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      02-17-2008, 05:16 PM   #4
BasicMarinWheels
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Drives: 2009 335i e90
Join Date: Jan 2006
Location: Marin County, CA

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I ask because sales tax, at least in California, is calculated based on your payment amount. So, for example, in my current BMW, since my residual is 64% percent, I only pay sales tax on 36% of the car (the monthly payment amount is about $500, so my tax, at 8.25% is only about $40/month). In the end, I only pay sales tax on the portion of the car I've "used up" (i.e., 36%).

So, on a 3 year lease, with a 64% residual, why wouldn't I just pay 36% of the $1,300 tax? That would be about 1% per month, or $13 per month. Then, the next owner of the car would pay the rest (64%).

So, I guess what I'm asking is, are you sure I have to pay the whole thing?

It just doesn't seem right (or, if it's right, it doesn't seem fair). Why would the initial purchaser pay the whole tax when "consuming" only part of the car? Then, either the subsequent owner pays it again (double taxation), or pays nothing (getting a free ride on the initial purchaser/lessee's back).
Appreciate 0