[whichway]

I'm wondering if there is a way to get BMW to convert their $7500 lease credit to a purchase credit without leasing the vehicle?

With the Federal EV tax credit not applying to the ix suvs, I assume the credit is just to offer parity vs the competition, some of which still are eligible for an EV tax credit.

Or is BMW still really getting a commercial lease tax break for these cars (and so the lease is required for them to still get a Federal tax break)?

[LVBMW]

Originally Posted by whichway

I'm wondering if there is a way to get BMW to convert their $7500 lease credit to a purchase credit without leasing the vehicle?

With the Federal EV tax credit not applying to the ix suvs, I assume the credit is just to offer parity vs the competition, some of which still are eligible for an EV tax credit.

Or is BMW still really getting a commercial lease tax break for these cars (and so the lease is required for them to still get a Federal tax break)?

My understanding is the latter. Plus, with technology evolving so rapidly in the EV world you're really better off leasing for now (in my opinion, NomoTesla will of course disagree). Some have talked of doing the lease and waiting a while and then buying out the lease. I don't know how that works exactly.

[exxxviii]

Originally Posted by whichway

I'm wondering if there is a way to get BMW to convert their $7500 lease credit to a purchase credit without leasing the vehicle?

With the Federal EV tax credit not applying to the ix suvs, I assume the credit is just to offer parity vs the competition, some of which still are eligible for an EV tax credit.

Or is BMW still really getting a commercial lease tax break for these cars (and so the lease is required for them to still get a Federal tax break)?

Yes to your last question - The car only qualifies for the $7,500 credit because of the lease.

But it is super easy to effectively buy the car and get the credit...

1. Lease the car and get the $7,500 reduction off the capitalization cost.
2. Buy out the lease.

You won't lose anything doing the lease and immediate purchase this way, and you will own the car outright.

[whichway]

Originally Posted by LVBMW

with technology evolving so rapidly in the EV world you're really better off leasing for now (in my opinion, NomoTesla will of course disagree).

I'm interested in owning the vehicle outright as I'd rather keep it until it dies so as not have to go thru the front end of the car depreciation curve every 3 years. Don't care about not having the latest features while I wear out the car. Guess that makes me an outlier.

[whichway]

Originally Posted by exxxviii

Yes to your last question - The car only qualifies for the $7,500 credit because of the lease.

But it is super easy to effectively buy the car and get the credit...

1. Lease the car and get the $7,500 reduction off the capitalization cost.
2. Buy out the lease.

You won't lose anything doing the lease and immediate purchase this way, and you will own the car outright.

Thanks, was afraid of that.
Would have to pay the acquisition fee, and I assume some disposition fee, and possibly other fees to terminate the lease? Hope I wouldn't have to go through lease inspections too.

[exxxviii]

Originally Posted by whichway

Thanks, was afraid of that.
Would have to pay the acquisition fee, and I assume some disposition fee, and possibly other fees to terminate the lease? Hope I wouldn't have to go through lease inspections too.

Its been a while since I looked at mine, but the front-end fees are minimal. And there would be no inspection or disposition if you are buying the car. There is very little loss in leasing with the intent to buy it out.

[paulbazoV2]

You do pay a $1000 bank fee at the start of the lease, but that still leaves you a $6500 advantage over buying.
To buy out the lease you just send BMW the amount of the lease buyout and the send you the title, no fees

[javapro]

Originally Posted by paulbazoV2

You do pay a $1000 bank fee at the start of the lease, but that still leaves you a $6500 advantage over buying.
To buy out the lease you just send BMW the amount of the lease buyout and the send you the title, no fees

You could also try to negotiate the buyout amount.

[ubercruise]

I've found it's pretty difficult to negotiate lease buyouts up front as the residual is usually set in stone (though if you can negotiate the other factors, it might help reduce the buyout amount a little). Gets a bit easier sometimes toward lease end but that wouldn't help OP. Of course YMMV and maybe others have been successful.

