Located in OH, working on a deal with a dealership in VA.
MF is marked up. Delta between base MF and marked up MF is $915, or about 2% of MSRP. So it ends up being an effective pre-incentive discount of ≈3%. Not great, but in this market???
Maybe some more meat on the table. TBD. This market is crazy. This is literally the first dealer who didn’t just give me a hard pass coming in with a sub-MSRP (been starting my ask at dealer cost, which is usually around 4% off) and a base MF offer.
My bigger question is the calculation of fees and taxes on an out-of-state deal. I’ve never done this, so not sure how it should be done.
The dealer has everything structured based on their local tax rates and laws (i.e. tax on monthly lease payment). If I take possession, am I then responsible for paying to OH the difference in tax collected by the dealer vs OH tax law (i.e. tax on entire lease payment up front)?
What about registration, etc. - how is that handled with an out-of-state deal? When buying a car in OH, dealer handles registration, so they give me a 30 day temp tag to drive on and then the permanent plate will arrive in the mail. How is this handled with an out-of-state sale?
I do not know Ohio tax on leases, but in VA, the tax is calculated on total price at 4.15%. For example, a sale price of $20,000 would be tax of $830 that would either be rolled into the lease or paid upfront.
That being said, VA code may have a section that would allow the dealer to not charge you the sales tax, and you would have to pay it when registering the vehicle in Ohio:
VA code 58.1-2403. Exemptions:
No tax shall be imposed as provided in § 58.1-2402 if the vehicle is:
Purchased in the Commonwealth by a nonresident and a Virginia title is issued for the sole purpose of recording a lien against the vehicle if the vehicle will be registered in a state other than Virginia;
If the above is true,you would have to dig into OH DMV/tax rules for your answer. If VA dealer charges the tax, I would think you would be exempt from OH tax.
I am not a professional so all this is speculatory… good luck
This can and will vary by dealer with regards to how involved they get in out-of-state registrations. I’ve seen it on both ends of the spectrum, you just have to talk to the dealer to see.
I’m in NC, my last 2 leases have been from out of state. The first one (Georgia) the dealer still handled everything, no different than if I had leased the car here locally.
The most recent one (Illinois) the dealer was obviously not as familiar with NC DMV processes, so they made sure the correct NC tax was calculated in the deal but then it was on me to go to the NC DMV once back home to register it.
Just make sure you do your homework and know what your local tax situation is before working a deal. In most all cases you will only pay one state tax based on where you register the car, so you won’t have to pay VA taxes then get a refund for OH taxes or vice versa, etc.; you will just pay tax to OH.
If you’re serious about the car and in agreement on all the other terms (selling price, MF, incentives, etc.) then tell the dealer to re-run the numbers using the correct OH tax (it may take a day or two as the finance manager will have to do some research).
In theory, they should be able to charge OH tax at the point of sale through the finance office’s dealer management system. I had leased a BMW in VA a couple cars ago, and my PA sales tax was handled through the sale.
OH taxes the entire lease upfront, similar to NY, with the option to roll the tax in and pay it monthly. Sales tax rates vary by county.
Similar to what’s noted in the post above me, I’ve also had this handled both ways. I’m in PA, and a car I bought in OH was titled to OH, sent into BMW to fund the loan, then a POA and OH title were sent to me in the mail. I had to go to the DMV and surrender the documents to PA in order to get the title transferred to PA from OH, and get the car registered and a plate handed to me once I paid the DMV fees to do so at the counter.
I bought one car in VA where the finance office handled all the back end title and registration work with an out of state title service, and my PA plate and registration was mailed to me in the mail, with nothing to do on my end outside of paying the dealership their fee to handle this for me. What that fee was at this point, I couldn’t tell you outside of it being a nominal fee on top of my normal PA title and registration fees the dealer charged.
At the end of the day, you’ll need to ask the dealership how they handle title and registration work in order to figure out what (if anything) you’ll need to do.
Thanks all for the feedback. It sounds like we have a couple options on how to handle the tax and reg, so I’ll have to talk to the sales manager more about that once we get closer to inking a deal.
Also, sorry for not mentioning the model. It’s an i3.
As far as comparing to shared deals and marketplace, it’s definitely not great compared to a year ago this time, but not much is right now. I’m not seeing many recent i3 deals that are replicable in my region. I did reach out to two different brokers, one was sold out of I3s and the other never responded. I haven’t seen any i3s listed recently in the marketplace that ship Nationwide or are within my market.
So, to sum it up. I don’t think the deal is great, historically, for this model, and I’m not seeing a whole lot of replicable deals for these things lately. Hence the deal check question. I think its pretty decent for this market. It’s a work in progress, so there may be a little more room with the marked up MF to negotiate, but not sure how much flex they’ll have on that.
I’m not in a rush to buy, I own my current vehicle outright. I did recently test drive an i3, and would love to get into one. For this particular model, I’m not really seeing how this gets better in the next couple of months, given production in the US is ending this month. I think we’re still quite a ways off from seeing the market relax back to you pre-chip shortage levels, and with I3 inventory dwindling I don’t see much relief on the horizon. Certainly wish I would have got into one of these things a year ago, but them’s the breaks.
You’re kind of in a pickle here. If you’re not in a rush to buy, and it were another model BMW, I’d wait it out as long as you can, as new car inventories will eventually stabilize. That being said, with the i3 being killed off this model year, and production closing out at the end of this month, you might not really get a chance to wait too long.
Deal check: Planning to lease Mazda cx-5 2021 AWD -SV preferred package 12k/36 months. this is my first time leasing a car and I tried to learn as much as possible from this forum. and I have a current offer for 420$ per month. Does this look like a decent offer ? Thanks in advance for all the feedback
i have added the same numbers in the lease calculator and got a score of 7.1. wanted to get everyone’s thoughtsLeasehackr caluclator