Texas sales tax rules suck for leasing unless tax credits are being offered. It is always challenging to find which manufacturers and models have tax credits available. Some dealers are very secretive about this. Wish there was an easy way to find out. Not sure but maybe a dedicated post where all TX hackers can update tax credit info would help.
We actively post deals with lender tax credits on our thread.
You are over complicating it.
Simply ask dealer for tax credit. I am guessing 95 out of 100 will comply. I have yet to be denied over past 5 year, 10+ brand at 25+ dealerships.
TX is the best state to lease for me. Follow the rule and you will agree with me.
I would have to agree that TX is a great place to lease. I have been leasing for more than 15 years now and was able to secure several great deals. Sometimes even without tax credits. Recently I have been running in to issues where dealers state tax credits are not available. This would be good info to have during the preliminary research. Sometimes I am looking for a specific vehicle, but most of the time I am shopping deals.
Yes and I appreciate that. Would be good to see on other makes beyond BMW.
Credit comes from underwriter, not necessarily from dealer itself. Usually front line reps either don’t know or don’t wanna follow up. Finance guy is your source of truth.
Another trick to gauge tax credit availability is during early stage in your research, I would inquire multiple dealers (of same brand) about sales tax credit. I have yet to be shut down from all dealers.
But if for someone reason you are stuck on certain stock# and dealer is not offering upfront, I usually negotiate regardless of it, until final counter offer. I make it contingent on dealer securing credit from lender. It worked in case of Lexus(GX MY19) and even Nissan(Leaf MY23) recently.
Happy hunting!
Can out of state dealer apply these credits?
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Im in Texas and want to take over a lease
If its another Texas lease i assume the taxes are alteady paid ? What if I buy from another staye ?
If in state stays the same if from out of state potentially have to pay state tax on FMV.
Hmmm
It seems a couple states like NJ and NY charge tax up front like TX
I guess those payments would remain the same ?
If a lease from California includes ,$50 monthly tax i would subtract that tax and replace it with 6.25% of fair market value of the auto on a TX acquisition?
They charge tax on the full lease value upfront. TX charges tax on the full vehicle value upfront. Thats a lot more tax.
So those states charge for example 40% of a ,50k auto at 8% = $1600 , TX charges 6.25% at 50k or $3125 . More than double
,However , TX would charge less on a used lease
40k at 6.25,% is still higher at ,$2500. In this case I would pay the $900 ,difference ,?
What do you mean used lease?
In my experience, I bring the lease vehicle out of state(relocating), they only charged me like $100, that’s it.
If you want to buy out then you’re truly double taxed.
you lease a 50k car, you pay 3125 upfront
you want to keep the car at lease end, and RV 30k, you pay ~1800 again
lol