BMW international executive MF/DTI



I was hoping you guys can shed a bit of light on the BMW International Executive program at BMWFS.

I just moved to TX on an H1B and would like to lease a 440.
I’m from Canada, with great Canadian credit history and multiple leased BMW with BMWFS Canada (lengthy car payment history without blemish), but that obviously counts for nothing, so 0 credit history in the US.

What kind of MF bump am I looking at on the International Executive program? And what kind of DTI are they requiring vs required cap cost reduction? Lease would be 36/10k in TX.

Doing my homework to prevent the dealership from taking advantage.


Not a direct answer to your question but as a new resident you may not be familiar with how taxation (sales and usage taxes) vary wildly from state to state.

TX is one of the few states that taxes leases as if they were purchases (occasional rebates aside).

So if you’d owe 6% on, say, a $70k purchase, you’d have to pay the same $4,200 plus interest over the course of the lease. Or pay it all upfront.

Rinse and repeat every time you lease.

Thank you for the heads up; I had indeed read that about TX sales taxes on a lease, and the fact that if you buyout the car at the end, you get taxed a second time on the buyout.

In my preliminary shopping, I was told that putting down 1x MSD would reduce the sales tax from 6.25% to 1%. That seems weird, so I’m doubting the accuracy of that statement.

Definitely not the case. MSDs reduce the MF, not the tax.

There’s a weird loophole in Texas law that allows the captive (BMWFS), as the owner of the car, to treat lease turn-ins as “trades” and essentially negate the tax to 1% or 1.25%, rather than 6.25%. It’s only when it’s being offered, and they don’t allow it on every car.

As an international executive, the bump on the MF is usually 0.0001, but with zero credit in the US, it can be a little harder, but not impossible. I honestly haven’t worked one of those deals in a few years, but I remember most people had established some credit history with US credit cards first.

Regarding the MSD exception going on right now for lender tax credit. We can’t lock it so it would really have to be on something that arrives in the next 30-45 days as I was advised unless it’s a PHEV or BEV type.