$3,500 X5d Eco Credit - What's the catch?
 

Ladies and Gents,

So my BMW consideration was previously just used until the $3,500 ECO credit for a new ’11 was pointed out to me. This brings the price of new vs. 1 year used, extremely close (within $5k) after negotiations near invoice. I read the fine/gray print on the site regarding the ECO credit but it didn’t answer very many questions.

Does anyone know if the ECO credit has any “catches”? For example, do I need to use BMW financing? My local credit union is 2.99% for 60 mths which is a lot better than the 4.9% at BMW.

Thanks!

Jason

I don't think there are any catches. I took the cash I received from my lemoned Lexus LX and put it towards the X5 and still received the credit without using BMW financing.

I think you do need to use BMWFS, I suggest you ask dealer that question directly.

Otherwise, no other catches that I am aware of. This BMW-sponsored program, not by dealers.

I didn't use BMW finance for my 2010 X5

Does the new X5 still qualify for the $1800 fed government eco tax rebate as well?

Some dealerships in VA are matching the $3500 offered by BMW, it would be real nice if the rebate was still applicable.

That went away January 1, 2011

There is no catch except for the argument that BMW may not sell as many diesels otherwise, and they need to sell diesels to help their CAFE. This is conjecture, though with the lack of any other evidence, seems the most likely explanation (ie what is BMW getting out of this?).

If you are interested in a diesel anyway this is pretty damn close to a free lunch, and I'm (almost) always of the opinion there is no free lunch.

The govt credit is dead and extremely unlikely to be resurrected, given all the hybrid/diesel/electric car activity going on in the marketplace. On that subject, diesel is the only alternative fuel to date, IMO, that comes close to being a net benefit for the user, the economy, the government, and the environment.

Agreed on the "no free lunch", which is what has me wondering and waiting for the "other hand" to reach out and slap me. I'm starting to think it's because they are nixing the engine and transmission in 2012 for the 40d with 8-speed. There way of moving the vehicles.

Maybe, maybe not. It all depends on your own appetite. The 35d is plenty of juice as it is, the 6 speed is fine. It's possible they will do what you speculate. It's also possible you and/or I could be dead by then.

This may be a stupid question but the $3500 should be taken off the negotiated price right? I can see some dealers using this to get to $500 over invoice in which case the buyer wouldn't really be benefitting from the credit.