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Prices Paid: Buying & Leasing Experiences BMW X3 Prices Paid and Buying Experience
1461 messages, Last post on Jul 31, 2008 at 2:04 PM
You are in the Prices Paid: Buying & Leasing Experiences Forum. Your Hosts are car_man & kyfdx
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Replying to: timmboj (Aug 29, 2005 1:46 pm) 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
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Replying to: dwynne (Aug 29, 2005 2:18 pm) |
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Replying to: rgottheim (Aug 29, 2005 10:57 am) So, maybe the same payment with only $2100 due at signing, instead of $3100 would be a good deal... regards, kyfdx
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Replying to: kyfdx (Aug 29, 2005 6:08 pm) 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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Replying to: rgottheim (Aug 29, 2005 7:55 pm) The end result, is that they have to lower the selling price by $1000 to achieve that... Then they take $1000 of that "upfront" amount, and add it to the selling price... Put another way.. Just because there are $3100 of costs due at inception, doesn't mean that you have to pay them all upfront... you can roll just about any or all of it into the monthly cost... They can structure the lease just about any way you want it... I prefer to pay only the 1st payment and security deposit upfront... I like to roll everything else into the cap cost... It doesn't matter if it is taxes, acq.fee, whatever... you can roll it all in.. So, lower the payment, or lower the upfront... $1000 less is $1000 less.... regards, kyfdx
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Replying to: kyfdx (Aug 29, 2005 8:07 pm) One last question. What should the invoice price be on this X3? And should the cap cost be $500 or $1000 over the invoice? It's an x3 with the premium package, cold weather package, satellite radio, and privacy glass. rgottheim
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Replying to: kyfdx (Aug 25, 2005 7:30 pm) Sorry for all the questions. I'm kind of nervous about all this and I want to make sure I don't get a bad deal.
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Using an existing vehicle on my dealer's lot, please verify my calculations... MSRP: 42,340 (41,645 + 695 Destination) Cap Cost: 37755 ($500 over invoice) 39 Months 15K Miles per year MF: .001 Residual: 61% Tax: 7% $80 Local Tax $625 Acq. Fee $450 Security Deposit I come up with $395.87 ($369.97 + $25.90 Tax). But when I punch these same numbers into Edmunds Lease Calculator they come up with $434.19. Am I calculating something wrong? I just want to be realistic, and have an idea what a good deal looks like if my dealer were to present such a thing. (Har Har)
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Replying to: rgottheim (Aug 29, 2005 8:31 pm) regards, kyfdx
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Replying to: timmboj (Aug 30, 2005 3:45 am) 39mo/15K.. Residual 60%.. MF .0010 2.5 model... 39mo/15K.. Residual 59%.. MF .00125 Most people want automatics... The automatic is a no cost option on the 3.0 model and the moonroof is standard.... That makes the spread between the prices a lot less than you would think... So, the 3.0 is probably a little more to lease... but, not much.. regards, kyfdx |
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