I am guessing this is a lawyerly way of stopping sales without outright saying they are stopping sales.
So for those of us in CA, can we still payoff the car and then sell it to 3rd party? I know I’ve asked this before, but wonder if anyone has any experience to share.
Search the forum for 10-day sales tax exemption in CA
Lessee buy out should be ok. It is a contractual right . Resell happens after which BMW has nothing to do with at that point. Good for Cali saving us from double taxation.
Does this apply to finance?
I haven’t read through this but it doesn’t look like a very easy process to avoid the tax in CA.
Yes
Well good thing my local bmw dealer is willing to take my car!
Not at all. Practically you are applying for one time reseller permit .
Sorry guys. Late to the party. Lol. Looks like it’s already been disclosed.
Watch what happens to early lease buyout quotes for BMWs over the next few weeks…
Wow For finance as well? So we’ll need to refi with a credit union first then sell to 3rd party?
Man talk about threading the needle lol. Perfect timing!
Pardon my ignorance, but what part of the language in the notice would make this apply to a financed car? The word “Retail”? If someone financed a car, then it’s theirs to sell for however much they want as long as they pay off the balance of their loan, right? As a practical matter, why would BMW care who is buying the car? It’s not like they can inflate the loan balance for a third party dealer buyout. It’s quite different than a buyout of a lease, I think.
That’s what made me think it is also for sales if financed through BMW FS.
I definitely don’t claim to be the expert on the matter but wanted to share as much info as I had
Dude I know!
Bubble guts all weekend lol
If this is the case for financed cars then it’s like when you sell you house the bank says your loan balance is “market rate”.
In what way? The loan balance is the loan balance. Sales tax has already been paid. You need to pay off the lien obviously but you can sell the car you own to anyone.
Having a dealer pay off FS directly was only beneficial to lessees because that method avoided sales tax on the buyout.
No one should even call FS for a financed car except to pay off the lien and pay for expedited title if they want to.
The language on the notice made me think BMW did this on the request of their dealer network. My guess is that dealers complained about lack of new car allocation and BMW ( not being able to increase production easily ) offered this as an alternative solution: “Hey dealers , we won’t be able to give you more new cars but we have a solution for you to get a lot more used bmws”
Because cancelling customer orders to reprice them wasn’t enough for some dealers in June…