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2013 and earlier BMW X3 Prices Paid and Buying Experience

1505153555691

Comments

  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,965
    In Texas, you pay sales tax on the whole car, instead of just on the lease payments.... they tend to push the Owner's Choice, so that if you decide to keep the car, you don't have to pay sales tax on it, again....

    It is a balloon note, rather than a lease... In effect, it is the same, if you turn the car in at the end of the lease/balloon term.

    I'll run the numbers for a regular lease... .and we'll see how they compare... Does your $2500 include everything you have to pay at signing? And.. do your numbers include the sales tax?

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • gingibigingibi Posts: 5
    Not sure how the dealer calculates the monthly payment.

    The sale price is invoice ($33215) plus $1000 plus TTL. I think the sales tax in TX is 6.25%.

    $2500 includes everything due at signing.
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,965
    Does the payment he quoted include the sales tax?

    Moderator - Prices Paid, Lease Questions, SUVs

  • gingibigingibi Posts: 5
    Yes, this should be the whole payment.

    Thank you for your help!
  • gingibigingibi Posts: 5
    I am sure I can push for regular lease instead of Owners Choice if it gives me better numbers.

    I would like to keep my monthly payments below $400 and pay the least possible amount due at signing.

    Please run the numbers for a regular lease.

    Your help is greatly appreciated! Thank you!
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,965
    I ran the numbers... Of course, I have to guess on the exact tax and registration fees, etc...

    Doing a regular lease, I come within about $8/mo. of the payment they quoted for the Owner's Choice.... Since that is only about $300 over the term of the lease, you can chalk that up to almost anything..

    Given that, I'd stick with the Owner's Choice.. If you end up keeping the car after the 39 month term, you'll be much better off that way, than with the lease...

    As I tell almost everyone else looking at the 2.5... Ask them what the payment would be on a comparably equipped 3.0 model... You might be surprised at how small the difference will be.

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • avantgoavantgo Posts: 4
    X3 3.0 MSRP of 40,345 - with premium package, cold weather, heated seats, and privacy glass - silver gray with black interior
    Buying price of $38,345
    Lease term: 39 months - 12,000 miles annually
    Confirmed the 0.00100 lease factor but don't have all other details yet
    Pricing quoted is $2195 upfront (tax, deposit, first month payment, Ohio apparently requires sales tax upfront, ) and $452/month.

    Based on what I've seen here, these numbers seem higher, though I'm not sure where.

    Quote for 39 months, 15,000 miles annual is $472 with similar upfront payment.

    Thanks in advance.
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,965
    If $2195 includes all that...

    I rolled the $625 acq. fee into the cap cost
    MSRP 40345
    Sale price $38345
    Cap cost $38970

    39mo/12K residual is 62%
    Money factor is .0010

    Payment is $422/mo.

    39mo/15K residual is 60%
    Money factor is .0010

    Payment is $442/mo.

    They are either adding something else into the cap cost, or they are bumping up the money factor.

    The one item that gives me pause.. $2195 upfront.. after subtracting $950 for first payment and security deposit, that leave $1250 for tax and registration.. That seems low for Ohio.. they recently changed their tax treatment of leases, and I'm not sure how it works now... But, that amount seems low.. Are you getting a tax credit on a trade-in?

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • avantgoavantgo Posts: 4
    Thank you for your quick help. The information on the residuals for 39 months is certainly helpful.

    Regarding the tax treatment for Ohio - that has been confusing for me as well. The best that I can assess is that the $1150 or thereabouts (if I subtract $100 for registration) is the tax is for the difference between the Capcost and the residual - in which the case the numbers are close.

    Thanks again.
  • avantgoavantgo Posts: 4
    Found a 2002 posting that explains some of the tax treatment in Ohio. See below:

    "I recently heard some information that I thought some of you might find helpful when leasing a new vehicle, well OK just those of you who live in the state of Ohio. Changes were recently made in Ohio's tax taws that require all sales and use taxes for leased vehicles to be paid by the dealer upfront. This new law officially began on February 1st, 2002. After this date, taxes on leased vehicles in Ohio will be collected in advance and be based on the total amount paid by the lessee under the lease agreement, including any down payment that they made to reduce the vehicle's capitalized cost. So in order to figure exactly how much tax you owe on your leased car or truck, take the sum of all of your lease payments, add your down payment to it, and multiply it by Ohio's 5% tax rate. This sales tax may be collected in full or be baked into the vehicle's capitalized cost. Please feel free to use this discussion to discuss this specific tax law or tax laws in general. Thank you.

    Car_man
    Host
    Smart Shoppers / FWI Message Boards
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,965
    Great info.. Of course, the tax rate isn't 5% any more...

