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Just picked up my 35d
And I love it!
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If it really saved you $50Gs in taxes, then you have a new ride...
doesn't sound to me that your sales guy was that "excellent, all around", imo. The punque "manager" must think he is still living in 2005 and everyone is chasing a variety of the next hot bubbles... Enjoy your ride but I wouldn't take a free water on a hot August day from that joint, "next time". GL,mD |
You got screwed, but I think you already know that. I would have searched for a car elsewhere. I paid 1000.00 over invoice, but that was a year ago. I didn't receive the 4500.00 eco credit. That money came from BMW, not the dealership. That was BS they had to sell a certain number of vehicles before they got that credit from BMW. My buying experience wasn't much better and I won't go back there for service, or to purchase another BMW. They don't even have free bottled water at either of the BMW dealerships I've been to. My Lexus dealer has all kinds of snacks, bagels, drinks.
I was lied to as well at my selling dealer. My vehicle came in with 3 out of 4 of the wheels damaged during transport. The dealer said BMW would take care of it and they didn't. I had to force the dealership to replace my wheels. BMW only wanted to repiar my wheels. I did learn a lesson, don't trust the dealer, don't trust BMW to do the right thing. This very well might be my last BMW. This is my 4th BMW... Craig |
You had no time but were there no other dealers around at all? SF area has to have quite a few.
BTW, so much for buying end of month / year... |
You don't want to purchase here at the end of the year. You will owe property taxes on the vehicle for the entire year. That's why I took delivery on January 2nd. I waited a couple weeks to take delivery. I know you wanted the tax credits and sales tax credits...
Enjoy your new ride! Craig |
You purchased a great vehicle for $4500 under MSRP essentially. No discount from the dealer is spilt milk move on and enjoy! Get the 2009 full write off plus the Diesel credit (1800 v. 900 v. ?).
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Sorry to hear of your horrible experience at BMW of Concord, never have went there and after your experience never will. The GSM did have a point though that in the SF Bay the diesel's will go in a flash. For example BMW of Mt. View recived 3 at the end of last week and now there is only 1. Also after looking through all of the SF Bay dealers I think BMW of SF had one and BMW of Mt. View had one, there is more inventory of X5M's and X6 Active Hybrids than 35d's!
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Sorry to hear of this.
Of course you should not have shared YOUR personal details that gave them all the leverage...even if it WAS to be a business purchase, just do that at the closing. I'd have been calling every dealer in a 200 mile radius with some story of 'surprise my wife for christmas' and offering some hefty premium over invoice (but not full MSRP) If I could have saved $100 over their price, I'd have driven 100 miles to do it. They could have thrown you a bone and didn't. F em. I paid 1k profit at Pleasanton... I was shocked, frankly. Chico would be a good place to try A |
^^^ +1, I wouldnt of given them the satisfaction.... and would've bought elsewhere. I would never deal with anyone that deals like that...
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at least the difference between invoice and MSRP is minimal.
I wouldn't repatronize the dealer if I had the choice though. You don't reward that kind of BS with repeat service or referrals. |
Concord's done that before--to not just you.
I ALWAYS buy from BMW of Humboldt Bay...the people there are just "good". They always give you the straight forward deal, and free shipping to all parts northern and southern california. Never have to go in, never have to "haggle"...just get it done. |
OP,
Sorry to hear about your bad deal. It's not that bad of a deal because you still ended up paying $4500 off MSRP, right? Note for the next time though, you can ALWAYS walk away! First of all, never disclose any more info than you need when negotiating the price with the SA. After you have a signed purchase agreement with your ideal price, then you can talk all you want. I just purchased a 3.0 at the BMW dealer in Fremont and got roughly $400 above invoice PLUS the $2500 Holiday Credit. I've heard that Concord BMW is one of the largest BMW dealerships in the Bay Area and that they had good customer service. Either you got a bad SA or you had a "Screw Me" sign on your forehead when you walked onto the lot. About having to buy the car this year, correct me if I'm wrong, but you only need to have a purchase agreement/invoice dated in 2009. So, you could have still shopped around. |
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I hate dealerships as much as you do. They will lie straight to your face and make all sorts of claims to strengthen their bargaining position. I was actually told a similar story by one dealership in my area. .."the 4500 eco credit was split 50/50 between the dealership and the factory, therefore we can't offer you more discount.." What I did? Bought from a different dealership for 1k over invoice.
