Say you wanted to transfer a lease from somebody who lives in a state that taxes lease payments to a state that taxes the sale price of the vehicle (Maryland to be precise).
How does that work? Does the receiver have to pay taxes to their state all over again? Anybody know?
What @joeblogs said…why wouldn’t you just pick up the phone and ask them? Would’ve saved you 6 days of waiting for an answer from internet strangers who would probably guess.
I’m in FL and last year someone in NY wanted to assume a lease of mine through BMWFS. After doing the credit check and getting approved he found out that he would have to pay thousands in sales tax up front to get the car registered. Needless to say that lease transfer fell through. Found someone to take it over that lives in a state that taxes only on the monthly payment.
NY basically taxes the monthly payment upfront…unless the MF is sky high, it’s not very different from paying taxes monthly. Did the person not understand this?
Also, define “thousands”…because e.g. a $1,000 monthly payment with 18 months left in NY’s highest sales tax county will only trigger a tax bill of ~1,500
It was an M5 with an MSRP just shy of 120k and the payment was $12xx/month with 32 or so months remaining. Thousands was just shy of 4000. I didn’t believe it myself until he forwarded me the document showing the balance due and I confirmed with BMWFS.
The captive doesn’t necessarily know the tax laws of every state. I don’t know how VA works, i only know how NY works which was already discussed and for states that tax the monthly payment, you just get charged the new tax rate of where the car will be registered.
I don’t get some people…dude wants to buy a product for ~$42,000 but the sales tax of ~3,700 (which is a verifiable fact known from before) is a dealbreaker? After running your credit with the lessor…SMH