The X5 PHEV has a $7500 tax credit, does this money factory into the lease to decrease the adjusted capitalized cost?
Also anyone knows how the $5000 clean vehicle assistance program works for CA residents on the lease.
thanks
CVAP is applied as a capitalized cost reduction on a lease. That said, I’m not sure an X5 would qualify. The eligibility requirements for a PHEV is 45 MPG minimum combined. The X5 xDrive45e gets 20 MPG combined and 50 MPGe on electricity.
Regarding the tax credit, check on Edmunds if there’s lease cash on this model. BMW may choose to pass only a portion of the tax credit.
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If Micheal doesn’t answer this fully.’
No, BMWFS chooses what to pass, if they don’t pass it as lease cash, kaput.
There is 1k loyalty, 500 lease credit afaik.
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It’s actually 50 MPGe combined electric and gas, and 20 MPG gas only. So it should qualify.
Not for a lease
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I might be remembering incorrectly but the credit applied to my 2017 i3 lease.
Or maybe the rebates have changed
The federal tax credit does not apply to any leases.
The manufacturer may (and often does) offer an equivalent amount incentive if they so desire.
If it had applied, it would not have been included on your lease and you would have had to capture the $7500 as a tax credit when you filed your taxes.
The state specific credits/rebates are sometimes handled differently
That is correct and it has been discussed a few times on other threads. For example, no incentives amount close to the entire tax credits are offered on the 330e or 530e.
The X5 Hybrid appears to meet all the requirements of the CVAP program, so it should qualify for that program on either a lease or purchase. https://409x7yggc5ekrbd32lf9ajv2-wpengine.netdna-ssl.com/wp-content/uploads/2021/01/Vehicle-Requirement-Checklist.pdf
However, the CVAP program has pretty strict income requirements, so many people that could afford/qualify to buy/lease an X5 would probably have too much income to qualify for the CVAP. The income requirements are listed at Eligibility - Clean Vehicle Assistance Program
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I don’t understand, back when I leased my 2018 330e, why all bmw dealers were offering exactly the amount of the federal rebate quote uniformly. If the dealers decide they just want to start offering rebates, why exactly equivalent to the rebates? I would think they would start with, say, $3000 of the $7000 (later it was $7500 in early 2019), and go from there. Why all or none?
Also, what triggers the decisions to start offering these grand rebates? If it’s just supply/demand, again, why pick the exact rebate amount?
The dealer doesn’t choose what rebates are offered, the manufacturer does.
The manufacturer chose to pass on an incentive equivalent in amount to the federal tax credit.
Ah yes, that’s what I intended to say, mfr not dealer. So effectively if the mfr chooses to pass an equivalent along, for practical purposes, “the federal rebate is passed on to the lessee”.
If the decision to offer such incentives is based on marketing, why is it all-or-none equivalent? Is it just the caché of offering “the federal rebate”? Not trying to be argumentative at all, just trying to understand the rationale. There are a lot of things we may never understand when it comes to mfr, but LHers are more enlightened than most, so maybe someone has insight.
You are correct that BMW passed/passes $7500 on with the i3 w a lease.
They do not with the 330e, X3e, or X5 45e. With a purchase, you would have to handle this on your own.
X3 and X3e incentives are the same
X5 and X5 45 e are the same
The 330e has $2000 in loyalty for 21v the $500 for the 330i
It isn’t. It’s very often that a manufacturer passes on only part of the incentive.
Another Ah. BMW included?
It’s the equivalent of asking why a car’s 36/10k RV is 55%… why not 53? Or 57? Can anyone definitively say one is more accurate than than the other?
Everything inside a lease program (RV, MF and incentives) is designed to try to meet revenue and profitability goals. That’s really there is to it. It’s just one piece of a program designed to entice feet inside doors and move metal off the lot.
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