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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.
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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.
Keep in mind though that sales taxes on autos are based on where you live, not where you purchase.
thinking 330i with m sports package.
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.
Here’s an example with a 2019 Mini Countryman with Owners Choice: Trophy Garage [ Photos ]
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.
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that’s something really sounds new to me. never knew this. will definitely do some research on it. thanks
Some things are cheaper, other things aren’t. Annual tag registration fees are killer in CA.
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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.
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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.
The OEM incentive doesn’t already include the federal and they stack?
we don’t pay income tax tho… xD
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Every state gets you some way or another, Texas has no state income tax, but then they get you on property tax. I don’t care where you live, the government is going to get their cut
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That’s the crazy thing, they do stack. I’m amazed BMW haven’t closed the loop hole, but then Owners Choice very rarely gets pushed by dealers so it’s probably an anomaly that doesn’t get spotted. I try and flag it up to people here as often as possible as it’s an easy way to a great deal on a BMW or Mini.
There are a couple of caveats:
- The interest rate is always ~1% higher on Owners Choice, but this is a small issue when it’s used with EVs or hybrids.
- The Fed and State rebates are related to your income tax filing so you don’t get the benefit right away.
The other benefit, and this was why Owners Choice was originally created, is if you choose to buy the vehicle at the end of the lease you don’t pay sales tax again on it as it’s already in your name.
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Currently At the biggest bmw in Dallas which is bmw of Dallas.
The sales said bmw no longer offers owners choice.
So I went to gm to talk to him…
He said
BMW is about to close owners choice option…
Idk if this is true or not… but couldn’t get owners choice as a option.
I assumed op would know tax rates don’t change, I simply meant msrp and sales prices differences.
I’ve had my emails ignored by Dallas BMW on at least 2 occasions, even though they have an Internet Sales team and I was interested in an X5M they had so I wouldn’t expect a good experience with them. They’re also an Autonation dealer so they’re very good at screwing people over. You need to know your numbers inside out or they’ll add you to their list.
I think there’s at least $6k in incentives, Edmunds says $7k so they’re not even giving you all of the manufacturer incentives.
Find another dealer via email that will do Owners Choice with all the other details I listed earlier. I would recommend Tyler BMW, they tend to be more open about doing deals.
autonation is junk, got garbage deals when shopping the f150 and same for the hellcat.
That quote is a crime…
Avoid BMW of Dallas, try get quote from BMW of San Antonio, or BMW of Arlington.