I am currently in the process of opening up my BMW M3 for lease assumption. I have gone through this process once before (in CA), and am running into a hiccup.
In CA, I was able to transfer just the base payment, and the new owner paid their local sales tax on the lease.
I am being told now, that my base payment will include my sales tax, EVEN for the new owner. Does anyone with IL leasing experience know this to be true? Seems odd that Illinois will receive tax revenue on this, even though the car will be transferred and operating in a new state.
This would mean the new lease owner will be paying my base rate, my tax, and whatever local tax they have.
Maybe these documents would help. I opted to spread the tax across the monthly payments, but never thought it would be “baked” in permanently, and not itemized.
I bet they are itemized somewhere on the contract.
Regardless, any +/- to the cap cost is permanent, whether it’s any negative equity or taxes to the + or a whole stack of rebates to the -
That’s how upfront taxes work; they are taken on day 1 and usually gone forever regardless of what happens to the car later, whether it’s totaled or anything else.
Coincidence that the difference between sales price and gross cap cost is almost exactly the same amount (off by $.25) as the tax + acq fee? I think not.
Yep, news to me that taxes were due up front here. I guess my simple mind just figured since I’m paying them “monthly”, that it would be itemized. Guess I ruled out the fact that a dealer would be fine financing that amount and paying it up front for me.
Thanks for your help, just going to relist my car at the appropriate monthly, since the base is $1,040.95 (including my sales tax).