The only thing we can do as consumers is patronize the dealerships that are (more) honest and not spend our money at the ones that are crooked. Unfortunately, since you ended up paying full price for the vehicle, the dealership and its employees did the right thing and negotiated perfectly with you to get every penny they could from you. The situation is directly analogous to real estate so I'm not sure why you showed your hand to them and expected them to give you something anyways. On the other hand, I do agree that they should have thrown you a bone with a cheap phone adapter to make you happy. I hope they at least threw in the floor mats! Anyways, enjoy the X5 and try to forget about the experience. |
Yeah,
You all have some great words to share. The important thing is I got the car. Is the $2k off MSRP or thereabouts going to kill me? Of course not. But, I suppose it was the point of the whole thing. The gesture. My mistake, was telling them that I HAD TO TAKE delivery by the 31st due to tax reasons. Believe it or not, I did call every dealer in Northern & Southern California. I must have called 20 to 30 dealers. I even called dealers in New York and Arizona. No dice. Obviously that speaks highly of the demand for the vehicle, and had I had more time I would have walked for sure. But, oh well. I'm glad to know it's not just me who thought this was a crappy deal. I'll never go back, and lesson learned. It's an awesome SAV and I'll post photos soon. Thanks for the moral support all! Funny how pissed one can become over what amounts to 1.5% to 2% of the vehicle purchase price, in the scheme of things, but again it's the "gesture" that I was looking for. Alas, it's a recession, and I just bought a luxury SUV, maybe I should stay silent and enjoy life! 2,000 mile road trip starts Wednesday, through Southern California, Arizona, Colorado, and Northern California. Will report frequently! Cheers, E P.S. for full disclosure, I required a 35d with Nav, so that limited the choices somewhat. The one I ended up with has adaptive drive which was also on my list of preferred, but not mandatory requirements, so I made out just fine, crappy dealer and all. |
As some others have echoed, it's better to have the right car at a slightly inflated price than the wrong one at a great price.
In the future I would get on this Board during the process of buying. There are are lot of savvy people here in SAV world. |
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What I've learned from car buying is that you ALWAYS walk away. 90% of the time, they'll call you back with a better offer. But as of late, the last three cars I bought were both from the dealer's internet sales. I was amazed at the ease of the process- how much less games/tactics/back and forth there is vs physically being at the dealership, and the pricing has almost always (3 out of 4 times) been less expensive from the Internet sales. When I got my X5, it was well under invoice (due to trunk money). But while I was at the dealership a few months ago and asked about a custom built 35d. The sales wouldn't budge from MSRP, but would have if I got one that was on the lot. |
Sorry to hear about your bad deal with Concord, I've found that most BMW dealers in the Bay Area are arrogant, and have an undeserved sense of self-importance. I hate walking into a dealership and being made felt like I am wasting their time (Stevens Creek BMW), or being treated with condescending attitude (Peter Pan BMW). I bought mine from a dealer 200 miles away because he claimed to have a production slot for 2nd week of November, and the initial experience and the deal were good, however once they got my deposit that was the end of good customer service. Now I am doubting that he told me the truth about the production week, as my car went into production 2 weeks late. Maybe it was just do to normal production delays, or maybe he lied to get my business as he knew the only reason I was choosing him was the production slot. From what I've read on these forums and from personal dealer visits, BMW of Mt. View seems to take care of their customers the best. This is only a superficial observation as I haven't actually bought a car from them, but when my 330i comes due for replacement I will probably try them.
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mtech is so right.
Had that exact experience at a local Dealership last month. The Salesman must of called me 6 times trying to sweeten the deal each time. I finally told him he should have read the recipe better and had the sweet taste right the first time. Gave my business to a Dealer 100 miles away who came in at a fair price immediately. |
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The entire process was quick and easy. For the SA who got the sale, it couldn't have been easier. He'll get his commission for minimal work. I think it comes down to how you approach it. Some ppl are scared when it comes to the new car purchase process. And, it's written all over their faces. So, the SA's see it and take advantage of them. Note, I've done it this way for the past 4 cars that I've purchased in the last few years. For the OP (and others that I've seen), I don't understand how you can agree to a bad deal and then complain about it after the fact. The deal is done. You agreed to it. If it was that bad, then why didn't you just walk away? Your unwillingness to walk away and ignorance got you into this situation. You CANNOT blame the SA's. They all need to make a living too. If given the choice, of course they want to make more commission on a sale that's closer to MSRP. That's the nature of the game. They are certainly not going to automatically give you near invoice pricing. So OP, what's done is done. You got a sweet car. Be happy with it. In the end, you still got the Eco credit which makes it a decent deal. |
z2g, my negotiating experience wasn't bad, it was all done through email like you. However, at some point I had to go in and drive the car, I don't buy/order any car blindly. Unfortunately for me the last 2 BMWs I bought weren't readily available to test drive so I had to go to a few dealers to find the car. (X5ds were very hard to find on dealer lots at the end of October, and believe it or not finding a 330i with sport package and 6 speed manual was even more difficult to find 3.5 years ago) It is at this point that I had my bad experiences.
