[SwamiV]

Been awhile since I leased a BMW.

With the current residual/MF at 54% and .00082, does any of the 7500 rebate qualify as a cap cost reduction?

If so, is my assumption for ((MSRP - discount) - cap cost reduction) the right way to look at this?

TIA!

[pookgai]

That 7500 is a federal tax credit that applies only for people that buys the car not lease. When you lease, the 7500 goes to BMW FS.

[SwamiV]

Right, so maybe my phrasing is not very clear.

BMWFS claims the tax rebate (or some prorated portion of it, IDK). Does any of this show up towards capital cost reduction?

As in - if I negotiate 10% off a custom order, should I also expect to see this as a cap cost reduction being applied on top of the 10%?

[TurtleBoy]

Originally Posted by SwamiV

Right, so maybe my phrasing is not very clear.

BMWFS claims the tax rebate (or some prorated portion of it, IDK). Does any of this show up towards capital cost reduction?

As in - if I negotiate 10% off a custom order, should I also expect to see this as a cap cost reduction being applied on top of the 10%?

No it does not show as a cap cost reduction. They are giving some back by inflating the residual to be the same as the gas models. One can argue the hybrids do not depreciate faster than gas models but that is the theory they seem to follow.

[SwamiV]

Thanks for the clarifications!