2021 BMW X7 Lease - Michigan vs. New York

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I think this is a potentially simple (ie. dumb) question but I haven’t been able to find a definitive answer and I figured someone may be able to point me in the right direction. I am moving from NY/CT area to Michigan and have the ability to lease the car from either of the 3 locations.

Is there a material difference in leasing costs between NYC and Michigan? I believe the tax upfront is the main impediment but would it be a bad choice to lease in NY? Are their other considerations that go into the cost differentials (either positive or negative) or should I expect roughly the same cost / MSRP / discounts?

It appears as though inventory is a bit tough to come by (an understatement).

No, you shouldn’t expect anywhere near the difference in discount in MI vs tri state area, especially currently.

The taxes are irrelevant. You are taxed based on your garaging address. You only have one drivers license so that is the address, until you officially change your residency and notify BMWFS. At that point your taxes will change according to the locality. You can’t just pay tax in whatever state you want to pay tax in (unless you have an LLC etc…).

Michigan may take into account the up front NY taxes paid and not charge additional sales tax. They did it on my VA lease transfer. Or not and you may pay another 6% on top of what you already pay…you will have to contact SOS to find out.

Best bet overall is to just not lease an X7 until the market normalizes. That cost savings will be far greater than the taxes.

Thank you. And agree with you on the conclusion but I may be forced into it. Curious what the discount differential is driven off of? Is it just as simple as more supply in the area?

Which makes the taxes quite relevant, doesn’t it? Depending on the payment, we are talking about potentially ~$4,000 in NY tax paid (more if it’s capitalized) … with no benefit to paying it if MI charges the OP again.

I’d look into waiting to lease it until you’re an MI resident for tax purposes. That way you are sure of being taxed only once.

Pick a dealer in NY/NJ/PA or IN/OH/Chicago if necessary but do it as a MI resident.

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My point was that he cannot choose which tax to pay like he implied in the OP…and either way the tax will pale in comparison to the cost of leasing now versus when supply catches up.

But if he is ‘forced’ into leasing an X7 it’ll just be another thread we are piling onto later on.

Michigan does not have the amount of BMW dealers that the NY/CT area has. There are probably 10 to 12 BMW dealers in the entire state and several of them are part of the same dealer family (ie. Erhard BMW). Michigan, particularly the Detroit area, does not have a lot of import dealers and because of how few of them there you are less likely to get a decent price. They don’t carry as large of inventories either.

I got my Infiniti from CT because the Michigan dealers would not even come close to the price i got. I tried hacking a xc90 in Michigan and dealers were saying the same thing because there are like 5 Volvo dealers in the state.

One thing to add - I was able to get VPP because Infiniti offers it to all MI resident in order to compete with all the big 3 employees who get employee pricing. Not sure if BMW does the same thing in MI or not.


Thank you… this was very helpful… looks like I will pause and just try and wait it out or find an alternative.

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