[whichway]

Thanks for the information.
Sorry for the newbie questions, but I'm confused how I won't get double taxed and also owe the lease interest for the lease duration? For example, the lease marketing terms say "Tax... due at signing" but I've also read that tax is due at buyout (I'm in CA).
Either of these issues would wipe out the $7500 benefit if real.

If I could just find the contract boilerplate...

[LuisBoston]

Originally Posted by whichway

Thanks for the information.
Sorry for the newbie questions, but I'm confused how I won't get double taxed and also owe the lease interest for the lease duration? For example, the lease marketing terms say "Tax... due at signing" but I've also read that tax is due at buyout (I'm in CA).
Either of these issues would wipe out the $7500 benefit if real.

If I could just find the contract boilerplate...

In my state (MA) I pay tax only on the total rent charge (in my case ~$775/mo plus 6.25%, so $824/mo).

If I buy at lease end, my residual is $58k. So I’d pay $58k plus sales tax of 6.25% of $58k.

No double taxation. But I am paying tax on the interest included in the lease payment of $775.

[darylp310]

Originally Posted by whichway

Thanks for the information.
Sorry for the newbie questions, but I'm confused how I won't get double taxed and also owe the lease interest for the lease duration? For example, the lease marketing terms say "Tax... due at signing" but I've also read that tax is due at buyout (I'm in CA).
Either of these issues would wipe out the $7500 benefit if real.

If I could just find the contract boilerplate...

Lots of folks on the i4 and iX forums have done what you are considering over the past two years.

In CA there's no up front tax on leases. So you pay tax monthly along with your deprecation. So if you buy out your car in month 3, you would only pay tax on those three month (e.g., a $900/month payment with a 10% tax in Los Angeles, so you'd pay $270 of taxes over those three months.)

Also the standard BMW lease contract says you'll owe "interest due through the term of the lease." What this means is the moment you buy out the car, the interest accrual ceases immediately. There's no ambiguity around this. There no pre-payment penalty when you buyout a lease.

Finally, one important thing for you to consider is that the Money Factor offered by BMW on the iX is extremely low. Last time I checked it was the equivalent APR of ~2%. So financially, even though you want to own the car long term, you still might consider NOT paying off your lease for a couple of years. You can earn more interest in a HYSA in the meantime, or put your cash to work somewhere else.

Overall, it's a no-brainer to lease, even if you want to own the car in the long run. I literally can't think of any downsides. (The only exception might be in states like Texas where you are taxed up front on leases.)

[whichway]

Originally Posted by darylp310

Lots of folks on the i4 and iX forums have done what you are considering over the past two years.

In CA there's no up front tax on leases. So you pay tax monthly along with your deprecation. So if you buy out your car in month 3, you would only pay tax on those three month (e.g., a $900/month payment with a 10% tax in Los Angeles, so you'd pay $270 of taxes over those three months.)

Also the standard BMW lease contract says you'll owe "interest due through the term of the lease." What this means is the moment you buy out the car, the interest accrual ceases immediately. There's no ambiguity around this. There no pre-payment penalty when you buyout a lease.

Finally, one important thing for you to consider is that the Money Factor offered by BMW on the iX is extremely low. Last time I checked it was the equivalent APR of ~2%. So financially, even though you want to own the car long term, you still might consider NOT paying off your lease for a couple of years. You can earn more interest in a HYSA in the meantime, or put your cash to work somewhere else.

Overall, it's a no-brainer to lease, even if you want to own the car in the long run. I literally can't think of any downsides. (The only exception might be in states like Texas where you are taxed up front on leases.)

Thank you, that helps alot. But I thought the current "good" MF is .00150 as of May? So 3.6% APR (cheap compared to most debt besides mortgages but high enough to not be ignored).

[darylp310]

Originally Posted by whichway

Thank you, that helps alot. But I thought the current "good" MF is .00150 as of May? So 3.6% APR (cheap compared to most debt besides mortgages but high enough to not be ignored).

