Why don't dealers pass on Federal Rebate savings in lease?

Looking to lease an X5 45e. You’d think that because of the $7,500 federal rebate, BMW financial would pass on some of the savings to the customer. But with the lease deals I’m getting, it’s looking like I might as well buy the car and take the rebate myself. Why aren’t dealerships willing to negotiate more on cars they will get rebates for?

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because there is a sucker for everything
oh you are getting XXXX off why discount it

Dealer doesn’t get the federal rebate.

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Why wouldn’t a finance company be able to claim a federal rebate on a vehicle purchase? I’d love to read about this if you have a link.

The dealer and the finance company are two separate entities. If the finance company does not want to pass along the rebate, there is nothing the dealer can do.

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Show me where in the program from BMWFS you see $7,500 in BEV credit at point of sale for an X5 45e.

I’ll wait.

While we wait, I’m offering over 6K off front end on a i4 40e that’s in stock. :grin:

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BMWFS is not offering it. Gov’t is offering it. That’s my point. I’d have to buy it to see any of it. No one’s passing on any lease goodies.

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They may be passing it on in the form of an inflated residual value in the lease programs. Not all pass throughs are direct cap cost reductions.

Or they may not be at all. They have no obligation to do so other than market pressure.

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Why does the i4 40e get more discounted than the X5 45e? Also, I love the 40e. Would trade my 2018 440i for it, but need to get the x5 45e first for wife.

Most likely because x5s sell better

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The real answer is natural demand vs supply at the existing price point. If they can move the produced volume without giving the tax credit away, then there is no need to give up the tax benefit as an interest-free loan to the consumer.

EV incentives (from future tax credits) are used when they can’t move the volume. I believe we are a long way away from that for many of the vehicles that qualify. Now if a 3rd party lessor has a program that can beat the captive on their lease by passing some of that tax credit through to the consumer (juiced RV or cap reduction) then the captive may eventually change course to retain their market share (and some of the tax credits). Because some tax credit for a captive is a lot better than none and they get none when the vehicles are sold as a purchase or leased by a 3rd party lessor.

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So, how does treasury department directive from Yesterday change things?, will consumer get ev credit directly from Feds on leases now? I see no more USA/ North America assembly requirement on leases,battery component sourcing?, who knows, income requirement still there on leases? Talk about a fluid situation, I have a feeling these rules will change 3 more times by the end of 23🤷🏼‍♂️

Same reason why Model Y is 8k more than a Model 3; too many people are suckers for SUVs.

Why make less money when more do

As far as I can tell (assuming the regulations go through as proposed yesterday), the Manufacturers’ captive lender or bank will get the tax credit on leases, and they will decide whether to pass some or all of it through to the folks that lease the EVs.

I will not lease an EV if manufacturer refuse to pass the $7500 credit on the lease. Why US taxpayers money going to manufacturer and not to the consumers. I wish Govt has some legal wording to get around this loophole. I am sure real intent of this credit is to benefit the consumer not the manufacturer. Call your local govt representative.

The ev credit under section 45 will go to the lessor, just like it does now.

There is no income limit, msrp limit, battery limit, etc under section 45.

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Unlikely. Section 45 is the commercial ev credit section for commercial entities. If anything, their intent was to only benefit corporations and theyre mad it may help consumers.

And who is mad now. The govt or the manufacturer?
Few Manufacturer do pass that credit on lease like Jeep 4xe, VW ID4 and few more… Ford, BMW not doing it…

Manchin.

Just because a bank doesnt pass it in directly as a cap cost reduction doesnt necessarily mean it doesnt get factored into their lease programs.

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