Leasing in Texas

Hey Hackrs,

I’ve been lurking for a while but I think I am ready to take the lease plunge. I’m new to Texas, the car I’m looking at is a 2016 BMW 330e, 12k miles, 24-36 months. I haven’t gotten any dealer quotes yet. My question is with the tax laws here concerning leasing a car (taxes due upfront on full “sales” price of the car, kind of ridiculous), does it even make sense to lease a car in Texas, especially a short term lease? It seems to defeat the whole purpose.

You will still be paying less than financing the same car. What choice do you have if you need a car? So leasing does make sense, even with taxes on full price. When it does not makes sense to me - is leasing a $60K and up car. I’m in the same boat, BTW. And I also pay property tax on my cars.

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Yeah, I saw that some municipalities tax personal use leased vehicles, thankfully I am not in one of them. Before we moved here everyone kept saying how lucky we were to not pay state income tax, they sure get it one way or another.

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I’m in VA, but when my friend moved to Texas he was up to the same surprise as you are. They always get you on something else.

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well just so you know the dealers have over pays on taxes on these cars and have sort of a slush fund of sorts… the get the taxes on the full price then the lease is up and they resell the car. that difference the finance company gives the dealer a credit. so if you negotiate well you can get them to use that against your taxes. I leased my 2016 Maserati and psid ZERO on an 80k carl…

What are you saying? Can you translate? Taxes are not optional and go to the state through the financing bank, if rolled into lease. Dealer pays them directly to the state when collected upfront, I’d think. No different from financing when tax is collected on the full price,