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X5 E70 (2007 - 2013)
E70 BMW X5 produced between 2007 and 2013. Discuss the E70 X5 with other BMW owners here.

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  #1  
Old 10-22-2009, 08:31 AM
Penguin Penguin is offline
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Diesel Tax Credit Cut in Half for X5?

Even though it showed up on the BMWUSA website under "build your own," I figured it was just a mistake.

But here's the response I got from an e-mail inquiry:

------------------------------------------------------------------------------------------------------------------
Dear Mr. Penguin:

Thank you for contacting BMW of North America, LLC regarding the Diesel Tax Credit. We appreciate your interest and enthusiasm for our vehicles.

The Diesel Tax Credit is strictly a government incentive. BMW NA has no control over what the government offers as an incentive. Unfortunately, we do not have information pertaining to why the incentive has changed.

However, BMW is still offering the $4,500 Eco Credit. Eco Credit is a $4,500 credit against the MSRP of the final purchase of the 335d and X5 xDrive35d Advanced Diesel through 11/02/2009. I suggest contacting your local BMW center to determine if they are a participating center. Should you need it, you will find a complete listing of authorized centers, categorized by name, state, or zip code, on our Website at www.bmwusa.com.

If you have any further comments or questions, please respond to this e-mail or contact the Customer Relations and Services Department at 1-800-831-1117, Monday through Friday from 9:00 A.M. to 9:00 P.M., Eastern Standard Time. Again, thank you for contacting BMW.

Sincerely,

Customer Service Rep
Customer Relations and Services
Representative
------------------------------------------------------------------------------------------------------------------

"we do not have information pertaining to why the incentive has changed" certainly sounds like it has actually changed.


Conclusion?

(A) The X5 Diesel Tax Credit has been cut in half for the 2010 models, or,

(B) It's a web mistake, the customer Rep didn't know the answer, and, rather than research it, she just was lazy and blew me off with a non-answer.


I love how BMW NA issues press releases shouting about the Diesel Tax Credit, and then, when asked a question about it, says "The Diesel Tax Credit is strictly a government incentive. BMW NA has no control over what the government offers as an incentive. Unfortunately, we do not have information pertaining to why the incentive has changed."

Yeah, does anyone really believe that the Government cut the X5 diesel tax incentive in half and BMW "do not have information pertaining to why the incentive has changed."

I can accept getting blown off with a non-answer, but I really dislike it when companies lie to me. I am 100% positive that BMW NA does " have information pertaining to why the incentive has changed."


If, in fact it has changed...
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  #2  
Old 10-22-2009, 08:35 AM
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David1 David1 is offline
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Eventually, the tax credit will go to $0. The more of these that sell, the lower the tax credit will be until it hits zero.
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  #3  
Old 10-22-2009, 08:45 AM
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jaaX3 jaaX3 is offline
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Quote:
Originally Posted by David1 View Post
Eventually, the tax credit will go to $0. The more of these that sell, the lower the tax credit will be until it hits zero.
That's a given, and nobody is questioning that. The question is why has it gone down to $900 already. Either there's information that's not being shared, or it's a web mistake.
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Old 10-22-2009, 08:54 AM
Penguin Penguin is offline
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Quote:
Originally Posted by David1 View Post
Eventually, the tax credit will go to $0. The more of these that sell, the lower the tax credit will be until it hits zero.

Yes, but I believe the threshold is 60,000 sales units.


The X5 is far, far, far from reaching that, as I believe they sod less than 3,000 through September.


http://www.irs.gov/newsroom/article/...157632,00.html
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  #5  
Old 10-23-2009, 06:18 AM
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David1 David1 is offline
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Originally Posted by Penguin View Post
Yes, but I believe the threshold is 60,000 sales units.


The X5 is far, far, far from reaching that, as I believe they sod less than 3,000 through September.


http://www.irs.gov/newsroom/article/...157632,00.html
That's for Hybrids, Diesel is different. The diesel vehical counts are substantially less.
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  #6  
Old 10-23-2009, 07:04 AM
Penguin Penguin is offline
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Quote:
Originally Posted by David1 View Post
That's for Hybrids, Diesel is different. The diesel vehical counts are substantially less.
This link says/strongly implies they are the same:

http://www.fueleconomy.gov/feg/taxLeanBurn.shtml

Click on "Phase-out and termination near the bottom of the page)

But even if they were lower, I would be very surprised if it was less than 5,000 vehicles... and I am pretty sure BMW has not sold 5,000 Diesel X5s in the U.S. yet.


Whatever the explanation is, I doubt it is a normal phase-out.

But if you've got some info or a link with some data, I'd be grateful if you'd pass it along.

Last edited by Penguin; 10-23-2009 at 07:15 AM.
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  #7  
Old 10-23-2009, 07:07 AM
d geek d geek is offline
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have you tried inquiring the govt directly?
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  #8  
Old 10-23-2009, 07:18 AM
Penguin Penguin is offline
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Originally Posted by d geek View Post
have you tried inquiring the govt directly?
Yes.

Have I got a response?


No.
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  #9  
Old 10-24-2009, 04:46 AM
Marwan Marwan is offline
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Does the tax credit apply to leased cars also?
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  #10  
Old 10-24-2009, 06:38 AM
donkeyjote donkeyjote is offline
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No. The credit applies only to the purchaser, in this case, the leasing company (e.g. BMWFS).
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  #11  
Old 10-24-2009, 06:55 AM
02fireman 02fireman is offline
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[QUOTE=But even if they were lower, I would be very surprised if it was less than 5,000 vehicles... and I am pretty sure BMW has not sold 5,000 Diesel X5s in the U.S. yet.


.[/QUOTE]

I read in a magazine article that is was around 1400 X5d's and around 500 335d's for 2009 models in the US. They said that would make it around 1 335d per dealer and 3 x5d's per dealer average.
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