Signed: Loaner 330e $49,945 MSRP - $347.14/mo, $0 DAS... Titled In My Name!



Here is the background. I’m in Texas, so leasing is rough: you have to pay taxes on the full sales price unless you can get tax credits. So, BMW has an interesting financing product - the Owner’s Choice balloon loan, that gives low payments for a short period (like a lease) with a balloon payment (the residual) due if one wants to keep the car (but maintaining the option to return). So, this is the best I can approximate my Owner’s Choice loan with the calculator:

**MSRP: $49,9xx
**Selling Price: $40,6xx
**Monthly Payment: $347
**Cash Due at Signing: $0

**Annual Mileage:10k
**Residual:0.65 (after mileage deductions)

**Leasehackr Score: 11.5

Given the taxes, the deal is quite good - a hacker score of 11.5 years. Total payments of $8322 over two years. I’d be happy enough with this…

But! The Owner’s Choice is a loan, which means that the car will be titled, for its first time, in my name! Which means that I can claim tax credits of $4001 on my federal return and a rebate of $2500 from the state of Texas, which would bring the total payments to $1821 ($76/mo) and a hacker score of 46.1!

2018 BMW 330e Black edition **Loaner**. $49,035 MSRP - $186/month $1600 DAS + MSDS

Sounds too good to be true. You should verify with an accountant before signing.

If it is true, all I can say is W.O.W. & goodjob

Kia Optima Lease in NorCal - Is this a good deal?

Everything I can find says it just has to be a newly titled vehicle… for legal purposes, I own the car the same way that anybody who finances would, I just have a guaranteed sales price in two years.

Anybody else ever done this?

Trophy Garage [ Photos ]

Technically it sounds correct to me. You are the legal owner and BMW FS is the lien holder. Unless BMW FS somehow claimed the tax credit, but I don’t think they could. Nice hack.


The resale value is guaranteed? ie BMW will buy it back from you at that price no questions asked?


I don’t know anything about that program, but the logic seems pretty sound. I’d chat with my CPA about it for a minute for a second opinion, but that sounds like an excellent hack!


I’d love to read over the contract on one of these


I’ll post it. My understanding is it is a balloon payment loan, with a set buyback price. Of course, the buyback price is reduced by excess mileage and damage. The intent is to replicate a lease with a loan.


Wonderful Hack, enjoy your new ride.
Regarding the OwnersChoice there are few posts in the past where they have successfully claimed it.


Owner’s choice does allow you to claim the federal tax rebate, but only if new. Doesn’t the lease agreement list demo/loaners as used?


They’re sold as new cars and you can check that the VIN’s have never been titled or registered, so everything I’ve read indicates that they’re eligible.


Sorry, by “they’re” I mean the loaners for sale at BMW of San Antonio… they still list 97, but I gather they sold some today.


I know BMWFS considers them as “new” for leasing purposes, but does your contract list it as “new”? From what I’ve seen, demos/loaners were listed as “used”. Can you post your contract (redacting all personal info)?


You’d need a carfax to see if it was registered or not.


As @andyecon stated, BMW of San Antonio does still have the listings on their website. Unfortunately, none with Carfax reports.

Maybe a dealer can help run some reports for us to see the results? Below are some VINs that are listed at great discounts. @Samson @GAngellBMW @BMW_Dave @LBBMW @Cody_Carter



WBA8E1C56JA178635 - No carfax
WBA8E1C58JA178653 - No Carfax
WBA8E1C5XJA178654 - No Carfax
WBA8E1C53JA178656 - No Carfax


Thanks so much. No Carfax probably means new and untitled?


Correct. Ran a new toyota vin to confirm it would return same result.


Sec, moving to Texas…or Georgia…or Illinois.


He’s Trophy link: Trophy Garage [ Photos ]