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      04-07-2015, 07:53 PM   #162
Mr.SugarSkulls
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Drives: BMW i8
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Location: Long Beach, CA

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2016 BMW F13 M6  [10.00]
Quote:
Originally Posted by davezaristo
Quote:
Originally Posted by OneRib View Post
Some states like CA just charge tax on your monthly payment or the depreciated amount of the car while in the lease term (it all means the same thing). This rate can be the same as the sales tax or a specialized rate that is different for sales tax.
PA for example has a 6% sales tax but charges 9% tax on every lease payment (higher in Philadelphia or Allegheny County).

Other states charge sales tax on the whole sale price of the vehicle. I think Texas does this. For this reason leasing is not desired. BMW has combated this by creating owners choice which gives a temporarily low initial payment with a lump sum at the end. I circumvents the lease tax and still allows the buyer to walk away before the lump sum is due.

Taxes vary too much from state to state for me to be accurate or knowledgeable about every state.
I am in CA and that makes me wonder why I have to pay an upfront tax when taxes have already wrapped into the monthly payment..and the funny thing is that I got two similar quote and while most of the numbers being equal, the quote with additional discount off MSRP is $100 higher on upfront tax, which i can't seem to understand how it was calculated...
You and me both- especially that first point. Is that legal?

Btw OP- thank you so much for this post, that must have taken you a while, so your efforts are appreciated!
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