2018 BMW xDrive40e lease - 36 months/12k miles - Need help!

Folks, rookie here. Would like your thoughts and feedback. Does not follow the 1% rule. This is in Texas.

MSRP = 71,410
Discount = 5,200
Selling price = 66,210
Doc fee = 150
Acquisition fee = 925
License fee = 118.25
Cap fees = 19.75
Cap Taxes = 4,049.36
Gross Cap Cost = 67,154.75

Cap Cost Reduction
Cash down = 2,500
Total rebates = 3,250
Amt applied upfront = 1,276.47
Total Cap Reduction = 4,473.53
Net Cap Cost = 66,730.58

Term = 36 months
MF = 0.00222
Upfront charges = 333.25
Initial payment = 5,750
Due on delivery = 2,500
Monthly Payment = 943.22

Effective payment over $1k for an outgoing X5? I don’t care that you’re in TX, NO THANKS!!!


I’m guessing this is from Austin or San Antonio? They have a huge number 40e’s.

The MF is marked up and discount is minimal. That’s a really highly optioned model so numbers will always be higher than other deals here.

Houston actually. Called a couple of places and 0.00222 seems to be the number every dealer is holding on to.

Does the $2500 from you come back to you from Texas in the form of a tax credit/rebate for an electric vehicle?

Yes, Texas has a program called TERP where the lessee gets $2500 back on a 3 year lease.

I would probably push for a bigger discount and also see if they can help you out with the taxes. The 40e unfortunately doesn’t lease nearly as good as it did a year or two back since the incentive changed. You might also want to see if you can find an OL code that you could use.

1 Like

Good trick with BMW or Mini, for anything with a rebate which requires you to be the registered owner like the EV federal and state rebates use the BMW financial product called Owners Choice (I think it’s Texas specific). It’s like a lease in that you have a break period where you can hand the car back after 3 years but the vehicle will be in your name unlike a lease. That will mean you can apply for the rebates that will bring the effective price way down.

You’ll also get the BMWCCA rebate for $1k for any new X5.

That said most of the BMW dealers here are not competitive, and most are part of the same company. If you’re flexible in the hybrid you’re looking for the Mini Countryman EV can be had for a competitive price at the moment with little work, e.g: Trophy Garage [ Photos ]

1 Like

Did you check advantage midtown? they have a demo available. Does this qualify for the 5002 from the government? If so that dealer is “giving” you a ~200 discount. Walk away.

Yes, the lessor qualifies up to $4668 in fed rebates which they should technically be passing down but they are not. So yes essentially a $200 discount. :frowning:

What does the “Rebate” under cap cost reduction do? Does not seem to have an effect at all on the monthly payment?

Well, I assume you’re just getting the federal rebate and nothing else. Your rebates under cap cost are a wash because you’re paying tax on the selling price. I would walk away from wherever this deal is. I would ask for tax credits on top of everything. Dealers can (but most will not) go to 1.2%.

1 Like

Go via the Owners Choice option and you don’t need to beg and plead to get the rebates via BMW, it cuts out the middleman. That way you’ll get the $4668 from the Fed, $2500 from the state. Plus the $1000 via BMWCCA on top. That way you can just work on trying to get the base MF and a healthy discount off MSRP.

The tactics would be to just focus on getting the MSRP down a good amount, don’t mention finance options. Then if they’ve knocked a good amount off mention what that would look like with Owners Choice financing. That should get you to a good payment.


ajgraham, yes that is going to be my next step. just going to shop around for the best deal i.e. get the most discount off msrp. thanks for the tip!

No worries, I was in your shoes 2 months ago looking for a 40e and it was hard work in Texas. With the interest rates going up it’s even harder work. Don’t do what I did and end up with an X5M…

If you want to add an extra layer of discount/complexity look into Texas sales tax credits, mentioned on a few threads here.

Good luck and let us know how you get on.

1 Like

BMW of San Antonio should have good discount on their 40e, make sure you discover the benefit for doing Owner’s Choice if you are not doing the purchase.

1 Like

Yes, will go on my quest and keep you all updated! Thanks so much for your inputs. Appreciate it ya’ll.

Here is another deal I got after going back and forth quite a bit. I asked for a base MF and they said by providing base MF, it’ll reduce the monthly payment only by around $30 or so. They said I was i was getting an “amazing” deal as I am effectively getting $12K off and would be crazy not to sign it. Owners choice payments be “similar” according to them.

No reduction in taxes, so effective reduces the discount to around $3,750. Still seems way off from what others are getting…what you ya’ll think?

MSRP = 71,235
Discount = 7,750
Selling price = 63,485
Doc fee = 150
Acquisition fee = 925
License fee = 118.25
Cap fees = 198.50
Cap Taxes = 3,897.62
Gross Cap Cost = 65,206.50

Cap Cost Reduction
Cash down = 0
Total rebates = 4,250
Amt applied upfront = 917.03
Total Cap Reduction = 3,332.97
Net Cap Cost = 65,771.1

Term = 36 months / 12k miles
MF = 0.00222
Upfront charges = 0
Initial payment = 4,250
Due on delivery = 0
Monthly Payment = 917

Couple of things stand out, the stock is really low I only see 14 within 500 miles of me in Houston and as normally happens almost all are the higher MSRP models so you may end up paying slightly more even if you get a great discount with them being the outgoing version. Most of the ex-loaners seem to have already gone as well.

They’re still marking the MF up from .00182 so that’s adding quite a bit on top, and with only a 10% discount that’s what’s padding the monthly cost. Have you mentioned sales tax credits to them? If you want to stick to a lease then you’re going to need more discount, a lower MF, and/or tax credits. It’s not uncommon for a dealer to give tax credits and a better discount but mark up the MF, if that gets you to a good monthly then it doesn’t matter how they make their money.

Perhaps the easier way might be via Owners Choice though if they’re hellbent on marking up the MF. Basically if you can get those numbers with Owners Choice then you could claim back the $4668 Federal tax rebate (https://www.fueleconomy.gov/feg/taxevb.shtml) and the $2500 state rebate which effectively makes your $917p/m ~= $700p/m ($7168 = >$210p/m). With Owners Choice you should still get the $4250 incentive from BMW so they should still be at the same Net Cap Cost. I’ve only lived here for under 2 years though so make sure you check the tax situation to make sure you’re going to get all of the use of the Fed and state tax rebates otherwise the numbers don’t work. @BMW_AUS will know more about this as he’s just been through this situation with his Mini hybrid.

Also add in the BMWCCA rebate of $1k and you’d be well under the 1% payment target: https://www.bmwcca.org/vehicle_rebate

Thanks for the feedback. They said their MF buying cost was .00182 so if they provide the same to me they would lose $. Not sure if I believe that.

quick question: Would the Owners choice still be eligible for the the tax credits? OR do the tax credits be passed on to me only if I lease the vehicle?

Owner’s Choice gets you the tax credits. Ask the dealer if there are BMW sales tax credits available. They do these for states like Texas where we pay tax on the full value of the car. For example, we recently leased a Lexus and Lexus had credits that dropped the sales tax rate to 1% . Doesn’t cost the dealer anything.