This is a weird combo and I don’t see it being mentioned before. Just out of curiosity:
I’m in Texas, can I pull Owner’s Choice + MSD + 1-pay together on one single lease?
From what I understand, in Texas 1-pay lowers sales tax to 1%. Generally 1-pay lowers MF by 0.0003.
I assuming these 2 don’t stack, can I still put up MSD to lower the MF further more?
Do all these even make sense under Owner’s Choice?
No MSD and one pay
That makes sense… Since most people out of Texas use one-pay to lower MF. However in Texas One-Pay lowers sales tax, not sure if it also lowers MF as well
It lowers the MF but the MF is lower with MSD’s and monthly payments.
Lowers both…
Thanks for the confirmation! That’s very helpful!
Ok so looking at this again. If you are doing 1-pay and getting a reduced sales tax rate of 1% for that in Texas why even consider owner choice? I dont believe you would get a reduce sales tax rate with owners choice since the vehicle would be under your name and no sales tax credits available. However it would help out on your next owners choice lease as it would essentially be a trade in and you would get a credit against sales price for the trade in.
Everything has its costs…OC good for tax credit bit going from “lease” to “lease” but bad on added interest however has no acquisition fee (which means you have to buy GAP yourself)
Why I didn’t think this way yet, thid makes sense, thanks!
Right, and honestly I don’t even know if the concept ‘‘gap’’ is still existing since the car is only financed as a lease.
If the payoff is greater than market value and you total the car, you’ll be glad you had gap.
So is it possible to do one pay with OC? And if so, does it lower apr and or taxes or is that just for lease? I’ve been looking for info on owners choice!! Thank y’all!
There’s no tax credit for OC. OC is financing the whole car with a balloon/return clause after the negotiated terms. You pay full tax on the car value.
On APR I’m not sure, I haven’t attempted to do that yet. Also keep in mind you lose gap insurance by doing OC
I figured that much about the tax part. I did read about gap not being on there. If anything this can be remedied with GAP from my own insurance, right?
I’m not aware that you can one-pay an OC product but I’m positive that you cannot get tax credit as it is effectively a balloon purchase.
Technically yes but definitely pay attention to the clause. Normally your insurance company will provide a percentage of purchase price as the “gap coverage”, it can be anywhere from 10%-50% typically. Say you are about to OC an i3 you need to pay extra attention on the coverage as the gap can be substantial, things like 15% may not be able to cover you. This is just a random example on top of my head but you get the idea.
When you make a purchase out of state do the credits, like lease credits, and incentives, like loyalty and conquest become available to that dealer based off customer zip code? Or is it only what is on the BMW website or in that region where the dealer is? I hope I was clear. I have some doubts about info I heard. Thanks for the help!
Dealer region
Damn so the 2k loyalty available, for a 3 or 5, in tx wouldn’t necessarily be available in another state? Just whatever that loyalty is locally? I learned something new today thanks!
Don’t quote me but I think loyalty is nationwide (like MF and RV) even if lease cash isn’t.