Question about Tax on Leases

Hyper psi-atic · 04-24-2009, 01:05 PM

Hey guys, I'm just wondering what everyone here paid or was offered on their leases for "sales tax". The reason I ask is because I have been told from some dealers that they tax on the Depreciated Value of 36 Month lease + Finance Charges (Roughly $20K), some dealers have charged sales tax on the Full Sell Price (Roughly $49K) and then some dealers have said they charge sales tax on the MSRP which could be up to ($54K).

Taking these different numbers into consideration, you are talking about VERY large differences in the monthly payment if you roll tax into your payments.

1st scenario = $16/month in tax
2nd scenario = $41/month in tax
3rd scenario = $45/month in tax

I know every state is different, BUT i have been told by some Auto Lease experts that the dealer is actually able to tell the customer whatever they like when calculating the tax amount as long as it meets the minimum state level and anything additional they suck out of the customer is dealer profit. In any business this would be Fraud but i guess the customer is always a victim in Auto Sales.

Anyways any input would be helpful, cuz I want to walk into the Finance Dept. and tell him to F off when he trys to pull some shady number shit like this on me. I can pay $550 a month or $596/month based on this one little detail.

iScream · 04-24-2009, 01:26 PM

have a good look through this page:

http://www.leaseguide.com/lease09.htm

Looks like it should be tax on the value of the lease, not the value of the car.

Now I am gonna go back and check my lease to see if I got ripped....

cougfan335 · 04-24-2009, 01:27 PM

I think here in Washington the sales tax is based on the sale price and is added to the capitalized cost.

iScream · 04-24-2009, 01:30 PM

Quote:

Originally Posted by iScream

have a good look through this page:

http://www.leaseguide.com/lease09.htm

Looks like it should be tax on the value of the lease, not the value of the car.

Now I am gonna go back and check my lease to see if I got ripped....

yup, I got ripped. Not gonna let that happen next time...

Hyper psi-atic · 04-24-2009, 03:37 PM

Quote:

Originally Posted by iScream

yup, I got ripped. Not gonna let that happen next time...

Dude you might not have been ripped off, and thats whats sucks so bad! So in MD ive been asking around trying to get an answer from any BMW Financial Rep and do you know how hard it has been? Nothing comes across soo shady as asking a BMW Financial Rep about their calculations and inputs for their monthly payments. U would think i asked what color panties his wife wears, which i will if he doesnt tell me the damn tax calculation. haha

Anyways - It is a huge difference and we shouldnt be paying sales tax on the full purchase price or MSRP, cuz when we return our cars after 3 years...THOSE MuthaF***ers get to charge sales tax on the price they sell it for again! Shit you can get the guy that buys it after me, BUT i dont wanna pay full sales tax on a car i dont own and have to return in 3 years. PLUS i found out Auto industry is the only business that charges tax on Finance Payments. Thats like buying a $500K house, having $30K in finance charges and paying taxes on $530K ! Who would agree to that bullshit? Sorry for the rant, but I wrote my CA and told him to tell the Financial Rep that i'll be in tomorrow and he better have his wife's color panties fresh in his mind cuz he gonna be telling me everything !!! haha

04-24-2009, 01:05 PM	#1
Hyper psi-atic Lieutenant 30 Rep 428 Posts Drives: E92 335i M-Sport, 6MT, AW/CR Join Date: Apr 2009 Location: NoVA iTrader: (3)	Question about Tax on Leases Hey guys, I'm just wondering what everyone here paid or was offered on their leases for "sales tax". The reason I ask is because I have been told from some dealers that they tax on the Depreciated Value of 36 Month lease + Finance Charges (Roughly $20K), some dealers have charged sales tax on the Full Sell Price (Roughly $49K) and then some dealers have said they charge sales tax on the MSRP which could be up to ($54K). Taking these different numbers into consideration, you are talking about VERY large differences in the monthly payment if you roll tax into your payments. 1st scenario = $16/month in tax 2nd scenario = $41/month in tax 3rd scenario = $45/month in tax I know every state is different, BUT i have been told by some Auto Lease experts that the dealer is actually able to tell the customer whatever they like when calculating the tax amount as long as it meets the minimum state level and anything additional they suck out of the customer is dealer profit. In any business this would be Fraud but i guess the customer is always a victim in Auto Sales. Anyways any input would be helpful, cuz I want to walk into the Finance Dept. and tell him to F off when he trys to pull some shady number shit like this on me. I can pay $550 a month or $596/month based on this one little detail.
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04-24-2009, 01:26 PM	#2
iScream solid @ 153, no, 155mph! 15 Rep 335 Posts Drives: '07/'09/'13 335, '16 340ix Join Date: May 2008 Location: Washington, DC iTrader: (0)	have a good look through this page: http://www.leaseguide.com/lease09.htm Looks like it should be tax on the value of the lease, not the value of the car. Now I am gonna go back and check my lease to see if I got ripped....
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04-24-2009, 01:27 PM	#3
cougfan335 First Lieutenant 10 Rep 326 Posts Drives: 335i Coupe MT, Montego/Saddle Join Date: Mar 2007 Location: Reno, NV iTrader: (6)	I think here in Washington the sales tax is based on the sale price and is added to the capitalized cost. __________________ e92 335i: Montego, Saddle Brown, Burl Walnut, MT, Sport, Prem, CW, PDC, Rear Shade. Mods: JB4, BMS Dual Intake, Cyba Scoops, Beyern Mesh Chrome 19" wheels, 15% F1 tint, LeatherZ weighted shift knob, body color reflectors, Matte black grill with Montego surround, middle lower grill removed, left and right lower grills painted black.
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