of these

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I’ll post it. My understanding is it is a balloon payment loan, with a set buyback price. Of course, the buyback price is reduced by excess mileage and damage. The intent is to replicate a lease with a loan.

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Wonderful Hack, enjoy your new ride.
Regarding the OwnersChoice there are few posts in the past where they have successfully claimed it.

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Owner’s choice does allow you to claim the federal tax rebate, but only if new. Doesn’t the lease agreement list demo/loaners as used?

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They’re sold as new cars and you can check that the VIN’s have never been titled or registered, so everything I’ve read indicates that they’re eligible.

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Sorry, by “they’re” I mean the loaners for sale at BMW of San Antonio… they still list 97, but I gather they sold some today.

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I know BMWFS considers them as “new” for leasing purposes, but does your contract list it as “new”? From what I’ve seen, demos/loaners were listed as “used”. Can you post your contract (redacting all personal info)?

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You’d need a carfax to see if it was registered or not.

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As @andyecon stated, BMW of San Antonio does still have the listings on their website. Unfortunately, none with Carfax reports.

Maybe a dealer can help run some reports for us to see the results? Below are some VINs that are listed at great discounts. @Samson @GAngellBMW @BMW_Dave @YourNextBMW @Cody_Carter

WBA8E1C56JA178635
WBA8E1C58JA178653
WBA8E1C5XJA178654
WBA8E1C53JA178656

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WBA8E1C56JA178635 - No carfax
WBA8E1C58JA178653 - No Carfax
WBA8E1C5XJA178654 - No Carfax
WBA8E1C53JA178656 - No Carfax

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Thanks so much. No Carfax probably means new and untitled?

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Correct. Ran a new toyota vin to confirm it would return same result.

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Sec, moving to Texas…or Georgia…or Illinois.

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He’s Trophy link: Trophy Garage [ Photos ]
Congrats!

1 Like