Lease program valid through May 31st, 2017.
I admit the title sounds almost too click-baity. But just carry on reading. I based this post on what is available in California, if you happen to not live in California, please post if theres any incentives in your state. Also, I copied bits and pieces from a previous i3 deal on the main page so be prepared to see a lot of similar text.
No, you’re not going to walk into the dealer and ask for a $130-140 per month deal, because the dealer likely doesn’t know it’s possible. Rather, you should discuss numbers with dealers to first establish the selling price of the vehicle. Then, once you’ve decided on a dealer, apply clever strategies and targeted incentives to bring the lease payment down. Do not mention what you qualify for right off the bat, no BMW dealership is going to want to let a car go for $130-140 a month.
The payment in the title is assuming you can qualify for the Low Income CVRP which is $4,500.
Let’s go over the factors that make this deal possible for certain individuals.
1.) Incentives
The following incentives are available to nearly all California residents:
- BMW Lease Cash: $7,500 (Taxed)
- BMW Corporate Fleet: $1,500 (Untaxed) and a 0.0002 reduction on the Money Factor
- California Vehicle Rebate Program (CVRP): $2,500 ($4,500 for low income households)
The first incentive ($7,500) is massive because, as an electric car, the i3 qualifies for a $7,500 Federal Tax Credit. On a lease, the federal tax credit goes to BMW Financial Services, who then passes on the savings to you in the form of Lease Cash.
The second incentive ($1,500) is BMW’s Corporate Fleet Program, it also provides a 0.0002 reduction on the Money Factor. You can become eligible for this by joining AARP for $12 and there is no age requirement. May, 15 UPDATE, some people have reported that dealers have told them that you had to be a member of AARP before the program started, so YMMV, but also check if your employer is a company in the Fleet program. Note, on May 31st, 2017 eligibility through AARP will expire.
The third incentive ($2,500/$4,500) is actually a mail-in rebate offered by the State of California. You can choose to front the money as drive off/down payment and then receive the rebate about a month later. It requires a minimum lease term of 30 months.
2.) Current Lease Programs
BMW Financial Services offers 24, 30, and 36 month lease programs. Here are their respective residual values (assuming 10,000 miles per year).
- 24 Months, 64% Residual
- 30 Months, 61% Residual
- 36 Months, 58% Residual
Without the CVRP, the 24-month term is cheapest. However, the 30-month lease comes out ahead when you factor in the CVRP, which cannot be applied on a 24-month lease. Go for the 30-month lease if you want the deal.
3.) Use Multiple Security Deposits To Buy Down The Money Factor
BMW FS has officially killed the MSD program.
4.) Breakdown Of Sample Lease:
Year, Make, Model, and Trim: [2017 BMW i3 94 AH]
MSRP: [$45,595]
Selling Price: [$40,350]
Rebates: [$7,500 Lease Credit]
Untaxed Rebates: [$1,500 Corporate Fleet]
Down Payment: [$2,850]
Months: [30]
Annual Mileage: [10,000]
MF: [0.0013]
Residual: [61%]
Total Due At Signing: [$4,500]
Monthly Payment (incl. tax): [$135] ($125 without)
Sales Tax Rate: [8.75%]
As you can see, the Low Income CVRP also covers drive-offs. If you don’t qualify for the Low Income CVRP, you could choose to only put down $2,500 for drive offs plus security deposits, your payment should be roughly $70 more a month.
I have been able to negotiate this deal with two Southern California dealers. So this is very much possible and real.
I believe there’s also other rebates based on where you live in California like for example. San Joaquin Valley, Drive Clean! Rebate Program, which is $3,000 on an i3. A $500 Rebate if you live (and purchase) in the City Of Riverside. If theres more than what I listed here, please post it and I will edit accordingly.
If you happen to reside in the San Joaquin Valley and qualify for the Low Income CVRP, then this lease effectively becomes FREE!
PM me if you would like to know what dealers I was able to negotiate this with.