Effectively thatās how it works out. In reality, itās the bank paying the tax up front, but it would feel like that.
got itā¦ so effectively next person ends up paying my rolled in taxes + their own taxes on top? interesting
Iām not entirely sure what happens if someone in NY takes over a NY lease as far as taxes go.
1 Like
You sure your docs fees are correct? Seems pretty low for a NJ/PA dealer.
Just went through this with my swap for NY to NY, transferee pays the tax on the monthly payment even though taxes may be capitalized in the monthly payment. Tax is essentially double-taxed at this point in NY.
1 Like
Come on, you know I wrote this up last year. 
A transfer is considered a separate and distinct sale by NY, end of story.
2 Likes
You might be better off swapping into a lease that has 7-12 months left.
Thereās no guarantee BMWFS will still allow transfers in a year
Yep agreed - following the transfers page but havenāt found anything matching my criteria just yetā¦ Honestly the flexibility is what Iām looking for / what I need right now, (and the only thing preventing me from being a proud Volvo āownerā (my favorite rental cars for the past 1-2 years).
Agreed it may change at any given point (like MBFS and others did), but I just havenāt found the right deal on transfers.
Update - i donāt think they know what theyāre doingā¦ (or maybe I donāt know what Iām doing 
)
They sent me a quote with ārebatesā for purchase, and then sent me an even lower quote:
- MSRP: $51,xxx
- Total Dealer Savings: -$12,xxx
- Total: $38,xxx before taxes & tags
But then they said this was only for purchasing, not for leasing:
This price does not have any incentives included. My managers ran this with dealer discounts only to get to your requested price. Because of this it would financed through a bank, not BMW financial. If you are looking to lease this vehicle we would have to run a different scenario through BMW financial.
Deal check
MSRP: 48,760
Sales price: 36,500 (25.2% discount includes 2,000 fleet discount which they included in overall discounts instead of in incentives)
discount: 25.2%
750 lease cash
MF: 0.00102 (they agreed to .00092 but then said it got marked up because of my credit (āeliteā not āsuper eliteā, which is strange because I have a 750+).
Months/miles: 36/10k
Car has ~3800 miles
acq fee: 699
dealer fees 799
registration 450 (they said if these are lower than 450 theyāll refund the rest)
tax: NY 8.625%
Iām paying tax down, and getting the rest capitalized, see calculator. Any thoughts?
Color I wanted, and with convenience package and virtual cockpit which I was looking for. Wouldāve preferred gray with mocha and premium, or the rumored x5 for $450 a month, but you canāt have it all
edit: updated acq fee
Note, for ease the calc is showing it all capitalized. Make tax = 0 to see my actual monthly and whateverā¦ Calc link: leasehackr.com/calculator?make=BMW&miles=10000&msd=0&msrp=48765&sales_price=36500&months=36&mf=.00102&dp=0&dealer_fee=799&acq_fee=925&taxed_inc=750&untaxed_inc=0&rebate=0&resP=58®_fee=450&sales_tax=8.625&demo_mileage=3800&memo=make%20tax%20%3D%200%20to%20see%20my%20actual%20monthly%20and%20stuff%20(chose%20to%20pay%20tax%20up%20front).%20&zero_driveoff=true&totalLeaseTax_radio=true&dealerFee_check=false&govFee_check=false
We agreed on 0.00092 before running my credit. Now theyāre trying to mark it up to .0012 claiming that I havenāt leased before. Iāve got a 750-790 but he claims Iām āeliteā not āsuper eliteā.
Any thoughts here? Iāve read the credit pages but not sure if I have a case to push back on here. .00092 was annoying but okay given discount. 0.0012 is actually bothering me because I feel theyāre just trying to add money back into the deal for themselves.
Did they provide you, in writing, a disclosure stating what cost increase was being done because of your credit or did they just verbally say āhey, we are bumping your price, here is a new quote?ā
They are FedEx sending me the papers with the updated MF. Not sure whether it will be disclosed there. So far only verbally let me know it was raised due to the āelite not super elite creditā
Is that something I should ask for in writing? Does that make a difference?
The truth in lending act requires them to notify you of any adverse financial actions taken as a result of your credit. If that isnāt provided, itās be a good sign that the credit market isnāt required by the bank.
Good deal. At $392 a month which would have been whats in the title if you rolled it all in roughly is a very good deal.
I am paying $437/ month with tax included (NJ), and did sign and drive in May of 2020. MSRP on my M sport was just under $54K.
The truth in lending act requires them to notify you of any adverse financial actions taken as a result of your credit.
He said heās never had to provide a document to account for BMWFSās credit decisions. Says MF mark up from .00082 to .00102 is due to my auto-adjusted credit score. Most of the bureaus show me at 750-780, he says my auto-adjusted is in the 720s [i donāt recall exact number he said] because I havenāt had car loan/lease beforeā¦ ??? He said heāll check with BMWFS to see what he can provide me with.
He said for Tier A credit it needs to be 740+ (which differs from the 720 that Iāve seen on this forum and others as āTier Aā).
A marked up MF due to non-existent car loan history is totally reasonable and to be expected, so no big surprise there.
Iām searching for the verbiage on the disclosure requirements.
edit: I was incorrect, itās not the Truth in lending act that requires disclosures, itās the Fair Credit Reporting Act that requires disclosure when a higher rate is given based on credit worthiness. To be fair, this would be required as part of the contract (and most dealers provide credit disclosures to everyone, even though they arenāt required).
2 Likes
Thanks for finding that, I was looking at the TILA act and didnāt see anything relevant on disclosuresā¦
Yeah, I guess just surprised MF was marked up 20 points. Thought 10 points with high 700s score was enough.
At the end of the day I guess itās a good deal, just annoying to have them adjust after I was cool with numbers
Did you agree to numbers before your credit was run? Yes.
If youāre annoyed about numbers being agreed to based on top tier credit, then changing after you submit credit, thats not on them. Thatās based on your credit and your credit alone.
Dealers want to put deals together. If the bank says, ābump,ā they bump and try to keep the deal together. The bank needs to cover themselves for higher risk buyers.
The dealer youāre working with has some very good people there. Its time to shit or get off the pot. If your credit doesnāt get you top tier, it is what it is. The discount is very strong and youre not going to see it again for some time.
Youāve been working on this for how long now? Itās time to just do the deal.
Sometimes you need to know when its time to stop pushing for more, more, more.
3 Likes
Yeah all fair, I am going ahead with this unless there are other things that pop up. Iām not looking for āmore more moreā, Iāve seen Plenty of posts where hackers are like āwell nice discount but you got hit on the MF so that kind of negates itā, trying not to be that person. Iāve only been working on this deal since ~12/26, and Iāve moved quickly provided paperwork docs and whatnot, meanwhile they delayed stuff and ended up having my docs sent to the wrong place.
Iām sure you can figure what dealer Iām working with, and Iām sure they have very good people working there, but my experience hasnāt been all that āgreatā. I get itās a busy time and Iām āonlyā getting a 330, but itād be nice if they got stuff done right in the timeframe thatās to be expected.
My credit is fine, my adjusted credit apparently is not, thatās not really foreseeable given that I donāt know what they āadjustā and how much each factor weighs. Apparently paying everything on time, having lots of credit available, low debt to income, and all the rest of it is not enough.
1 Like