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I'm sorry to hear about you bad experience at Concord BMW. I got my 35d last week from them and had a great experience. I also bought a 330ci 4 years ago from them and was also good which was the main reason I came back. I did the dealer Internet salesand both purchases and everything was done via email or phone call. I only went to the dealership 2x to test drive and order after the test drive and then a second time to pick up. The less face to face contact I have with the CA the better since I don't want to play games as well. If they don't want my business, I'll go elsewhere. Fortunately, its been good and even the Service department there had been good as well.
Anyway, we both have a nice 35d which we can enjoy . |
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I don't know if I'm just lucky or what. But, my last 4-5 car purchases have been very easy. And, I don't consider myself as a ruthless haggling machine.:rofl: Yet, I was able to get a good price (at or near invoice pricing) with little haggling. It is because I was willing to shop around nearby dealerships and I did my homework as far as knowing the invoice pricing. Seriously, anyone can do this. |
I don't understand this.
1) You procrastinated about buying a new vehicle 2) You wanted to get a deal done by 12/31 to save on taxes 3) You revealed your dilemma to the salesman 4) You made the deal, no one forced you to make it 5) The dealership is in business to make money. 6) It doesn't appear that you've ever bought a car from this dealership before, so there's no prior relationship established. 7) You could have walked away and bought another high end car to save money on your taxes. Where in this entire mess did it turn into the dealership screwed you? It seems like you screwed yourself. Sorry for the tough love, but a good look in the mirror is in order. To be honest, you owe the dealership an apology for bashing them on a BMW internet forum, all they did was maximize their profit. If I were the sales manager I'ld print out your rant, frame it and hang it over the salesman's desk with a big gold star saying "this is how you make money" (which is what they're in business to do). |
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Don't get me wrong. We all want a good deal, but in the end, the buyer decides, no one else.
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I don't know what it is - we bought our '09 35d new six months ago from a very large BMW dealership in the D.C. suburbs. It was nearly loaded (we're extremely happy with what's in this 35d), and, of course, it was our first car of this caliber, having always driven Honda, Ford, Chevy, Toyota, etc.
Our dealership experience was WORSE than any other (21 years buying vehicles) - terrible attitude and jiving like used car salesmen. Why did we buy from them? That's a good question, and some measure of an answer is, we were very busy and didn't want to shop around. Also, BMW and the dealership were both advertising attractive offers at the time - so price-wise, the time was good. Our price was good - the experience was filthy. Afterward, we needed a shower - my last Chevy dealer had more class and was genuinely happy I bought a car. What a shame. |
I really can't blame a dealership that can make a buck on a car in this terrible market. It's been a buyers market and for BMW dealerships, the X5 35d is one of the few hot items they have. Dealerships with lower allocations probably are tighter on the pricing.
