Quote:
Originally Posted by JeremyDFW
In certain states, sales tax is paid on the full price of the automobile at the beginning of the lease - Texas (my state) is one of these. If you decide to purchase the vehicle at the end of the lease, the state then taxes you again on the residual purchase price. For this reason, BMW Select is an option for those that don't want the "double taxation" on the residual purchase price. This happened on my M3, and one reason I won't lease another vehicle if there's a chance I will keep it...
PenFed has a program "Payment Saver" that is an option - they take into consideration the estimated residuals on the vehicle, then offer the balloon payment at the end. Their finance rates are usually very competitive, and I'd check them out if you are looking at a longer term purchase.
|
Correct, with the BMW Select/Owners Choice program the car is titled in your name instead of BMWFS. As a result, should you choose to purchase the car after loan term you won't be taxed on the buyout.
The only drawback is that the Select/Owners Choice program does not include gap insurance unlike a standard lease. So if you car were to get totaled during the term and you were in a negative equity situation (you owe more that the insurance payout) you'd be responsible for paying the difference. Your insurance may offer gap coverage.
Quote:
Originally Posted by ShiftingG82
No matter the option I plan to keep the car for the long term 7+ years.
|
If you know you're going to keep the car for 7 years, why even consider leasing? Finance rates are lower than lease rates.