I heard about this. I question whether, from a legal perspective, BMW has the ability to alter the terms of the maintenance agreement (ie, the transferability of the agreement) after sale.
Fortunately, this issue doesn’t impact me at the moment. But if I were attempting to sell a car and the transferability of the maintenance was pulled out from under me, I would consider raising th issue.
@Hefnet BMW did not alter the terms after a sale. They announced the changes beforehand and any sale after July 1, 2014 would not transfer the maintenance program.
How would transferring to Virginia work (for tax purposes)? As I understand it, you pay the 4.15%, but on the whole price of the car, not the payment - so I couldn’t just take over your payment and add 4% to it for the tax. Anyone have any clue?
No, the key question that needs to be asked is if Virginia recognizes tax paid in another state. Then the tax is calculated at 4.15% times either the buy out or the vehicle value (not sure which but either way it’s a lot) if tax paid in the other state is recognized it is subtracted from the total. If not you owe the whole amount.
Virginia DOES recognize taxes paid in another state - at least for purchases. I bought my ML63 AMG in January and moved here a few months ago. I had to show proof that I paid the taxes on the car to PA and they didn’t make me pay here.
I think it’d be pretty confusing to go from a state that charges tax on the actual payments to a state that charges a lump sum based on the total value of the car at the beginning…and google is no help for this one
On the purchase you actually paid more in PA, so VA could not charge you. On a lease it might be a different story, but still not a big difference considering VA tax is 4.15%, which is lower than most states.
Right, but my point is what if I leased a car in PA, that pays a tax on the lease payment. Say the payment on a $10,000 car is $100 with a 10% tax. After six months, I would have paid $60 in taxes.
If I had leased the car in VA, that pays 4.15% on the total value of the car up front, my tax burden would be $415 up front.
Are you saying that you think I could deduct $60 from the $415 = $355, and that would be my total tax burden for the remainder of the lease?
This number obviously gets very high if you lease a $150k car, as the tax burden here in VA would be $6,200.
No idea what VA would do, but here is an example, which I gave before.
$50K sale price, 50% RV
$2,075 VA tax at 4.15% on full price
$2,187 NY tax at 8.75% on rental
It depends on the state. Md dc and aparently pa it does but not all states. I don’t know the list though.
Is this vehicle still available? I’m still interested.
Bump. I’d actually think I would take this. We are both in Atlanta and I’m in the i8 market.
Deleted […]
First off you need to register as a dealer/broker but more importantly this deal seems meh at best, and you tried to slide it into another thread where it clearly doesn’t belong.