I have nothing but good things to say about negotiating with my local dealership (Motorwerks BMW). They have always been fair with me and the service guys have been excellent also. |
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2. Yes, I did want to get the deal done by 12/31/09. 3. I revealed only that I wanted to the obtain the eco-credit, which I was told would expire on 12/31/09. 4. The rational side of my brain forced me to. I had the choice of sending $45,000.00 to the IRS on April 15, 2010 or purchasing the BMW. 5. As am I, but I am also in the business or continuing to make money by retaining my clients, with an awareness that making a small gesture to one individual client can bring me multiple other clients. 6. There was no established relationship, nor would I recommend to anyone here that one be created. 7. I am involved in ultra-high-end sales and green startup venture funding, in the Bay Area. The accelerated depreciation applies only to vehicles with GVWRs of 6,000 lbs. or above. Gas mileage to me is essential. No other vehicle save for the Toyota Highlander (which I found to be an unstable SUV) attained the mileage of the BMW. Fuel economy and reduced C02 output are very important to me. Thus, I chose to buy the BMW, not walk, and not "throw away" $45k to the Feds during tax season. I do not claim to have been screwed. I am claiming the words of the sales manager were unethical and deceitful and for that I owe no apology. Nor have I "bashed" the dealer in any way whatsoever, by reporting on a factually true event that occurred. In fact, there are material facts I've left out that would make them look even worse, yet I've chosen to let it be. I have purchased well in excess of 20-new vehicles during the last dozen years. This is my first BMW, and I was very surprised at the "overall" experience. To one with any sense of intelligence, reading between the lines of my thread should be quite easy, as the vast majority of those who read my post have done. I don't consider your post to be tough-love, rather I consider it to be what happens when one is bored and wishes to engage in a battle of wits on an Internet forum. These things happen, and judging by your whopping 9,000+ posts, I can see you're a "frequent" visitor to this site. So, instead of looking in the mirror, I'll look the other direction and consider your post to be nothing more than a cheap shot at a legitimate gripe. The fact is, I have no tolerance for unethical behavior, and reporting my experience as a warning to others to steer clear of this dealer is in the best interests of all those who participate on this popular forum. You need not agree with me, and I welcome your points, but your tone is combative and far from constructive. Of course I had a choice to walk, and I had a choice to buy another vehicle. I also had a good 10-days to research and test drive the options. Unfortunately or fortunately, depending on who's looking, the BMW suited all of my needs, as mentioned above. I myself am responsible for paying MSRP, no one else and had I not been lied to, which I was fully aware of as it was taking place, and had "unheard- of-unethical" behavior and language not have taken place during the sales process, I would have had no major qualms with paying MSRP for a popular vehicle 1 week prior to Christmas. I realize the 35d is in demand. My point, if you reread my thread, is that I'm very dissatisfied with the process, and quite astonished that the dealer was unwilling to embellish me in the slightest, in an attempt at making me a "satisfied customer." Sure I could have walked, but quite frankly, I can put aside my ego and swallow my pride, for the sake of having a new SUV in my driveway and $45k more in my bank account come April. So, thanks a lot for your comments! You're obviously far wiser and more logical than am I. Please forgive me oh ye of 9,000+ posts. I am not worthy, I am not worthy...! P.S. Pun intended throughout the post. Chill out buddy, it's an Internet forum. It's here for complaining and shooting the Sh_t, or did I miss the memo some 8,000 posts ago....? '-) |
Wow, that's a lot of noise. There's only 1 appropriate response, enjoy:
Mr. ABMW, what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this forum is now dumber for having listened to it. I award you no points, and may God have mercy on your soul. |
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OP,
Don't get offended by Thunder22's (or any other members) comments. It's all part of an online forum community. When you post a question or rant on any forum, you're going to get responses that agree with you and disagree with you. You're not always going to get sugar-coated answers that's going to "pat you on the back". I thought Thunder22's comments were just that.....tough love, honest, concise, and to the point. You may not like reading it, but you know what they always say, the truth hurts sometimes. About having to purchase the car this year or losing $45k to the government, I don't think that's the case. If the $45k that you're talking about is the sum you had to spend as a business expense, then you would have only lost money on taxes on that $45k.....roughly $13k. For some ppl (like myself), any extra "bonus" that I get at the end of the year due to higher-than-expected gross profits of my business, I often put some of it into my SEP IRA. Hence, it's NOT taxed until after I retire. Either way, as others have tried conveying to you, it was your fault in the end. Because, no one put a gun to your head. As far as Thunder22 having over 6000 posts, good for him. You know he's an avid BMW aficionado and Xoutpost regular instead of a newbie who's just trying to be a troll. |
