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  #1  
Old 02-11-2013, 08:37 PM
tguerino tguerino is offline
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Location: houston
 
Join Date: Jul 2005
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Mein Auto: bmw 740i
1 pay lease / owner choice discount

I understand that BMW pays the sales tax on a one-pay lease as a discount for paying the entire lease in advance. I live in TX which charges sales tax on full purchase price (cap cost) of the car so having BMW pay the sales tax for me is a nice discount.

But in TX if you trade-in a car at the time of purchase you are only charged sales tax on the difference between trade value and the cost of the new car. If I trade in a car equal in value to the purchase price of the new car there will be no sales tax owed. Will BMW still give me a discount on the one-pay lease equal to the value of the tax that "would have" been owed had I not made the trade-in?

Thanks for any info on the one-pay discount - and no need to advise not to pay lease up front. Those bases are covered.

Cheers!
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  #2  
Old 02-13-2013, 04:29 PM
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mclaren mclaren is offline
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Location: Central Florida
 
Join Date: Jan 2005
Posts: 3,066
Mein Auto: 2013 650i Coupe
I can tell you about Florida. If you trade in a car and then do a 1 pay lease you pay sales tax on the monthly lease payment. The money factor is reduced by .0008 but that reduction is subtracted from the non subsidized rate which was .0017 when I did mine so my money factor was .0009. The subsidized rate was .00125 so with max MSDs I could have got a lower MF. I believe that if you trade in a car and do a 1 pay lease there will be no reduction in tax owed, it will be just like you didn't trade in. I leased because I wanted the $2250 incentives from BMWFS. My trade was worth 37k so I could have just bought the M3 and only paid sales tax on the difference. That actually might have been the best idea. I figured with the 62% residual and a new M4 coupe coming out I might be able to buy my car at a big discount from the dealer at lease end.
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  #3  
Old 02-14-2013, 08:36 AM
Robert A Robert A is offline
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Location: Los Angeles
 
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Mein Auto: BMW 535d
Where did you hear that BMW pays the tax?

Quote:
Originally Posted by tguerino View Post
I understand that BMW pays the sales tax on a one-pay lease as a discount for paying the entire lease in advance. I live in TX which charges sales tax on full purchase price (cap cost) of the car so having BMW pay the sales tax for me is a nice discount.

But in TX if you trade-in a car at the time of purchase you are only charged sales tax on the difference between trade value and the cost of the new car. If I trade in a car equal in value to the purchase price of the new car there will be no sales tax owed. Will BMW still give me a discount on the one-pay lease equal to the value of the tax that "would have" been owed had I not made the trade-in?

Thanks for any info on the one-pay discount - and no need to advise not to pay lease up front. Those bases are covered.

Cheers!
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  #4  
Old 02-14-2013, 10:33 PM
tguerino tguerino is offline
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Location: houston
 
Join Date: Jul 2005
Posts: 17
Mein Auto: bmw 740i
From several dealers

Heard it from 2 separate dealers.
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  #5  
Old 02-15-2013, 07:12 AM
rjdoc74 rjdoc74 is offline
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Location: LA CA
 
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Mein Auto: 2011 X5D and 2014 M5
Can any of the dealers confirm that this is true?
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  #6  
Old 02-15-2013, 09:34 PM
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dkreidel dkreidel is online now
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Location: OC CA + Bear Country Montana
 
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Posts: 1,765
Mein Auto: BMWs
Quote:
Originally Posted by tguerino View Post
I understand that BMW pays the sales tax on a one-pay lease as a discount for paying the entire lease in advance. I live in TX which charges sales tax on full purchase price (cap cost) of the car so having BMW pay the sales tax for me is a nice discount.

But in TX if you trade-in a car at the time of purchase you are only charged sales tax on the difference between trade value and the cost of the new car. If I trade in a car equal in value to the purchase price of the new car there will be no sales tax owed. Will BMW still give me a discount on the one-pay lease equal to the value of the tax that "would have" been owed had I not made the trade-in?

Thanks for any info on the one-pay discount - and no need to advise not to pay lease up front. Those bases are covered.

Cheers!
I wish! This IS NOT the case in California. GF just did a 1 pay lease on a '13 X5 and I negotiated the deal so know for 100% certainty she's payed LA county taxes.
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