BMW discounts - taxed incentive vs. untaxed incentive vs. selling price reduction

So I am looking into a lease for the 2023 330i xDrive.

The lease deal includes $1,000 in “dealer contribution”.
I also qualify for BMW’s grad discount of $1,000.

My question is: on the calculator, which box do I add each respective discount in? Confused between “Selling Price”, “Taxed Incentives”, and “Untaxed Incentives”.

“Dealer contribution” means “discount.” Recent grad is a taxable incentive. BMW incentives are direct to customer, so unless it’s a state that doesn’t tax incentives (NY isn’t one of them), the $1,000 for recent grad is taxable. The only incentives in NY that aren’t taxable are those that are paid directly to a dealership, which BMW doesn’t have.

If you’re looking at a lease deal on a dealership’s website or the BMW website, most of us here can do better than 2% off on a 330ix.


Thanks. Roughly how much off msrp ($52,370) can i expect a broker to get me in current market (assuming custom order and willing to wait upto 6 months for delivery) ?

Search in Marketplace to get an idea.


Having bought a pricey vehicle when I was a new grad, it’s hard to fight back the urge to tell you a BMW right out of college is a terrible idea, even as a lease. So, I won’t do that. Definitely won’t provide financial advice.

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It depends on availability. I know that I only have a few stock vehicles now, so you’d have to go into the order bank to wait for a car. 5% is a solid bet though, considering that these haven’t been that easy to get since the LCI debuted.

Thanks for this advice. Helps alot getting real perspective from someone in similar position. I’d be spending 29% of income on the car, which i now realize is just plain stupid for a 3 series


Yep. My wife is getting frustrated at me for suggesting spending 10% post tax income on a car. Which is also stupid. But I want it :laughing:

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At least you realized prior to making the purchase. Hold off and see if inventory comes back in 2023. BMWs aren’t good lease candidates right now (low RV, high MF, lack of incentives).

That’s an extremely high % … for any car. Glad to see you’re thinking it through.


Yikes that is really high. Just an aside that you wouldn’t qualify for recent grad under that scenario, either.