Breaking: The i3 Rex is Indeed Tax Exempt in New Jersey After All!

My i3 REx in front of my house with my 8.775 kW solar array in view 

In a surprising turn of events, the New Jersey Department of Environmental Protection (NJDEP) reversed a previous decision to exclude the i3 REx from the States Tax exemption for zero emission vehicles. This hopefully ends the nearly six month saga from the time it was originally thought the range extended version would indeed qualify, to the announcement shortly after the launch that it would not.

I actually found out a few days after I bought my car that it would not qualify, and I would have to pay $3,921.00 in sales tax. This was totally unexpected and would have actually made the range extender nearly an $8,000 option for me! As much as I love having it, I wouldn't have agreed to pay that much for it had I known the effective cost would be so high. For $3,875 I think it's fairly priced. But $7,800? No way! I even dedicated a blog post to this issue back in May when the surprising (bad) news was announced. I will say that I never actually ended up paying it all though. That's because my dealership, JMK BMW realized this was a BMW communication error and not the customers' fault. They decided they couldn't go back and charge customers so much more than they had signed contracts for and they honorably worked out a deal which made everybody happy and nobody cancelled their order. My client adviser, Manny Antunes, sold eleven i3s with range extenders so this wasn't an easy decision but the dealership decided it was better to keep the customers happy than to call them all up and tell them they now owed nearly $4,000 more for sales tax. 

However that wasn't the case with other dealerships, and I know people who bought REx cars and had indeed paid the every penny of the sales tax and didn't get any other dealership rebate or credit. They will be very happy when they open the mailbox one day soon and find a nice check in there because this decision is retroactive to May 1st, which is before any i3s were sold in the US. I was actually the first i3 REx delivery in the US, and that took place on May 21st so all i3 REx cars sold in NJ will indeed qualify for the ZEV tax exemption. 

The NJDEP Zero Emission Tax Exemption list has already been updated to include the i3 REx and can be viewed here. Let's just hope this ends the, "It's tax exempt…no it's not," saga we've had here in the Garden State.

"Monroney Hold" Has Hundreds of Range Extended i3s in Limbo

i3s lined up at the port in New Jersey

For a little over a month now, cargo ships from Bremerhaven, Germany have been arriving weekly at the port in New Jersey to unload anywhere from dozens to hundreds of shiny new i3s. My i3 arrived last week on the Fedora, which left Germany back on April 30th. Back when I learned it was booked on the Fedora and would arrive here on  May 15th, I assumed that by the 20th or 21st of May, I'd be at the dealer signing the paperwork and driving my i3 home. I was wrong.

The BEV i3s Monroney label

I now have no idea when I'll be getting my car, and neither do the hundreds of other people that ordered an i3 with the range extender and whose cars are currently here in the US sitting at a port somewhere. Officially the holdup is a "Monroney Hold" - the fact that the EPA certification has not been completed so BMW doesn't have a Monroney label (window sticker) to post in the window before the car leaves the port, which is required by law. The range extender option changes (shortens) the car's electric range, and also requires an official MPG rating so BMW couldn't use the same Monroney label as they did for the all electric i3. The i3 REx would need to be fully tested and certified as a completely different car. To make matters worse, the majority of i3's sold in the US have the range extender option. For example, my client adviser Manny Antunes of JMK BMW has sold thirteen i3s so far and only two of them are the BEV version. Eleven of the thirteen have the range extender and his clients are beginning to call him frequently now, wondering when they can expect delivery. He has no information to offer other than he'll contact them as soon as he hears something from BMW - or a truck somehow magically pulls up to the dealer with a load of i3s with range extenders!

Where's mine?

