Buy a new BMW diesel, get a tax credit

BMW 3-series diesel  Photo Courtesy BMW Blog 

Count BMW as the next manufacturer to dive head-first into the U.S.’s new clean diesel pool.

The Greenville News (www.greenvilleonline.com) is reporting that the company will introduce diesel versions of its popular 3-series sedan and X5 SUV, dubbed the 335d and X5 xDrive 35d, at next week’s Los Angeles International Auto Show. Concept models were introduced at the North American International Auto Show in Detroit earlier this year.

The vehicles will be priced at $44,725 and 52,025 respectively. And just as many hybrid model tax credits are expiring, the BMW’s will be eligible for a tax credit of $900 and $1550 under the IRS’ Alternative Motor Vehicle code.

Diesel’s have been largely unpopular here despite superior fuel economy, while the streets of Europe teem with them. Diesels account for the majority of European BMW’s and just under half of them worldwide. Why? Stringent U.S. environmental standards (with state-by-state variances) traditionally rendered their development and production cost prohibitive. Diesels are also perceived stateside as heavy polluting cars with clackety engines.

But times have changed.  Mercedes-Benz introduced several 2009 models powered by its 50-state legal “Blue Tec” diesel engines. Audi is slated to release a clean diesel version of its A4 sedan, and Cadillac has jumped into the fray with CTS diesel scheduled for 2009. On a recent trip to France, my wife and I rented a Ford C-Max, a European model which was sort of a mini-van-agon. The vehicle was solid, quiet, and emitted no visible exhaust, even under heavy acceleration.

In fact, the new diesels are virtually indistinguishable under operation versus gasoline cars and many produce lower emissions as well. According to BMW spokesman Richard Brekus, the new diesels will continue this trend, with the 335d achieving 30 percent better fuel economy than its gasoline counterpart and the X5 scoring impressive MPG’s of 19 city and 26 highway.

Expect to see the new BMW diesels to hit showrooms just in time for the Christmas holiday.