[CT] Leasing Questions. CT Lease-rs Come on In!

[MNR]

I am new to leasing and am looking to assume an F80 lease. I've been working on one deal in particular but I am not quite sure how the whole process works.
I've been doing my best to communicate with the seller but still have some questions on the process.

1) I am told by the seller that the taxes are factored into the lease payment (he is from NJ) but I don't think this is the case in CT. Do CT residents who lease get the typical yearly Motor Vehicle Property Tax bill in the spring as they would if they had purchased the car and will it come from my town of BMWFS? Will my payment decrease from the original payment if taxes are not factored into payments in CT?

2) How does registration work on a lease assumption? I assume I would be responsible for going to the DMV and registering (identical to a private party sale) but what happens with proof of ownership (e.g. title)? How would one go about registering a lease-assumed car - out of state nonetheless - in CT?

I figured I'd ask in here as it seems many on this board are lease advocates. This is my first lease and the seller is not familiar with lease transfer process outside of NJ. I have to wait until his new vehicle arrives next week before paperwork starts but it doesn't hurt to start ironing out the details.

[shwinturbo]

For #2, at the completion of the lease-assumption process BMW sends you all of the paperwork that you need that you will take to the DMV, the title is also sent to you as part of this package. It's a lot of paperwork but i took it all straight to the DMV and it worked out just fine. this was a CT to NY assumption

[Typeslice]

Re: #1, he is referring to the sales tax on the lease. You are responsible for your state sales tax on the sum total of your lease payments. I'm not sure how that works across states. I assume your lease payment would either go up or down for the difference between sales tax in the two states? The personal property tax is completely separate. You will still be responsible for the annual personal property tax on the car in CT. BMWFS will receive the bill from your town and will then bill you for it separately from your monthly lease payments.

[MNR]

Awesome - thank you all!

[Riverside]

MNR, how did the process go when transferring the lease on the sales tax situation?

[MNR]

Originally Posted by Riverside

MNR, how did the process go when transferring the lease on the sales tax situation?

I actually ended up foregoing the lease assumption idea and am now patiently waiting for the right F80 to purchase.

I called CT DMV twice, both times receiving a mixed bag of answers. The best answer I was given was "we don't handle the sales tax, the leasing company does". That was the only piece of information I walked away with after spending a total of more than an hour on the phone with the wonderful CT DMV.

I also called BMWFS twice and was told that CT does not recognize sales tax paid in the past and as a result, the assuming party is on the hook for sales tax at time of registration. The first rep wasn't sure if this was to be factored in monthly payments on an assumption (albeit being able to when leasing new) due to the fact this would amend the original contact because of a different tax rate. The second rep told me that I would most likely be required to stroke a check for sales tax based on the book value of the car at time of registration.

The whole tax situation combined with having to physically go to the DMV myself to register, then go get a VIN verification (due to out of state purchase), and then have to go back to the DMV to finalize really turned me off from the idea of an assumption. I cannot understand how a less than 2-year lease term of a vehicle can warrant sales tax on the car's full book value. It's probably the same reason CT implemented a tax that charges a buyer $100 when trading in a vehicle...the answer - revenue.

If anyone has any additional info to share about the process in CT, I think it would be extremely beneficial to all. From what I gathered, however, it seems that there are quite a few hoops to jump through and taxes do not work in the assuming party's favor.

[Riverside]

Thank you for that, I had a feeling that would be the case with how CT money grabs at every corner. I'm in a similar situation now of looking to either buy an F80 or lease depending on what comes around. The one I had my eye on just sold also which is unfortunate. I'm not sure of what part of CT you're in, but the the Fairfield County area seems to be getting an influx of CS/Base F80s coming off leases which is reassuring.

[MNR]

Yup - I think in our case of being in CT purchasing would be best.

The mixed bag of answers still gives me hope, though. Hoping someone that is located in CT and has assumed an out of state lease can chime in with their experience.