BMW is indeed delivering i3s to customers now, but all of them sold so far have been the fully electric BEV i3. The i3 RExs keep arriving in the US alongside their BEV brothers, but they cannot be released and trucked to the dealerships until they have the EPA Monroney label. BMW isn't communicating the exact reason for the lack of EPA certification, but it appears to be a combination of BMW providing the EPA with the required information a little late, and the fact  that the i3 REx is different than anything the EPA has certified before so they are taking their time to make sure they get the certification right. The closest thing to the i3 REx would be the Chevy Volt, which for most of the time the gasoline engine is running is a series hybrid and only charges the battery. However under certain conditions the gasoline engine of the Volt does indeed directly power the wheels, and in those conditions it is a parallel hybrid, like a Toyota Prius. The i3 REx is the first (second actually. The Fisker Karma was also a series hybrid - thanks to reader Andrew Chiang for pointing that out to me. Fact is, I've tried to block out all memory of the Karma!) true series hybrid the EPA has ever certified and the range extender will only serve to charge the battery. I don't see why that would be a problem because to me it seems like the Volt would have been even harder to certify because it is both a series and a parallel hybrid depending on the driving conditions. In any event, BMW claims to have furnished the EPA with everything they need for certification and are cooperating with the EPA in an effort to get this issue resolved as quickly as possible.

Battery log sheet courtesy George B

This is clearly an example of a "first world problem," but those who have been waiting patiently for their car are growing anxious as the days pass and their car is simply sitting at the port and waiting for the label. Some have even wondered what the state of charge of the cars are, and if by sitting so long (some have been sitting at the port for over a month now!), have the "vampire loads" reduced the charge level to dangerously low levels? Personally I don't believe this is an issue, and I'm sure BMW is monitoring them. BMW ships the cars with only about 25% state of charge and charges them up at the port. All of the cars used for test drives had a battery log sheet in the glove box which shows BMW is certainly monitoring the SOC of all the cars from manufacture to delivery. Plus, if the i3 is anything like the ActiveE, then the car will hold the SOC very well when not in use. My ActiveE would only lose about one percent per week when sitting unused. I doubt sitting for a month or so will have any noticeable reduction in charge and unless the cars arrived with less than 10% SOC and weren't monitored and charged I doubt there is anything to worry about. However, let's hope this "Monroney Hold" gets resolved soon and BMW can begin deliveries of the i3 REx cars that are already here and waiting - and mine in particular!

Real World Range Test: BMW i3 vs BMW ActiveE

Now that BMW has begun to deliver some BEV i3s to the ActiveE Electronauts, some of those in the ActiveE trial lease program who haven't yet gotten their i3 have been asking how the i3 compares to the ActiveE. Questions on ride quality, acceleration, handling and charge rate have been asked, but the biggest concern is: How does the range compare? After all, with electric vehicles, range is paramount.

So I got together with Michael and Pamela Thwaite who just last week picked up their Ionic Silver i3 and we mapped out an 80 mile loop that would include roughly 50% highway and 50% secondary and tertiary roads. While everybody has different driving needs and patterns, it was our hope that this course would provide an evenly balanced mix of different driving conditions. That being said, this wasn't a carefully controlled scientific experiment. We didn't weigh ourselves to make sure both vehicles were carrying the same weight, we didn't calibrate our speedometers or record the barometric pressure so please don't bother commenting on why this was a flawed experiment because it wasn't perfectly controlled. We did make sure we had proper tire pressure, we took turns following and leading each other and we tried our best to maintain the same constant speeds. We drove in the default (Comfort Mode) driving mode and didn't use Eco Pro driving mode at all. We met on Saturday morning at my restaurant which has two ChargePoint EVSEs in the parking lot and after about two hours of charging we set out with Pamela driving their i3 and my wife, Meredith, driving my ActiveE. Michael and I were the co-pilots so we could live blog the event, post pictures on social media sites and make sure we stayed on course.

Both cars charging up for the challenge at my restaurant in Montclair, NJ.

With both cars fully charged, the ActiveE showed an estimated 86 miles of range, while the i3 predicted 98. Which will be more accurate?

It was a warm, cloudy day with temperatures in the 80's. We knew we would need the air conditioning so we agreed to both use it only when we were driving over 45mph and under that we would just open the windows. The first stop, about 20 miles in, was the headquarters of BMW of North America. We figured it was an appropriate destination and since it was a Saturday they wouldn't mind us parking in front of the main entrance for a photo op. We were pleased to find a life sized i3 decal applied to the glass of the front doors. BMW is evidently proud of their first all electric vehicle. At this point we had both used 19% of the available battery. I was surprised the i3 was holding its own, especially since that leg was about 75% highway. We did drive the speed limit on the Garden State Parkway though, and stuck to about 60mph. I'm sure if we drove faster the i3 would have used more battery than the ActiveE. Still, I really expected the ActiveE to jump out to an early lead since we were driving at highway speeds for most of the first leg.