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Though, of note, your understanding of my tax situation is incorrect. Please reread it. I tried to make it pretty clear, as there are many others on this board who have specifically asked about Obama's "new for 2009" bonus accelerated depreciation scale, that is part of the economic stimulus package that was passed earlier this year. If it were a matter of saving $13k, I would have purchased an M3, not a 6,000 GVWR SAV that is required to qualify for the bonus depreciation. In fact, I am saving just over $45k, actually, specifically by purchasing this SUV. But in my case it is used for 95% to 100% business (the IRS allows small personal trips within 1 or 2 miles to be driven in a 100% business use vehicle, but frequent trips over 10-miles for personal use are borderline) Anyway, I still am responsible for a very large chunk come April. Though, those are the breaks and one can only be so prudent. I live in the Bay Area, and while my household income (my wife's and mine) would be considered extraordinarily high elsewhere in the country, we're in a city of $3,000 to $4,000 rent for a small 2 bedroom in a "safe" area that allows dogs, and includes parking, if you're lucky. Thus, small bits adds up. Again, my qualm is not in paying MSRP and perhaps I should modify the title of my thread or make that more clear in my original post. My qualm is in the blatant lies that were being told, by the sales manager, in front of his own salesman who was not even agreeing with him. My issue is with the experience, as a whole. I'm being pretty clear about this. Naturally I expect a hard-sale when I walk into a car dealership. But, as someone who is extremely involved in the community, and in sales, the reason for my post is that I find unethical behavior to be deplorable and I have little tolerance for it. Again, I expect car dealers to be tough, naturally and "duh," but as stated earlier: having purchased well over 20+ cars over the last dozen years, not to mention a good 9 to 10 motorcycles, I've never been faced with a manager who had the gall to straight up lie about a factual document in front of him. We even pulled up his comments on BMW's website to confirm he was being untruthful and that we weren't going crazy, as his behavior was so bizarre. So, my thread is hardly trolling. It's a mere warning to others to steer clear of a specific Bay Area dealership, based upon factually occurring events. As a friendly side note: trolling aside, do yourself a favor and consult with your accountant about taking a 90% or 100% depreciation for your X5. If you bought it new this year, your eligible, and it sounds like you own your own business. Maybe you did not gross enough for it to be worth it or you have enough deductions that you need not take another, or you do not use your vehicle specifically for business, but if you do, it's worth a phone call. If he/she (your accountant) is not aware of it, call a different person- again just friendly and sincere advice. This thread is becoming more silly by the moment, so I'll try not to respond to further threads on this specific topic. But, again, in closing my issue is not with the salesman. He was excellent. My issue was specifically with the behavior of the sales manager and his unethical behavior. I paid MSRP, and it's my fault, but again I could care less. Heck, I would have paid $1k over, if I had to. It's a great truck. But, I have no regrets in posting this warning to steer clear of a dealership that is managed by someone who lacks ethics or at least displayed no sense of ethics in my dealings with him. Cheers and Happy Holidays! |
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:nanana::bustingup:p::beerchug: http://nahright.com/news/wp-content/..._arguments.jpg :whocares::noadd: |
OP,
I have an accountant. I am also a business owner who makes well over the amount that Obama considers the upper 5% of the population. I also live in the S.F. Bay Area. So, I'm in the same boat as you. Regarding my tax comment to you, that was why I mentioned/asked whether that $45k was the total taxable bonus you received or was it your actual tax savings. Because, if it is the former, then you would be taxed on that $45k and it doesn't mean that buying the car "saved" you $45k that would have gone to the IRS. By the way, are you incorporated? If so, did you purchase the car under the corporate name and insure the car under the corporation? And, I don't know why you're getting belligerent with me. I thought my post was rather cordial. |
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Your math on the tax savings has me scratching my head like the previous poster. You are talking about a section 179 deduction. Or in other terms, accelerated depreciation. If you are having a good year, accelerated depreciation can be a good thing. But where I don't follow you is that deductions are against income, so even if you could deduct 100% of the purchase price, you would end up around 20K in a 36% bracket. To get to 45K would mean you were in a 80% bracket. The 6000 GVWR merely gets you by a federal limit on business car expenses, it has nothing to do with the current 2009 accelerated depreciation rules. If there is some other creative way to handle the taxes, I would be interested to learn it. You would be best to site the rules online somewhere instead of just telling people to keep calling until they get the answer they want. We look at section 179 each year. For you tax fans, here is a good reference: Qualifying for the 2008 Section 179 Tax Deduction | Section179.org I'm fine with calling a spade a spade, but something smells fishy here (and note I only have around 200 posts) ;) |
Not belligerent at all, sorry if it came across that way. It was not my intent. Emotions are lost via Internet forums. I'm just having fun participating.
