Flagship Money M850i

Hi - I’m taking delivery on a M850 next week. I would like to know if flagship/trunk money is taxed? I know corporate fleet rebate is taxed, just would like to know what else is taxed. Thanks!

Flagship is not taxed.

Dealer is telling me flagship is taxed. What do I need to show them?

tell your dealer nicely to please double check with BMWFS, since FS is not disclosed, they do not need to list it as an incentive and reduce the selling price…

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If a rebate is listed as incentive on the contract it can be taxed.

Flagship is backend money dealer gets which is used to discount the sales price and there is no way they can show it on contract to tax it.

Is flagship money the same as the suggested dealer contribution they advertise in their lease program…or Is this strictly money separate of that the dealer makes for pushing inventory and reaching sales goals…

Basically, I got:

$22,895 off MSRP (discounts include: Flagship, Dealer contribution, Corporate Fleet Sales $3K and PenFed $500). Just trying to see what is taxed and not. I live in NJ (7%) tax. When I backed in taxes to sales price, it was 7.33%. How can this be?

MSRP: $117,395
Discount: $22,895
Sale Price: $94,500
Taxes: $6930.18
Govt: $310.50
Doc: $699
Final Amt: $102,440.31 (If financed)

So if taxes are 7.33% then they are taxing some of the discounts.

Is it a new car or a fart car? Maybe you’re forgetting the mileage adjustment if it’s the latter.

$3500 is taxable edit: plus some fees as noted below by @j_e_f_f

You sure the luxury tax in NJ is 7% flat?

@ikbcc Also what is the net difference between what they’re proposing and your calculation?

In this case Corporate and Penfed would be taxed incentives so the tax base would seemingly be $98k however sometimes fees and other small things can be taxed as well.

Also, have you verified that you can stack Corporate with Penfed? Typically Corporate doesn’t stack with any incentive except lease cash.

You can stack Corp and Penfed in most cases. But, when you run Corp, it disqualifies you from BMW CCA post sale.

In this case the $3000 for Corp is worth it.

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Everything on the contract. Is taxable except reg.
Your taxable amount:
94,500 + 3000(C/F) + 500 (Pen) + 699 doc
Total taxable amount: $98699
Nj tax 6.625 + .40(LUX) = 7.025 (tax rate)

$98,699 x 7.025 =$6933.60

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You drive luxury car? The gubmint needs its share. Welcome to tax hikes :slight_smile:

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There are two separate taxes in NJ.

The total of your payments is taxed at 6.625%

The selling price is taxed at 0.4% if above 45k

Ignore everyone who thinks these two tax rates on different taxable bases combined equals 7.025% of anything

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thank you very much.

appreciate everyone’s knowledge.

My local dealer telling me there is no flagship money for 2021 m850 in California. Is that true?

i would call another dealer to make sure… not sure if varies state by state.

I’m also in the market for a 21 M850i Coupe. Can anyone please confirm the total flagship cash on this car for April?

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