At BMW HQ in Woodcliff Lake NJ - Note the i3 overlay on the doors

The next leg of the journey would be about 40 miles, with the first 30 miles or so on all secondary and tertiary roads and we would end up in Denville, NJ. Michael and I were trading texts during the way and for at least the first 20 to 25 miles of this leg (a total of 40 to 45 miles driven) we were still nearly dead even in battery state of charge with the ActiveE having a 1% advantage with battery state of charge.  On route to the Route 80 leg (which would be our highest speeds of the day and all uphill) we were driving on Route 23 at 50 to 55mph and the ActiveE started to gain an advantage of a few more percent.

Driving the back roads of Bergen county was a pleasure on a nice sunny Spring day

We took turns following and leading each other for the entire route.


Then came the blow that the i3 couldn't recover from. Driving on Route 80 upgrade at the 65 miles an hour speed limit for about 10 miles finally gave us the separation we expected. We were 60 miles in (59.8 exactly) and the ActiveE now had a 6% state of charge lead (46% to 40%) and a predicted range of 9 more miles (40 miles to 31 miles). This clearly reinforces what many of us imagined. The i3 is a warrior on low speed driving, but at faster highway speeds it's a bit out of its element and the range will be substantially compromised.  At highway speeds the weight of the car isn't nearly as important as its aerodynamics, the exact opposite of low speed driving where weight influences energy use much more. The lightweight i3 has a respectable Cd of .29, but it is tall and has a large frontal area which increases its CdA (the combination of drag coefficient and frontal drag area) making it less than ideal for cheating the wind resistance at highway speeds.

The final 20 miles were about 30% highway (this time down hill most of the way) and 70% secondary roads with about 4 miles of stop and go, traffic light to traffic light driving. We decided to make one last stop at an appropriate destination which happened to be along the way. We stopped at the Thomas Edison National Historic Park in West Orange. What would be more appropriate for an electric car challenge anyway?

After the quick stop we headed back to Nauna's and finished the day driving exactly 80 miles. The ActiveE won the range challenge by 6 miles. Here are the final statics:

2011 BMW ActiveE
Remaining SOC: 27%
Estimated miles remaining: 22
Trip efficiency: 4.1 miles per kWh
Total miles: 102

2014 BMW i3
Remaining SOC: 20%
Estimated miles remaining: 16
Trip efficiency: 5.4 miles per kWh
Total miles: 96




So adding the mileage driven to the remaining mileage the i3 ended up with 96 miles of range and the ActiveE with 102. The i3 actually came very close to predicting the actual range and was only off by 2 miles since it predicted 98 miles of range when it was fully charged that morning. My ActiveE actually beat its range prediction by 16 miles, but that is because my regular driving routing is mostly highway so the car has learned to predict the range based primarily on high speed highway driving. All in all the i3 fared about as well as I expected. It is an incredibly efficient electric vehicle and is in fact now the most efficient car sold in America. However the ActiveE has a battery that is nearly 50% larger (21.6kWh's to 32 kWh's) than the i3's battery and in the end battery size beat efficiency. If the i3 had just a couple more kWh's, I'd be writing a different ending. BMW has been billing the i3 as its "Megacity" car. That was even the codename during development and they weren't kidding. It is much better suited to live its life on congested city streets than it is roaming the high speed highways of the US and the Autobahns of its homeland. I would speculate the i3 will only go about 70 miles if driven all highway, and that's at the 65 mile speed limit. If you were to increase that to 70 or 75 miles than the range will likely drop to 60 to 65 miles. However if you were to drive on secondary roads at around 35 to 40mph, I suspect 100 to 110 miles would be easily attainable in moderate temperatures when you don't need the air conditioning or heater much. So if I were rating the range of the all electric BMW i3, I'd say 60 to 110 miles, conditions provided.