No, the total taxable income I received was FAR in excess of $45k. It was not a bonus, but an unexpected deal that closed, with little to no notice. Person A called me one day and purchased B's home the next for many millions of dollars. The $45k is my actual tax savings. To answer your other question: yes I am incorporated, so I draw a salary from my incorporation. It's very complex and a pain, but it's also the correct way to handle one's finances if you can stomach the paperwork and specific filings. I hate it, but it does save me money at the end of the day. The car need not be purchased under one's corporate name to qualify, nor must it be insured under the corporation or purchase in call cash. Financing the vehicle is fine. In the case of a luxury vehicle they may also require justification as to why you needed a luxury vehicle instead of a Jeep Cherokee. I sell and assist buyers in their purchase of homes in excess of $3m+ (almost exclusively), so it's easy to see how I can't exactly toss my clients into the back of a Ford Escape, when they drive up in a 911 Turbo. It just won't work. Again, check with your accountant. No need to purchase under the corporate name or have it insured as such, any more than you'd need to purchase a Herman Millar chair under your corporate name. It's filed as a 179 Section deduction, and it's been available for years. It's very standard. The only difference this year, compared to past years is the "bonus depreciation" which doubles what was previously allowed to be depreciated (deducted). The old limit was $25 or $28k I don't recall exactly. The new limit is $58k for SUVs with GVWR of 6,000 lbs. or higher and $250k for other equipment such as airplanes or farm equipment. For example the X3 won't qualify, as it's too light. It is part of the stimulus package that was put in place to spur American Car buyers to purchase SUVs from Ford and Dodge, etc, that were sitting on the lot. Unfortunately didn't work all that well. Bush did something similar, which caused a rash of small business owners to purchase Hummers H2s. I'm sure you've read about it in the past. I'm a real estate broker, but I'm in the top 99.99% of my field, so driving an X5 is very acceptable to the govt. If I were selling $120k homes, it "could be" a bit difficult to justify why I need an X5 Diesel. Hope that helps, and I again, I wasn't being belligerent hence my "friendly" advice comment, that you seek the same situation for yourself. It can work in your favor, assuming you're in a similar boat. If I can forward you to my accountant, contact me anytime. He works in Los Angeles, but takes clients all over the country and will talk to you for hours for free. He's a good guy and knows his stuff. But, I am always careful to double check, and fortunately reading tax code is a strange hobby of mine. Guess everyone needs one ;-) PM me if you need any help with it. I can send you to the IRS publications that are of importance to this particular scenario. Best... |
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Thus, a $65 to $70k deduction at my tax rate of 56% helps me a great deal. 33% federal Tax Rate + 15% self - Employment Tax Rate + 9% CA Tax. My total income is in the mid 6-figures when combined with my wife's. The $65 to $70k deduction doesn't really toss us into a lower tax bracket, but it helps with not having to pay taxes on that amount of income at my tax rate. In other words, as a hypothetical example: Imagine I made $100k. I purchased a vehicle for $70k for business that allowed me to deduct the full 100% (or depreciate the full 100% the first year-2009). My effective income then drops to $30k. My tax rate on 30k, due to my wife's income is still 50%. The math works well. I'm displaying the above as a hypothetical example to assist others, as I know there are many in the same boat as am I. If it's complicated, that's the point. IRS code is not fun, but it helps to be married to one who's a smart gal with a certain advanced degree that everyone loves to hate. You all can figure out what degree that is, I'm sure. But, for the record, she hates it to, so don't let your kids ever take the LSAT and as a final note, the figures are 100% correct for MY situation. If you're coming up with differing figures, your math or interpretation is incorrect, but I can refer you to a very good individual who can assist. Really, I'd like to help, so don't hesitate to PM me on this matter. If you use your X5 for business, and you bought it new this year, I strongly encourage you to at least investigate the option of accelerated bonus depreciation that's available to you. Best |
P.S. the link you posted was to the 2008 179 deduction.
