@BMW_Dave I’ll send you an email for a quote. Thanks.
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I did ask them (BofA) about sales tax and they said they’ll add on 6% (national average) to the loan and write me a check for that amount and I’d be responsible for paying the tax and anything beyond the 6%. Surprisingly, they’d pay off the car first and I’d have to go to the DMV after I received the title from BMW. But they made it sound fairly straight-forward.
It is easy if you have AAA…otherwise…well…lol
Butttt… the BMW buyout is already going to include tax. BMWFS will be paying the tax on your behalf. They can’t NOT collect tax on a vehicle they sell.
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Hmm… The payoff agreement only shows the Residual, Sales Tax line is $0.00. If they had included it, the loan would cover all of it. But because it doesn’t, BofA is adding in 6%.
Both my VW (VWC) and Nissan (NMAC) payoffs did not include sales tax, at least not beyond what was collected on remaining payments.
Write the check to yourself.
Give the amount BMW wants to BMW.
Keep the 6%
Show up at DMV and that 6% will go toward their fee. THOUGH 6% what town in CA is 6%?
Look up the First Republic Personal Line of Credit. It’s been discussed on LH. 4% rate and it’s not tied to your car.
It’s probably less that they think +6% covers all of the tax and more that they’re willing to loan up to an additional 6% without hitting whatever LTV cap they’ve set.
That’s weird.
A business is required by law to collect sales tax in a state in which they do business. I suppose that could vary by state.
Collecting tax on a car transaction is different in most states vs. other types of purchases since you pay tax based on where you title & register the car vs. where you buy it.
Or you can be Hyundai/Kia, where they Collect it and then tell CA DMV they didn’t.
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I suspect the issue is that the captive is not acting as the retailer the way a dealer would be therefore not being required to collect sales tax at purchase. It’s like buying something from out of state and being responsible to pay the sales tax yourself in a sense.
yes, BUT, again, if you do business in that state. In being educated by the Georgia state board regarding having a dealer license in their state, I was informed that I would be required to collect sales tax from anyone living in GA. Just one example. NJ application also instructed me of the same thing in NJ. A dealer actually has it a little easier than the lender since the dealership is just in that state and would be required to collect from residents of that state. The lender, however, does business in all states (or many states when dealing with a regional lender, like how Toyota breaks up their lending division).
Maybe. I certainly don’t know the rules they have to follow. I’ve personally never had a lender not include it, though.
Sales tax is collected at registration/DMV on lease buyouts in CA from my experience.
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Yeah BMW FS never collects sales tax on lease buyouts.
That’s true.
Quote sent, with instructions. It really is that easy. No fees. Not even the $85 doc fee is charged. Let me know when you’d like to come down to sign. And spread the good word. 
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Thank you everyone for your input! This thread was beneficial.
@BMW_Dave pulled through for me. Finalized the buyout tonight! Dave will be my first stop for any future transactions. Thanks Dave! 
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Thanks for the opportunity @mcmuney and it was a pleasure meeting you last night.
If anyone else would like assistance with a lease buyout (and you live in So Cal) please reach out directly. Of course I also sell new BMW’s and every make/model of pre-owned cars. Here’s my main thread (which I’ll be updating today for March):
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