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BMW i3 / i8 / ActiveE
Are you excited about the upcoming BMW i3 or i8? Interested in learning more about the BMW ActiveE? This is the place for you!

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  #1  
Old 12-27-2013, 06:52 PM
knbcpab knbcpab is offline
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No Lease Available on US i3?

Just got off the phone with my GSM friend in So Cal. Been excited about leasing the new i3. But he told me Quote: "They won't be doing leases. Will be available on a ballon purchases which give you ownership with a buy out at the end. BMW is doing this for tax purposes? Can someone confirm or explain what this means?
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  #2  
Old 12-27-2013, 07:00 PM
knbcpab knbcpab is offline
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Ballon Payment info?

This is what i just found. Please correct me if i'm wrong, but it seems like at the end of the term - you can turn car back in but will be responsible for the 7500 added to the final cost. Even if you turn back in, you got to pay the 7500?


BMW i FINANCING

Overview
Financing Products
Flexible Payment Options
Protection Products

FINANCING PRODUCTS

At BMW Financial Services, we believe vehicles this revolutionary deserve equally innovative leasing and financing opportunities. Just as BMW i is more than just a form of transportation, BMW Financial Services is more than just a means to owning a vehicle. We are dedicated to making your BMW i ownership experience as easy and rewarding as possible.

OWNERSCHOICE1

Enjoy all the benefits of vehicle ownership with flexibility similar to a lease. At the end of your OwnersChoice term, you have the option to sell your BMW i back to us for the predetermined price and walkaway, choose to keep your BMW i by paying off your remaining balloon balance in full or may be eligible to refinance through BMW Financial Services.2

OWNERSCHOICE WITH FLEX
OwnersChoice with Flex is designed to further lower the monthly payments for your BMW i.3
Here's how OwnersChoice with Flex works: We will increase your final balloon payment due at the end of your OwnersChoice BMW i contract term by up to $7,500.4 The increased final balloon payment reduces the amount of your regular monthly payments, and at the end of your contract term, you will owe the increased balloon payment amount.

As with our regular OwnersChoice product, at the end of your contract term, you have the option to sell your BMW i back to us for the predetermined price and walkaway.5 If you choose to sell your BMW i back to us, you will also owe the Flex amount (which is the amount by which we increased the balloon).6

Alternatively, as with our regular OwnersChoice product, you may choose to keep your BMW i by paying the final balloon payment amount in full at the end of your contract term — or, you may be eligible to refinance the final balloon payment amount through BMW Financial Services.7

At your option, you may choose to make prepayments during your contract term that will reduce the balloon payment amount. The sooner you choose to prepay and reduce the balloon payment amount, the lesser finance charges you will owe.

TRADITIONAL FINANCE
We offer you a choice of flexible terms, attractive rates and customized financing to fit your personal needs. With the benefit of ownership, you can pay off your balance in full without financial penalties, or extend the term at any time.7

LEASE
BMW Financial Services works to meet your personal needs with customizable lease terms and mileage options. Leasing does not require the same cash commitment as a traditional financing product and you only pay for the usage part of the vehicle. At the end of your lease you have the flexibility to turn in your BMW i for another, release for an additional term, buy at the set agreement amount or turn it in and walkaway.

Every finance and lease option comes with BMW Financial Services' award-winning customer service. This includes flexible payment options and an array of protection products created specifically for
BMW i drivers.
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  #3  
Old 12-27-2013, 08:28 PM
knbcpab knbcpab is offline
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I don't have all the details, but yes it is a lease basically a lease regardless of what they are calling or structuring it. The $7,500 balloon payment is because the federal tax credit is $7,500 for the i3. You don't get the tax credit if you lease it, the "owner" does which is BMW FS and they don't qualify for the full $7,500 like individuals do so BMW created this "lease that is structured like a sale" so you can take full advantage of the $7,500 federal tax credit. It benefits the consumer, not BMW. Although it kinda benefits them also because it should help them sell (lease) more i3's. Also, I'm pretty sure you don't have to do it this way if you don't want to, but I don't know why you would pass up on savings. Plus, you can prepay the $7,500 when you get the tax credit the first year you do your taxes so you don't owe it years later when the "lease" is up.

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  #4  
Old 12-28-2013, 12:53 AM
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That is very similar to the UK Personal Contract Purchase. With PCP there is an option to purchase at the end of the contract or you can hand the car back.


In the UK, private buyers either use traditional finance or PCP. Becuase of UK tax laws most businesses use a lease.
Usually UK leases are only offered to businesses.

However with the UK i3, Private buyers are offed the choice of personal lease, PCP or traditional finance.
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  #5  
Old 01-15-2014, 06:04 PM
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Inside EV article talks about prices, purchase options and residual values for the i3. Check it out: http://insideevs.com/bmw-i3-finance-and-lease-details/

If link is killed. Read below:

After a new plug-in vehicle offering is initially priced, the next questions generally are “How much will it cost to finance?” “How much is the lease?” “What are the residuals?”