It changed DRAMATICALLY in 2009. 2008 has no relevance to 2009, whatsoever, in terms of this particular subject. Just FYI. But, I'm not an accountant, I leave that to the pros, so I think I've said my peace. If anyone wants to connect with a great accountant and you run your own business 100%, I'd be happy to assist you. Nothing to gain here, beyond a simple good deed. |
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You would have maxed out on social security already, that is 12.4% on your self-employment tax. So no savings there. Medicare at 2.9% is not impacted by deductions, it's straight off the income line. So that lowers your effective rate to 42%. Once you maxout on the brackets, your income doesn't matter. I'll guess most people in this forum make some decent money if they are buying X5s. |
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ABMW,
Odd....I've spoken to my CPA and other ppl. They've all mentioned that for business auto purchases, the car has to be insured as a commercial vehicle under the business name. One of those ppl is also my insurance agent. So, I don't know what's going on. |
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Ding, Ding, Ding. We have a winner. Dude! Never give the dealer sales people the kind of information you did. NEVER! Never the less. Nice car. |
Don't forget the 2009 tax credit. ( If you qualify)
2009 New Car Tax Credit Don't forget your BMW CAR CLUB OF AMERICA rebate. (You did join correct?) |
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I don't agree with you assessment that most X5 owners make decent money. I can't tell you how many dozens and dozens of credit reports I've looked over this year alone, that show insane incomes of $45 to $50k, with zero savings, and $1,500 per month car payments. In 2009, the largest savings I saw for any individual under the age of 30, was around $20k. That person drove a high-end german automobile and earned about $70k. Yes, people on this board probably make more than those on Jeep boards, but I think you'd be surprised to see what most people actually take home. In my professional experience there is little correlation with the car one drives and the income one earns. Just what I've seen.... But, everyone has their own opinions, naturally. Cheers. |
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The exam is a joke and could probably be passed by the majority of individuals on this board whom have a college degree and the slightest bit of financial sense. That's not to say it's not an honorable job, but don't take advice from your insurance agent as it relates to your tax liability, if you can avoid it. In terms of your CPA, he or she is also wrong. The "Sports Utility Vehicle," which is an official definition used by the IRS must be 6,000 lbs GVWR or above to qualify for advanced depreciation, must be purchased for your business, and must be put in service by 12/31/09. It's an area of tax code that the vast majority of tax payers do not qualify for, including most small business owners. If your CPA doesn't commonly confront this issue, there's every reason to believe he's in error. It doesn't make him a bad CPA, but it always helps to work with someone who is familiar with your particular line of work and the specific tax benefits that are available to you. For example, in my line of work my car is literally a roaming office. I frequently drive 100 to 200 qualified business miles each day when things are "happening." I'm not saying your CPA is wrong. He may be correct for your particular situation. But, if you meet certain criteria, as do I, you're eligible to take advantage of many new benefits that were introduced for the 2009 tax year. The ability to deduct the sales tax on new car purchases, for example, is but one small incentive. For a $70k SUV in CA, where the tax rate is near 10% that adds up to $7,000 in deductions. Anyway, good CPAs are hard to find, just as good doctors and good lawyers are. As well, unless you are an attorney or a very qualified CPA, you're not going to understand tax code well enough to determine much, when you find yourself in a complex tax situation. The publications are one thing, but researching tax court case law in order to determine, if you'll qualify for a particular deduction in the event of an audit is another issue all together. Hence, while good CPAs and tax attorneys are not cheap, if you owe a high tax liability (over $75 to 100k per year) it can make a world of difference to seek the advice of a pro. If purchasing an X5, makes sense, and you "in effect" get it half-way paid for, so much the better. You can even take a capital loss on your past vehicle if you've not fully depreciated it in the past, so trading it in for a loss or selling it for a loss can actually create a gain, in some cases. Good luck and call your CPA! You have 8'ish days left! :-) |
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What was sad to see was the behavior of the sales manager, in the face of printed, and published materials straight from BMW. I could have walked, but 99.9% of you who say you would have walked, would have done no such thing. Of course I have an ego, but my ego is not going to let me throw money down the drain to the IRS, when I needed a new car anyway. Complaining about the behavior of the sales manager, not to mention, what took place today with my X5 when it stalled in the middle of an intersection with an "engine malfunction warning display" is the reason I'm complaining. (the above I posted in an ongoing thread) It took 3-hrs. of talking on the phone between SOS and Concord BMW, before SOS finally let them have it. It was almost to the point of a reality TV show, save for the fact that I was stuck in the middle of a 60 mph. intersection for 10 mins. and then the side of the road on and then on the phone for 3 hrs. trying to resolve who was responsible for repairing my 4 day old X5 35d! Avoid Concord at all costs. |
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Is there a time limit on when I have to file for the section 179 deduction or do I do it with my corporate taxes at the beginning of the year? |
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