The Thwaite's i3 topping off after the range challenge

One last no-so-small detail. The i3 we used is brand new, while my ActiveE is 28 months old and has 20,100 miles on it. Based on my recorded data I believe its battery has lost between 8% and 9% capacity. If you factor that in, it's clear that while my two year old ActiveE has a slightly better range than a new i3, it had a substantially better range when it was new. Probably about 15% more, which actually coincides with the EPA range ratings for both vehicles.



Some more pictures of the day:

BMW i3 Bottom Line: $494/mo With No Money Down

I wrote this post a few days ago for BMWBLOG. There has been so much speculation and incorrect information circulating in regards to the OwnersChoice with Flex option that BMW FS is offering on the i3 that I wanted to get some info out there on it. It's a new product, so it's certainly understandable why there are questions. However I've read where people have gone as far to call it a "convoluted scam" as if it's just a way to charge the customer more money and in fact it's the opposite. Using OwnersChoice with Flex you can drive off in a base i3 BEV with no money out of pocket for as little as $494/month depending on where you live.  Now that BMWBLOG has had it for a couple days and InsideEVs has run it also, I figured I'd put it up here also. If you have any questions, please fell free to ask in the comments and I'll answer whatever I can.

 BMW i3 Bottom Line:  $494/mo With No Money Down

There has been a lot of speculation with regards to financing rates and residual values for the BMW i3. A few months ago we ran this story where we posted preliminary i3 residual values that were lower than the residual values of other electric cars.

BMW Financial Services evidently took a closer look and now that the official financing figures are out we see they increased the residual values by 4% across the board.  

Original Reported Residuals       Actual Residuals 

• 24 month residual – 49%                       53%        
• 30 month residual – 44%                       48%
• 36 month residual – 39%                       43%
• 42 month residual – 34%                       38%
• 48 month residual – 28%                       33%
• 54 month residual – 25%                       29%
• 60 month residual – 21%                       25%

(These figures are based on 15,000 miles per year. Add 2%for 12,000 mile/year leases, 3% for 10,000 mile/year leases.  Extra mileage is charged at 20 cents per mile.)

  

Additionally, the online “Build your Own” BMW i3 site now features monthly payment calculations for OwnersChoice with Flex. Up until now, only the MSRP was listed. OwnersChoice with Flex is a new product created by BMW Financial Services specifically for the i3. It allows the customer to take up to $7,500 off the price of the car as a capitol cost reduction, thus allowing lower monthly payments. The customer does not have to pay the money up front and basically owes that to BMW FS. The reason $7,500 is the cap is because that is the maximum amount of the federal tax credit that the i3 qualifies for. BMW FS is basically lending the customer the money so they can have lower monthly payments. 

The customer can repay the Flex capitol cost reduction anytime (like when they get the money back on their taxes) or wait until the end of the term. At the end of the specified term, the customer has the choice of returning the car and paying the amount they took as the capitol cost reduction (if they didn’t repay it already), or keeping the car and paying the residual value, plus the unpaid capitol cost reduction. It’s really a purchase, that offers the benefits of a lease and lets the customer decide whether they want to keep the car or return it at the end of the term. 

So what’s the bottom line on a 36 month OwnersChoice with Flex work out to? With no money out of pocket, depending on where you live you can drive off in a base i3 BEV and your payments will be $494 per month for 36 months. That’s with taking the full $7,500.00 capitol cost reduction (which you then owe BMW FS) and with only 10,000 miles per year allowed. If you load the BEV i3 up with every available option the monthly payment raises up to $661 per month. It’s worth noting that these figures do not include sales tax. There are states where electric vehicles are sales tax exempt (like New Jersey where I live) and it appears the i3 site does not add the sales tax regardless of whether you use a zip code where sales tax is collected or not. Perhaps that will be corrected though, as they only updated the site to show the monthly payments within the past day or so. 

The OwnersChoice with Flex was developed by BMW Financial Services specifically so i3 customers can realize the full $7,500 electric vehicle federal tax credit. When leasing an i3, BMW FS will only pass $4,875.00 of the $7,500 federal tax credit along to the customer. They are standing by their statement that they do not get the full $7,500 credit, and are passing along every dollar that they do get to the customer. This likely makes leasing a poor option on the i3 when compared to OwnersChoice with Flex.