And quite often these numbers are not known until the very last second, like when that vehicle actually goes on sale to the public.

With BMW now opening up US order books this month to its early adopters…or Electronauts if you will (Active E drivers) – that day has come.

In a document obtained by InsideEVs from BMW Financial Services to its US dealers (turns out there’s a good reason to have dealer contacts), it reads:

“…BMW of North America has offered our Electronauts (the existing Active E lessees) an exclusive opportunity to order the first BMW i3 vehicles produced for the U.S. market. Earlier this week, this group of customers was informed via email that they will need to contact their authorized BMW i Sales Center and order their BMW i3 by January 17, 2014 to take advantage of this offer.”

“…As a result, over the next week we expect that many Electronauts will ask questions regarding the available finance offers. We have prepared the attached information as a preliminary program guide so that you can help the Electronauts in making their purchasing and financing decisions.”

The first deliveries of “Electronaut” i3s are expected to arrive in late February by those who have already signed up (although that still seems unlikely to us – we estimate late March/April), with the general public’s first plug-in deliveries of BMW now not expected until May.


BMW i3 Production And Deliveries Already Underway In Europe
Now onto the numbers – most of which are fairly standard, however it should be noted that BMW is not passing along the $7,500 federal credit entirely inside their lease offer, instead only $4,875 is being applied – a questionable move we have seen employed once or twice before in the plug-in industry in America.

According to the document:

The slate of available financing products has been adjusted to align with the needs of electric vehicle customers, and the requirements of government incentives.

Retail Finance:

The Retail Finance product remains available in all states, including Puerto Rico
With the Retail Finance product, the customer may be eligible to claim a Federal EV Income Tax Credit
Lease and PrePay Lease:

Lease products remain available in all states, with the exception of Puerto Rico.
A $4,875 BMW i3 Lease Credit is available on all lease contracts. (Please note that lease customers are not eligible to claim a Federal EV Income Tax Credit.)
OwnersChoice:

OwnersChoice (for BMW i vehicles only) will be introduced in all states except: New Hampshire, Nevada, North Carolina, Pennsylvania and Puerto Rico.
The OwnersChoice product provides advantages similar to a lease (i.e. lower monthly payments, the option to return the vehicle at the end of the term) PLUS ownership of the vehicle.
The ownership of the vehicle provided by OwnersChoice provides customers the potential to claim a Federal EV Income Tax Credit.
OwnersChoice is a balloon finance contract that provides the option for the customer to sell the vehicle back to BMW Financial Services at the end of the term at a pre-determined price. Alternatively, customers can make the final balloon payment in full at the end of the contract term to complete the purchase and keep the vehicle.


BMW is offering financing to well qualified individuals for ‘up to’ 60 months from 2.99%, 61-66 months from 3.49%, 67-72 months from 4.99%, 73-84 months from 5.99%.

As for residual values on leases, they seem to be a touch lower than industry norms, but not too far off. Both the fully electric version and the REx (i3 with optional range extender) are given the same residual values. (based on 15,000 miles/year)

24 month residual – 49%
30 month residual – 44%
36 month residual – 39%
42 month residual – 34%
48 month residual – 28%
54 month residual – 25%
60 month residual – 21%
Note: add 2% for 12,000 mile/year leases, 3% for 10,000 mile/year leases. Extra mileage is charged at 20 cents per mile.


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Last edited by DrT; 01-15-2014 at 06:06 PM.
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  #6  
Old 01-19-2014, 07:51 AM
miata13 miata13 is offline
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Wow!..those i3 residuals on leases are brutal..that's quite the disincentive to lease the i3 IMO.
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  #7  
Old 01-19-2014, 10:07 PM
zibawala zibawala is offline
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I was ready to get one on maturing my civic hybrid lease but these payments and numbers are forcing me to look else where;(
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  #8  
Old 01-19-2014, 10:10 PM
zibawala zibawala is offline
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Any idea, what will be monthly on 24 mo , 10k miles lease?
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  #9  
Old 01-21-2014, 06:24 PM
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Actual i3 lease. Here's the link: http://insideevs.com/heres-a-look-at...930-per-month/

Quote:
Originally Posted by zibawala View Post
Any idea, what will be monthly on 24 mo , 10k miles lease?
Someone comment on the page (click link above and scroll down to comments) that "an i3, fully loaded here in California, using 10,000mi/year x 36, comes to $1,025/mo, without any dealer add ons."


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Last edited by DrT; 01-21-2014 at 07:15 PM.
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  #10  
Old 01-21-2014, 07:23 PM
zibawala zibawala is offline
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holly ****
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  #11  
Old 01-22-2014, 03:29 AM
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Quote:
Originally Posted by zibawala View Post
Any idea, what will be monthly on 24 mo , 10k miles lease?
52% --- it is the fine print on the post listing the residuals.
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  #12  
Old 01-22-2014, 08:37 PM
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Quote:
Originally Posted by zibawala View Post
holly ****
You took the words from my mouth.


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