If you brought it in from out of state, welcome to CA. On the bright side, you get to pay that every year.
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$45000 bmw 5series. It is just a lease transfer. Something seems off. I thought the whole point of a lease takeover is not to pay so much out of pocket initially.
Seems totally normal for CA to me. Annual registration is generally 1-1.5% of market value. Then add in some transfer fees and all that jazz, and $600 is par for the course.
There is no 45K 5-series. 5-series start with 56K. Normally CA DMV is ~1.1-1.2% of MSRP so it makes sense
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Sounds like a great idea. You can then pay full sales tax on a lease.
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Welcome to CA. DMV fees are high and 600 is about right.
Just for argument’s sake…
If we take a hypothetical $50k car with a 50% RV on a 3 year lease, in Texas, you’d pay ~6% tax on the whole lease, so $3k.
In much of CA, you’ll pay ~10% tax on the depreciated value/rent charge/etc, so $2500 or so. Add in $1500ish in registration over 3 years, and it doesn’t take much for Texas registration amounts to make it a cheaper place to lease if you look at total lease cost.
Obviously, one could run actual numbers to get a more accurate picture.
Thanks for saying this. 6% tax on whole lease amount isnt that terrible compared to 10% on depreciation amount
It’s still worse, but it’s not THAT much worse, and a huge registration fee is just more taxes spread out annually.
Does TX not have annual registration fees? Every state I’ve lived in has some annual reg fees
Oh, I’m sure they probably do, but most states are a fraction of what CA is.
This is one of the dumbest threads on LHF…
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“Reg was paid in TX so why would I need to pay it in CA?”
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Couldn’t be bothered to google either an exact or ballpark number for CA reg.
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Doesn’t care about state income tax or COL, but the relative pittance of reg is such a hardship that I’ll move a couple thousand miles
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Sometimes being reminded of more ways you’re getting bent over can help bring some clarity.
Maybe but I doubt it in this case. Guaranteed the OP was unaware of TX’s lease taxation structure when they assumed it would be cheaper there.
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It’s all subjective. On my XC60, the registration renewal last month was $500. If it was $1000 and Texas was $0, I wouldn’t move.
When I lived in VA and paid the car tax, I still leased, just less expensive cars (I had an Accord I financed before the WRX and Mazda3). There are a lot of reasons to leave a state, or choose to move to another state, I don’t see how the cost of your car registration even makes the list.
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Sure, I just find it a bit amusing when people talk about how much more expensive leases in Texas are than in CA because of the sales tax. By the time you factor in the non-tax “taxes”, it really isn’t the different, it just isn’t all up front.
You have to hack it either way. A $300 payment on that car makes CA’s total state cut a lot lower than TX’s
OTOH tax credits make it vice versa.
But like @jeisensc said it’s way way down on the list of reasons to move
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Obviously, not all cases are the same. My wife’s XC90 is $618/mo after tax, so about $574 before taxes, which means we will $1584 in taxes for 36 months. The equivalent in TX would have been over $3600.
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I just did quick math, and assuming the registration in TX is $0, with CA reg and tax on my lease payment I am $1,024 less over 36 months living where I prefer. And I’ve never once made a joke about how Texas taxes the lease.