Question about lease transfer

[Rschin2]

I am considering transferring my F80 lease to a family member. Since the sales tax is worked into the payment already, he won't have to pay sales tax up front on the value of the vehicle when it's transferred right? As far as I can tell, the lease payment is transferred to him and doesn't change, but a transfer fee is paid. But that's pretty much it right?

[bb1857]

From what I understand that is not correct. Being that you are "selling" the car it becomes a new transaction in the eyes of the state so it will be taxed accordingly. Not sure how LA does it but he/she would most likely either get taxed fully on the newly assessed value or taxed on the residual percentage of the newly assessed value. Anytime a title changes hands a tax will be collected unless you are truly transferring ownership to a direct family member and even that is typically only allowed one time per VIN. Being that BMWFS is first on the title, any change in second position will likely incur a new tax.

So the new payment would be your base payment minus your original tax(and you dont get a refund either sadly), then they can decide to pay the new tax upfront or have BMWFS roll it into the current base payment plus the transfer fee.

[Rschin2]

Originally Posted by bb1857

So the new payment would be your base payment minus your original tax(and you dont get a refund either sadly), then they can decide to pay the new tax upfront or have BMWFS roll it into the current base payment plus the transfer fee.

Okay I think that all makes sense now. Thanks!

[jjrandorin]

While all that is true, you might want to check and see if it applies to a FAMILY MEMBER. I dont know, but I know there are special provisions in California law if you gift a family member an asset like a car, vs selling it.

Again, I dont know, and you might want to check with BMW FS and tell them what you are intending to do, and specify its a family member and see what (if any) differences there might be.

If there IS a difference for family member, it might be only for "specific" family members as well (mother, father, brother, sister, children, wife) for example. Like I said, I dont know, but I would definitely check it out on that angle.

[erictrainer]

The payment will change, if the car is being transferred to a person in another state. So if you're in LA and the swappee (don't think that's a word but anyway...) is in CA the payment will adjust to reflect CA taxes. So if he is in your same state, then his payments should remain the same. I would call and ask BMWFS anyway to confirm, because not every case is the same.

For example, my car was a lease swap which the original owner had registered in Long Island, NY. In NY you pay all the lease taxes upfront. So when we transferred the lease, I paid the transfer fee $500, and my payment continues to be his exact payment (no taxes included, he had already paid them) despite me living and registering the car in FL where sales tax is 6%.

[mattkim85]

If you call BMWFS's Lease assumptions department, they have a Sales Tax Department that can answer those questions in detail.

[White340]

I moved from NJ to NY one year into my lease. My NJ tax was worked into my payment. When registering in NY, they had me pay NY tax on my remaining payments (so effectively double paying tax). The name on the lease didnt change so its even worse in my case. Sucks, but now I know!

[mngobara]

So you guys are saying that if I live in Texas and I assume a lease from someone living in NY, i will end up with the exact payment plus $500 transfer fee?

[bb1857]

Originally Posted by mngobara

So you guys are saying that if I live in Texas and I assume a lease from someone living in NY, i will end up with the exact payment plus $500 transfer fee?

No that is not correct. You assume the new tax based on the value the state puts on the vehicle. Some states require it be paid upfront and some will allow you build into the payments.

[mngobara]

Does anyone know what the case is here in TX? Pay upfront or roll into the payment