    Another point: Just because the tax has to be paid upfront, doesn't mean you can't roll it into your lease's cap cost, and add it to the monthly payment.

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • timmbojtimmboj Posts: 123
    Hi kyfdx:

    I'm gonna try and scoop up on an 05 X3 3.0 lease before end of August. Do you know of any particular fees that apply only to Tennessee? I still don't understand tax. Our rates are 8.25%. Someone once told me that cars in Tennessee are only at 6%.

    I believe I've got all the MF, Residual, MSRP, Invoice info I need. Its all the other fees I'm afraid of.

    Thanks!
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,965
    Not sure about TN... I'll see if I can get dwynne over here to help you out.. He lives in TN, and has leased cars there, recently...

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • dwynnedwynne Posts: 4,018
    The state tax rate is 7% and is applied to the monthly PAYMENT. It also applies to any cap cost reduction you make - any money paid at lease signing to reduce the cap cost (NOT acquisition fees, dealer fees, etc).

    You also pay the local option tax up front (the city/county part of the sales tax). This is your local tax rate (your rate - 7% state) on the first $1,600 and 2.75% on the next $1,600. In my county, the local rates is 2.25% on top of the 7% state rate, so the up front local option tax due on a car SALE or LEASE is $80 ($1,600 x 0.0225 = $36 + ($1,600 x 0.0275 = $44) = $80).

    If your local tax is 1.25% on top of the state 7%, then you would pay $64 in local option tax, 7% on any cash you put down to reduce the price of the truck, and then pay 7% on whatever the payment works out to be.

    Example: $300 and month payment = $321 ($300 x 1.07) with tax.

    Dennis
  • I'm wondering if the following is a good deal on X3 3.0 in NY.

    X3 3.0 - [non-permissible content removed] Silver, Grey Leather, Cold Weather package, Satellite Radio, Privacy Glass

    MSRP: $40,450
    Cap Cost: $39,400
    Residual 60% - 15K
    Money Factor: .00100
    Price $452
    39 month lease

    Price does not include
    $625 acquisition fee
    $500 Security Deposit
    $452 first month
    $1528 - NYS Taxes @ 8.375%?

    I'm not knowledgeable about whether this is a good deal or not. Any help given would be very much appreciated.
  • timmbojtimmboj Posts: 123
    Hi Dennis, Thanks.

    Yes, 9.25% total tax in Knoxville (7% state, 2.25% local).

    7% tax on the monthly fee. I can remember that part.

    I'm a little confused in the first $1,600 and next $1,600. What are these? Where does this $1,600 figure come from? Or do i simply pay a one-time $80 fee for local tax no matter the cost of the car?
  • dwynnedwynne Posts: 4,018
    If you BUY a car (or anything else) the state part of the tax is 7%.

    In your case and mine the local tax is 2.25%.

    On large ticket, single item purchases (a car, plasma TV, etc) the locals can only collect on the first $3,200 of the item.

    So if you BUY a car you would pay 7% on the full purchase price, and 2.25% on the first $1,600 and 2.75% on the next $1,600 ($80 total).

    On a lease, it is done more or less the same way. Rather than have you pay 9.25% on top of each payment, they have you pay the local option tax up front ($80) and only add the state tax to the payment. This is to your advantage in almost every case. For example, if your payment was $500 for 36 months you pay $535 x 36 = $19,260 + the $80 up front. If they taxed local on the payment, then you would pay $546.25 x 36 = $19,665 which is more money.

    Obviously, on a higher dollar car with a payment this would save even more (on a $1,000 a month lease it saves over $900 over the course of a 36 month lease).

    Does this make sense? You go ahead and pay the local tax on the first $3,200 of a single big-ticket item up front, then avoid the local tax for the rest of the lease.

    So just figure on $80 for the local tax, plus tags, dealer fees, lease acquisition fee, etc at signing, then 7% on top of the monthly payment for state tax.

    Dennis
  • timmbojtimmboj Posts: 123
    Perfect. Thanks!
  • kyfdx@Edmundskyfdx@Edmunds Posts: 25,965
    All your numbers are accurate and result in the correct payment... I'd say your selling price is at least $1000 too high....

    So, maybe the same payment with only $2100 due at signing, instead of $3100 would be a good deal...

    regards,
    kyfdx

    Moderator - Prices Paid, Lease Questions, SUVs

  • Kyfdx:

    Thanks for your reply.

    I understand what you're saying, and it's good to see the numbers make sense and it seems that the dealership is being fair, but aren't those costs which add up to $3100 sort of fixed. Should I concentrate on getting the cap cost to be lower and getting a lower monthly lease price? Or am I just missing something.

    Thanks again.

    -rgottheim
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