I am interested in taking over an Escalade/Denali lease but every nice deal is in another state than I live in. Why don’t they let you take over a lease from another state in which the vehicle is registered? What does that have to do with lease qualifications??? Tried asking the genius’ who answer the phone at GM, they have no clue. They just say @ that’s the policy". Smh. Thanks.
Tax complexity variance from state to state?
Shouldn’t matter since the current lessee either paid the taxes upfront already, or rolled them into the payments. Every other car co allows swaps in different states except GM. So frustrating.
It probably makes it easier for registration and such too. It just removes complexities for them so I don’t blame them
So what happens if the lease is signed in a monthly lease tax state (like NC) and the person who wants to take over the lease is in a tax the entire amount state (VA or MD)? Does the lessor change the payment to accommodate the tax burden in the new state?
Not sure, but I sold my Mercedes ML 350 years ago to someone in NYC and I live in Nj and it was no issue. Not a thing changes on the term of the lease.
@Pete_23 the person in NY who took over your car must have ended up with a letter from the state for a lump sum payment of the total tax on the outstanding payments of that lease. You would have never known about it because he would have gotten it after the assumption and directly to him from the state.
That’s interesting. I wonder if that is disclosed anywhere in the Lease transfer paperwork? So let’s say both states have the same tax, and the taxes ARE included in the payment, theoretically, the new lessee would not owe a lump sum right?
If both states have tax in the payment then no lump sum is due. They will adjust the payment according to the tax percentage of the person taking over the lease so new monthly payment might be slightly different as it is calculated base payment + tax so base payment is the same but tax changes slightly.
@OchoChino can speak more about lump sum taxes when transferring a lease to NYC as he just did it.
Interesting, thanks.
Hey,
Just as a quick insight and given my recent experience, NY will charge taxes up front as opposed to having it rolled into your monthly.
Basically, how it works is, the total amount you’ll be paying after your lease assumptions (i.e., $400.00/month for 23 months), they’ll take the total amount from that and take the designated tax (8.875%) in my case and had charged me $940.00 in total.
Everyone has their preferences, but more and more, I’m glad I got to pay for the taxes upfront but I feel defeats the purpose of assuming a lease because I figured, someone had already paid their taxes for the car, why pay again? (Applies only to states that require taxes paid upfront).
If I was to transfer my car to someone else here residing in NYC, they would have to pay the taxes again.
Regards,
Jay
@OchoChino …the point of lease assumption is:
- get into a short term lease if you don’t want to commit to a 3 yr lease
- get into a lease at an attractive payment without putting down any large cap cost money (potentially at zero out of pocket expense if you find the original leasee is desperate to get out quickly and willing to pay the transfer cost).
No 2 is where you where at. Somebody put a large sum down to get to your payment if you remember and that’s what made you want to pull the trigger.
The fact that you had to pay all the taxes as a lump sum vs paying remaining payments with tax included is the same, either way you pay for the taxes. In your case it just hurt a bit because it appears nobody from the leasing company told you that you were due a lump sum payment.
Which brings me to my question: what it ever disclosed to you? Im wondering if BMW takes the position of “you should know yourself because it’s state law and has nothing to do with us” or if they showed it to you prior to you signing the final transfer papers. I’m really curious to know, I sure didn’t know but then again i don’t live in NY.
At the time of the lease assumption, I assumed that as well.
I thought I could avoid paying a large down payment and benefit a low monthly payment, as well as getting into a short term lease because we both hate long-term commitments. 
But yes, I wasn’t aware of the expense of having to pay taxes upfront in a lump sum, as no one had explained to me. Not the leasee nor BMWFS. If knowing about it upfront, I would’ve definitely tried to negotiate further, or even bother trying to get the leasee to assist a little bit more in the whole process.
Location plays a BIG role when it comes to lease assumptions.
Knowing if you reside in NYC, you’d have to consider the lump tax they charge you upfront, no matter where the vehicle is originally located. You’re less likely to take a hit if the remaining months are lower.
Actually, thinking about it, BMWFS doesn’t disclose the taxes in states because it’s not in their jurisdiction. Simply put, they assume for you to know what’s going on. Only when I had called after the process was complete and I was billed the extra $940+, they’ve explained the situation to me.
Regards,
Jay.
How’s that different than someone who leases in State A and moves to State B? Sales tax changes when you move. I know this since I’ve moved twice while leasing. Once the sales tax increased, once it decreased. This happens thousands of times a year and GM has a process in place to deal with this scenario.
I guess I’ll have to do a lot of investigating to do if/when I try and take over a lease. Nothing is easy anymore, smh. 