Please PM the contact of BMW SA and I would like have a try.
Thanks.
Have you read the thread at all?
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Thanks, I should read through the whole messages first.
I’m curious why other dealership in central TX don’t provide this option for customer?
BMW South Austin said they can do Owners Choice, but only had high MSRP cars and could not get close to San Antonio on price.
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Hey guys! What do y’all think of doing a one pay on the lease term? I have a dealer who’s willing to do 1% sales tax if I pre pay the lease.
I know putting down money on a traditional lease is always bad but any suggestions with respect to owners choice?
Are they lowering the MF from the base Owners Choice MF for a one-pay? Make sure they’re not inflating it already. The 1% sales tax should be available anyway but if you’re maxing out the other savings they might hold it back.
They said it’s a buy rate so Apr or MF isn’t into play. Although to be honest I don’t know what “buy rate” means.
What happens if the vehicle is declared a total loss? If it was a traditional lease I would lose all the money I put down. Is owners choice any different?
Edit : @ajgraham
The buy rate is just the standard MF that BMW financial would set, and has not been inflated by the dealer to pad profit. I would double check what they’re saying though to make sure, Owners Choice APR is always higher than the normal lease APR. If there’s no saving with the one-pay you’re best paying monthly and earning interest on the remainder.
Re: insurance, good question regarding the one-pay Owners Choice insurance. I’d assume as it’s really a balloon payment loan, structured with a break clause, you’d get the extra money back like you would with a loan. I remember it was spoken about recently with Owners Choice but I can’t remember what the outcome was. @andyecon might know?
I wasn’t offered any interest rate discount from prepaying, and from what I can tell it would just be equity.
Apologies that 2nd paragraph ramble was about the insurance payout for Owners Choice with a down payment. I’m assuming as it’s really a balloon loan that you would get the down payment back in the event of a total loss, unlike a lease down payment? I don’t think you put any money down though on your deal.
@ajgraham They’re offering me a 1% sales tax rate as opposed to 6.25% on full price of the vehicle here in TX. That’s close to $2k in savings if I pre pay. Which is why I’m considering doing one pay.
Edit: I’ll double check with them on the APR/MF tomorrow.
Oh, yes, I think you’re right, insurance would pay the loan and then whatever you were in for. That is if you carry the full cost.
Are they offering it on a lease or Owner’s Choice loan? I was getting that deal on leases, but never Owner’s Choice.
If you can get the OL for test drives to work, and the sales tax discount, you may even make a few bucks!
Will there there be a problem if there is a “gap” i.e if the Market Value is lower than the Amount we Owe. (i.e. the reason for having a gap insurance). I may be wrong also!
Yes, if you carry less than what you owe and the car is totaled then you will need to pay the difference. I personally prefer to accumulate such a rainy day fund rather than insure completely, but you can always get gap insurance.
Start a new thread with your deal details, round the MSRP amount to hide which vehicle it’s for and @ tag us so we see it and we can help you. The Owners Choice deals are great but the numbers are complicated especially with tax credits.
@andyecon Does Owners Choice not have gap coverage built-in? I thought it was included if below 80% LTV. Ref:
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I’ll check my contract.
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@ajgraham and @andyecon owner’s choice doesn’t include GAP by default. My contract GAP not included. But the Finance guy at the dealership told usually you don’t need a GAP if the LTV is 80% below.
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I am in Texas and interested in getting this deal (if its still available). Couple of questions
a) Does the federal tax credit is true tax credit that we can claim irrespective of itemizing the deductions (not the sales tax deductions in itemization)?
b) Any updates whether its still feasible to get the Texas EV credit. The TCEQ link that some one posted above shows 170 still available.
Thanks in advance
I called the department today and was told there is still a few left, but need to hurry if I want to apply, plus it can be ended anytime soon, because she receives ~30 applications per day.
Anyway, I just expressed mailed out my application today, which will be delivered tomorrow.