soo… this past few days i was looking for lease BMW.
All these good deals are based on california.
Q1) Is theres something special there?
Does dealers get cars way cheaper or competition are super crazy?
Q2) Why dealers in Texas are so calm and not willing to negotiate…?
Q3) Will it be better lease the car with dealer in California and ship it to Texas?
heard the shipping cost is around $700~800
Q4) I feel like dealers would not like to lease the car out of state because they have to provide extra documents… is theres anyone out of state lease friendly dealer in this forum?
It’s due to competition. Texas is also one of the least lease friendly states, you get taxed on the full price of the vehicle so probably not a good idea there.
One of the reasons california gets better deals than a lot of other states is due to competition as well, There are 40 million people living there so the target market for leasing is much larger, more competition is better for the consumer, the tax reason is obvious, but if you get the same pre tax deal in texas as any other state then I think you did well. Another point of emphasis I would say is look at the cost of real estate in texas vs california, sales tax is also brutal in cali, and don’t even go into income tax. My point is you have to pony up one way or another. Just find something you are in a comfortable range with and do your homework.
Part of it is that there is just SO much car buying going on dealers have to fight each other for business. Also all the volume means they can afford to make less profit on each car. I live in Santa Monica and there are at least 5 BMW dealers within a 30 minute drive. They all sell the same thing so they must have competitive pricing.
I haven’t looked at actual data but based on driving around here versus other places it definitely seems like people are spending more of their income on cars versus other places. The weather is good so you can get by with a regular car year round, having a nice car is a cultural thing, and because you get taxed on the lease cost and not vehicle sale price people have more incentive to lease.
One way to overcome it by pushing dealer to extend tax credit (you have to play the dealer very strategically).
IMO, Texas dealership landscape is very consolidated compare to CA, [suspecting] due to business friendly attitude in TX. Lexus, MB, BMW and Inifiniti in DFW market is controlled by just 2 (or 3 at max) parent companies. Reduced competition results in unfavorable deal.
I leased only because I was able to get tax credit from Lexus dealer.
It is more challenging to lease in Texas, due to the sales tax being on the whole vehicle cost, and the lack of competition particularly among the higher end dealers. Some of that is mitigated with sales tax credits though.
It really depends what you’re trying to lease though. What model BMW were you trying to lease?
We have quite a few Texas hackrs here and a lot good info so if you elaborate on what you’re looking for chances are we can help. Be quick though as you only have until March 1st to lease a 2018 BMW, after that you’re going to pay even more for a 2019.
was really wanted to get genesis g80, and contacted every single genesis in texas… and they might have tax credit offer in april they “assume”. but don’t wanna wait… so going for bmw.
With you being in Texas and looking at BMWs have you looked into going for a hybrid and using Owners Choice? Owners Choice is a special financial product from BMW/Mini for people in Texas, and is basically a lease but puts the vehicle in your name. There are some crazy loop holes with it though which mean potentially you can get dealer discount, vehicle incentives, sales tax credits, Fed rebates, State rebates which can add up to deals that are the best in the country for BMW/Mini hybrids/EVs.
Looking at the numbers you could get an incredible hack on a 2018 330e with Owners Choice. You could combine the $7k dealer incentive, $4001 Fed rebate, $2500 State rebate, $500 BMWCCA rebate, plus dealer discount, plus tax credits potentially:
That’s just spitballing numbers, but after the rebates you could be as low as $200p/m with zero down payment on a brand new $50k BMW. You probably only have until March 1st to secure a deal like this on 2018’s though.
Tags are awful in Colorado too, 2% of the value of the car, and you don’t know exactly what it is until you go into pay, 2 months after you buy the car.
Seems like the Texas tax situation is high and anti-lease friendly. So they’re going to tax the entire sales price of the car when you lease there, than when the dealer sells the car after 2-3 years, the new buyer gets taxed again on the market price of that same car? Texas would seem to be collecting that tax twice on the same vehicle.
In CA unless I’m wrong, tax gets paid on the leased portion, than when someone buys the car they get taxed the market price so there’s no overlap of taxation.
