[bacampbe]

My M235i Vert comes off of lease next March. I am considering buying it, but I suspect it is not worth the residual. I've seen several people comment about getting better deals from the dealer. How have people gone about negotiating that?

If it makes any difference, I'm in Texas. I know I will already get hit for paying sales tax again, so I'd rather not also take a hit on the price :-)

[bacampbe]

Originally Posted by bacampbe

My M235i Vert comes off of lease next March. I am considering buying it, but I suspect it is not worth the residual. I've seen several people comment about getting better deals from the dealer. How have people gone about negotiating that?

If it makes any difference, I'm in Texas. I know I will already get hit for paying sales tax again, so I'd rather not also take a hit on the price :-)

Of course, I found multiple threads in the general forum after posting this. Never mind :-)

[BEM-S4]

Not 100% sure on Texas but most states you only pay on the portion of the car you use during lease, so in most cases no double tax. If your car was $50k and the residual is $30k, you'd only have paid tax on the $20 so far.

[keylime503]

Originally Posted by BEM-S4

Not 100% sure on Texas but most states you only pay on the portion of the car you use during lease, so in most cases no double tax. If your car was $50k and the residual is $30k, you'd only have paid tax on the $20 so far.

I believe Texas is one of those states where even on a lease you owe sales tax on the full value of the car, not just the depreciation down to the residual.

[BEM-S4]

Originally Posted by keylime503

I believe Texas is one of those states where even on a lease you owe sales tax on the full value of the car, not just the depreciation down to the residual.

Ok in which case I'd check with the dealer they have to know what to do here - in terms of logistics - but I can't imagine you'd pay 2x.

[bacampbe]

Originally Posted by BEM-S4

Ok in which case I'd check with the dealer they have to know what to do here - in terms of logistics - but I can't imagine you'd pay 2x.

My understanding is that in Texas you pay sales tax on the full negotiated price of the car when you lease it, not just the depreciation. The state considers that to be a sale of the car to the leasing company and taxes it in full, but the leasing company of course charge it back to you.

Then if you buy the car off lease, you pay full sales tax on the value of that transaction. So effectively the residual value does gets taxed twice.

[stealth-twntrbo]

Originally Posted by bacampbe

My M235i Vert comes off of lease next March. I am considering buying it, but I suspect it is not worth the residual. I've seen several people comment about getting better deals from the dealer. How have people gone about negotiating that?

If it makes any difference, I'm in Texas. I know I will already get hit for paying sales tax again, so I'd rather not also take a hit on the price :-)

The dealer will get an A B payoff and you might be able to pay less than residual if BMW dynamic pricing is less. You will have to pay the customer loyalty adder but it still can be significantly less than residual but it is up to the dealer to provide you with that savings