Using incentives to reduce cap cost

mntbiker · 07-05-2013, 07:59 PM

Quick question: Can the loyalty and ultimate drive incentives be used to reduce the cap cost (financed amount) of the car? Or must it be used as a down payment/up front costs. I was certain that you could use them to reduce the financed amount, but my CA is suggesting otherwise... BTW this is a lease.

Thanks!

Pauleebe · 07-05-2013, 08:29 PM

Quote:

Originally Posted by mntbiker

Quick question: Can the loyalty and ultimate drive incentives be used to reduce the cap cost (financed amount) of the car? Or must it be used as a down payment/up front costs. I was certain that you could use them to reduce the financed amount, but my CA is suggesting otherwise... BTW this is a lease.

Thanks!

It depends on the incentive. Loyalty and ultimate drive should be used to reduce cap cost I thought?

elusive · 07-05-2013, 09:09 PM

It should be put towards the selling price. For example,
MSRP 50k
Selling price 48k
Net price after incentives 47k

justinnum1 · 07-05-2013, 09:13 PM

yes

mntbiker · 07-05-2013, 09:37 PM

Thanks for the answers.. I found this in the fine print just now:

Lease/Finance Loyalty Cash of $500 is available on the 1 Series, 3 Series, 4 Series, M3, X1 and X3, $1,000 on the Z4, 5 Series, M5, X5, X5 M, X6 and X6 M and $1,500 on the 6, M6 and 7 Series for all new model year 2013 and 2014 BMW models. The offer is valid through December 31, 2013 for vehicles purchased, ordered, or leased/financed through BMW Financial Services NA, LLC. Loyalty cash offer is available through authorized BMW Centers to qualified current BMW car/SAV owners and former BMW car/SAV owners of any Model Year vehicle who have disposed of their vehicle within the past 12 months. Offer cannot be applied retroactively. Lease/Finance loyalty cash must be applied to the lease/finance purchase and the BMW vehicle must be financed/leased through BMW Financial Services NA, LLC. The offer will be paid directly to the BMW center to offset the customer's closing costs. Lease/Finance Loyalty Cash cannot be applied toward tax, title or destination charges. Consult with your BMW Client Advisor for full program details, and to learn which vehicles and leasing or finance programs qualify. Lease/finance offers are subject to credit approval. Offer subject to change.

source: http://www.bmwusa.com/Standard/Conte...ltyoffers.aspx

07-05-2013, 07:59 PM	#1
mntbiker Captain 123 Rep 616 Posts Drives: F15 X5 Join Date: Aug 2010 Location: Raleigh, NC iTrader: (0)	Using incentives to reduce cap cost Quick question: Can the loyalty and ultimate drive incentives be used to reduce the cap cost (financed amount) of the car? Or must it be used as a down payment/up front costs. I was certain that you could use them to reduce the financed amount, but my CA is suggesting otherwise... BTW this is a lease. Thanks! Last edited by mntbiker; 07-05-2013 at 08:05 PM..
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07-05-2013, 09:09 PM	#3
elusive Second Lieutenant 192 Rep 279 Posts Drives: 2015 F30 Join Date: May 2013 Location: Los Angeles iTrader: (0)	It should be put towards the selling price. For example, MSRP 50k Selling price 48k Net price after incentives 47k
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07-05-2013, 09:13 PM	#4
justinnum1 Major General 651 Rep 5,803 Posts Drives: 2018 330i Msport 6mt Join Date: Nov 2006 Location: South Florida iTrader: (0)	yes __________________ F30 330i Alpine white/Coral red Msport 6MT
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07-05-2013, 09:37 PM	#5
mntbiker Captain 123 Rep 616 Posts Drives: F15 X5 Join Date: Aug 2010 Location: Raleigh, NC iTrader: (0)	Thanks for the answers.. I found this in the fine print just now: Lease/Finance Loyalty Cash of $500 is available on the 1 Series, 3 Series, 4 Series, M3, X1 and X3, $1,000 on the Z4, 5 Series, M5, X5, X5 M, X6 and X6 M and $1,500 on the 6, M6 and 7 Series for all new model year 2013 and 2014 BMW models. The offer is valid through December 31, 2013 for vehicles purchased, ordered, or leased/financed through BMW Financial Services NA, LLC. Loyalty cash offer is available through authorized BMW Centers to qualified current BMW car/SAV owners and former BMW car/SAV owners of any Model Year vehicle who have disposed of their vehicle within the past 12 months. Offer cannot be applied retroactively. Lease/Finance loyalty cash must be applied to the lease/finance purchase and the BMW vehicle must be financed/leased through BMW Financial Services NA, LLC. The offer will be paid directly to the BMW center to offset the customer's closing costs. Lease/Finance Loyalty Cash cannot be applied toward tax, title or destination charges. Consult with your BMW Client Advisor for full program details, and to learn which vehicles and leasing or finance programs qualify. Lease/finance offers are subject to credit approval. Offer subject to change. source: http://www.bmwusa.com/Standard/Conte...ltyoffers.aspx
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