You're right! I just checked the Edumund's iX forum and they are saying that the MF/APR for the 2026's is 3.6%, but the 2025's are still around 1-2%!

[JK479]

Originally Posted by whichway

I'm wondering if there is a way to get BMW to convert their $7500 lease credit to a purchase credit without leasing the vehicle?

With the Federal EV tax credit not applying to the ix suvs, I assume the credit is just to offer parity vs the competition, some of which still are eligible for an EV tax credit.

Or is BMW still really getting a commercial lease tax break for these cars (and so the lease is required for them to still get a Federal tax break)?

Originally Posted by LuisBoston

In my state (MA) I pay tax only on the total rent charge (in my case ~$775/mo plus 6.25%, so $824/mo).

If I buy at lease end, my residual is $58k. So I’d pay $58k plus sales tax of 6.25% of $58k.

No double taxation. But I am paying tax on the interest included in the lease payment of $775.

Did you buy from Herb Chambers? I’m looking for a left over 25 or a 26 ix. I just heard all incentives leave for a long time
On all EVs…

Sort of fell in love with this loaner I had. I think I really want this now

[thebishman]

Originally Posted by JK479

Did you buy from Herb Chambers? I’m looking for a left over 25 or a 26 ix. I just heard all incentives leave for a long time
On all EVs…

Sort of fell in love with this loaner I had. I think I really want this now

You should be able to make a really good deal on a loaner vehicle; just make sure it’s CPO’d.

[JK479]

Originally Posted by thebishman

You should be able to make a really good deal on a loaner vehicle; just make sure it’s CPO’d.

My only valid complaint about it is there is no driver assistance or driver professional. Sad how normal cruise control now feels less than adequate😩

[abepaul23]

I was able to get the $7500 credit applied to a purchase but financed through BMW through a local dealer in Dallas for '26 iX45.

[darylp310]

Originally Posted by abepaul23

I was able to get the $7500 credit applied to a purchase but financed through BMW through a local dealer in Dallas for '26 iX45.

Was there any other reduction off MSRP? I wonder if you could have gotten both?

I know Texas does things quite differently than other states.

[thebishman]

Originally Posted by JK479

My only valid complaint about it is there is no driver assistance or driver professional. Sad how normal cruise control now feels less than adequate😩

For me, that car would be off the table for sure. I bet you could find one with the options you want with a bit of research. Must be hundreds of iX’s in use at BMW dealerships as loaners; including M60’s which generally come loaded.

[NomoTesla]

Originally Posted by LVBMW

My understanding is the latter. Plus, with technology evolving so rapidly in the EV world you're really better off leasing for now (in my opinion, NomoTesla will of course disagree). Some have talked of doing the lease and waiting a while and then buying out the lease. I don't know how that works exactly.

Leasing is an individual decision. I don't lease because, in my world, the desire to have the latest and greatest tech does not outweigh the desire not to have a "forever car payment". That's what leasing is. You're just renting the car. Forever.

In my case, buying made the most sense because I received the federal tax credit and also deducted 100% of the purchase price of the vehicle using Section 179 w/ Bonus Depreciation for my business. The iX qualifies as its GVWR is in excess of 6,000 lbs per IRS guidelines.

Since then, the ability to use bonus depreciation has been reduced to 80% or less of the vehicle's price. I also received reduced registration fees that save me close to $6k over 4 years. That would not have been available for any purchases consummated after December 31, 2022.

We all make the best deals we can at the time. Some have more disposable income than others, increasing available choices and making the decision easier. 2022 was an interesting year in which to buy and sell a car.

[JK479]

Originally Posted by thebishman

For me, that car would be off the table for sure. I bet you could find one with the options you want with a bit of research. Must be hundreds of iX’s in use at BMW dealerships as loaners; including M60’s which generally come loaded.

It was a rather bummer this one wasn’t equipped.

Is it true you can lease loaner? It’s titled with a license plate but I’m told bmw qualifies it for lease and it can be a significantly lower sale price.