[Need recommendation] Lease from out of state dealer or lease in state and ship the car?

Situation:

  • Have a family member living in CA and will be moving to NJ
  • Currently have no car
  • When she moved to NJ, she needs a car soon for her job

Option 1: Lease a car in CA and ship the car to NJ

  • PRO: normal leasing process - can check out the car, test drive, negotiation is easier since she can be at the dealership on the same day, etc.
  • CONS: expensive to ship the car, no guarantee there’s no damage during shipping

Option 2: Deal with the dealer in NJ via email / phone, maybe put a small deposit to hold the car (?)

Any advise?

EDIT: hmm… seems that aside from the cost of the car, there are other factors that need to be considered, such as:

  • dealer in NJ may not allow car buyer with CA driver license?
  • buying a car in CA means paying CA tax and registration, which means she’ll have to pay another registration in NJ?
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Which one results in a net lower cost?

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We don’t have a number yet, because the shipping cost seems to varies but also not sure if dealer is willing to deal with out-of-state buyer.

We shipped a car from California to Ohio when we moved, and when the car arrived it looked like it had been driven 10,000 miles by someone wearing a bee keeping suit that had been immersed in transmission fluid.

The arrival date also gets less predictable the longer the shipping route.

California isn’t Venezuela (at least not yet).

Not necessarily, if you ship it immediately.

If you don’t… well… I don’t know what registration fees look like in NJ, but registration on my car in CA costs 10x as much as the car I have in Ohio, and the latter is newer and more expensive.

That’s not hyperbole, and without the documents in front of me, I believe I may have minimized the difference.

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Wait and just lease in NJ.

Shipping cross country is about $1500 .

Taxes in CA are about 10% whereas in NJ it’s 6.625%

Registration in CA could run you close to $1K whereas in NJ is about $250-$350. Also doesn’t make sense to pay CA registration and then pay the NJ registration again when you move there

No brainer.

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Figure out what you want to get then spend the money for a broker. It’ll get you good deal with minimal hassle and then have it shipped to the new place.

Was there any physical damage to the car? Also, would you mind sharing the name of the moving company and how much did it cost?

Do you have recommendation on the shipping company? Just in case.

No physical damage, but it was so disgusting inside we had to have the interior professionally cleaned when it arrived. The outside was dirty too, but a car wash upon arrival was expected.

My data point is just shy of 7 years old and I’m working from memory, but I believe it was in the $1,400 range.

I’d have to dig for the company info. It was a shipping broker that my brother (dealer) used from time to time.

Oh, sorry, I misread your post. I thought it was just the outside that’s dirty (which is expected).

Kinda surprising the inside get so dirty that you have to get it professionally cleaned!

If you still remember the name of the moving company (DM is fine), that’ll be helpful so I can avoid it.

There are almost no pros here. Test drive the car locally, negotiate remotely and lease/pick up in NJ.

Nice part is we turned in the cleaning receipt as a moving expense and got reimbursed (my spouse’s new employer paid for our relo).

I’ll see if we still have the relocation file (I really will), but I’m not optimistic. We don’t even have that #$&^#%& Prius any more. :smiley:

Agreed.

Option 1 will be more of a backup (just in case). Her worries is that the shortage is going to get more compounded in the near future and aside from pricing, the car she wants may not be in stock by the time she move.

You’re right on CA registration costs, but isn’t one of those not a lease? I pay less in lease tax in SoCal than I did in Ohio

@HubbaHubba We would need a lot more information, but we can help do the math. What’s the comparable lease in both places (and remember May programs won’t be June programs).

I did this in 2013: as I was moving east to west, I leased a car in Delaware and shipped it to CA. I did all the math and it was cheaper.

I will say, while it’s easier to go from Ca to another state, avoid reregistering if you can.

And remember if you are looking at EVs, while CA has state tax credits now and NJ doesn’t, NJ has no sales tax.

I hope she isn’t picky, and nothing built in Japan is on the short list.

Oh, I didn’t know that. So you’re saying that cars like Toyota and Honda are not affected with the shortage compared to European brands?

No, the Japanese have been hit the hardest since most of their chips burnt up in a fire.

If you want a brand with the least amount of direct chip shortage problems, Hyundai is where to look.

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Right, I bought one (CA) and leased the other (OH).

What lease taxes are you talking about? Sales tax?

This is what registration looks like.

2019 750i - OH - leased (I believe this is the going rate for any passenger car in my city/county, purchased or leased):

https://i.imgur.com/MnCJdrc.png

2018 M550i - CA - purchased (are you saying this would be lower if I’d leased the same car?). This cost varies with the value of the vehicle, and decreases each year (until they jack the rate up for everyone again).

https://i.imgur.com/fxm8N6F.png

Not trying to drag this off topic, but for me, I paid more in taxes for the same lease in Ohio. Yes, the registration in CA costs more (and can’t be prorated).

I imagine if the 5 series was a lease with a comparable payment, depending what your lease tax rate is (us Californians know it varies by county), it might also be the same or less. Everywhere I have ever lived in this country, they all take their “fair share”, and it’s roughly the same (since I ran my business in VA/OH/CA, and these were all costs I ran through, I had expenses and taxes broken out, year over year).