State of Washington Approves BMW i3 REx For Sales Tax Exemption

A little over a month ago we learned that BMW i3 REx buyers in New Jersey wouldn't have to pay sales tax on the vehicle as the State was including it in the zero emission vehicle tax exemption. That will obviously help i3 REx sales immensely since it will likely save the average i3 REx buyer in New Jersey about $3,500. There was never a question of whether the BEV i3 would be tax exempt, since it is truly a zero emission vehicle, but the i3 REx isn't. The range extended Chevy Volt, for example is not tax exempt in NJ. The reasoning behind the i3 REx exemption is two fold. First, the i3 REx has about an 80 mile all electric range which is more than double the Volt's. This means for most buyers the i3 REx will likely be driven on electric much more than the average Volt owner drives their car on electricity. Secondly, the i3's range extender isn't as robust as the Volts. You could easily drive the Volt all the time without ever plugging it in. I don't know why you would buy a Volt and do that, but you could without any problem. The i3 REx on the other hand could not be driven like that, and it really needs to be charged and driven in electric mode most of the time.

So today we got news that Washington State followed New Jersey's lead and certified both the i3 BEV and i3 REx to get the State's zero emission tax exemption, saving i3 REx buyers in The Evergreen State a good chunk of change. In fact, most i3 REx buyers there will likely save as much as the REx option costs-$3,850!

I noticed that InsideEVs just put up a post about this and since I'm currently in Geneva covering the Geneva Motor show for them I figured I'd "borrow" Eric Loveday's post on this. Below is the full post he made for InsideEVs.com:

“We ARE smarter than California,” says Washington state representative Chad Magendanz.

BMW i3 With REx Qualifies For Sales Tax Exemption in Washington

Magendanz made that statement before and now he’s saying it again.

When Magendanz stated that previously, it was to make it know that he was urging the state of Washington to grant the BMW i3 REx sales tax exemption.  This idea was that Washington would jump in front of California, a state that seems reluctant to award EREVs due to the ICE on board.

Now, Magendanz is saying “We ARE smarter than California” again, but this time it’s to celebrate the fact that the i3 REx will be sales tax exempt in Washington.

Per the press release sent to InsideEVs:

• Dept. of Revenue reverses itself, says new electric BMW with made-in-WA parts will get tax exemption after all
• State Rep. Chad Magendanz was happy to find out that one of his prime-sponsored bills is unnecessary, now that a state agency has reversed its position on a tax exemption for electric cars.

The Issaquah Republican had been pushing legislation to clarify that electric vehicles such as the new BMW i3 qualify for a state sales tax exemption. The state Department of Revenue (DOR) told Magendanz last month that the i3 – which has carbon fiber parts made in Washington – wouldn’t qualify because of an optional gas-powered “range extender” BMW offers to consumers worried about their car running out of power. Magendanz introduced the bill to counter the department’s interpretation of the exemption law, but last week DOR informed lawmakers it had changed its mind.

“It’s a great thing when common sense prevails in government,” said Magendanz. “Unlike California, Washington is sending the message that we encourage innovative, environmentally-friendly automotive technology.”

The issue of the sales tax exemption came to Magendanz’s attention when he read that California had backed out of a deal with BMW to grant the i3 the state’s coveted “Clean Air Vehicle” white decal, which gives drivers full access to HOV lanes. California said the range extender – even though it’s optional and not permanently connected to the car – compromised the i-3’s status as a solely electric vehicle.

The i3 is expected to hit the U.S. market this spring. SGL Group in Moses Lake produced carbon fiber components for the car’s passenger compartment.

The bolded statement of “not permanently connected to the car” is clearly inaccurate when one opts for the i3 with REx.  And some of the anit-California comments are untrue too, such as the i3 not qualifying for the white sticker, which is actually does, provided its the BEV version.

Washington joins New Jersey, site of BMW’s US headquarters, in exempting the i3 REx from sales tax.