Gas guzzler tax

[My2010M3]

Searched but no real answer. Thought somewhere I read that you avoid it when you lease a car. So if I'm trying to calculate a residual from msrp, do I subtract it from msrp?

[MSPORTWORLD]

Originally Posted by My2010M3

Searched but no real answer. Thought somewhere I read that you avoid it when you lease a car. So if I'm trying to calculate a residual from msrp, do I subtract it from msrp?

No avoiding it to my knowledge...pay to play

[JJM335]

I paid it on my lease in 2008.

[Cyclone Chris]

I avoided it by purchasing mine in Europe.

[M3 Esq]

It cannot be avoided as far as I know. The tax is part of the MSRP just like the destination charge or any option you choose.

[Johndong888]

Originally Posted by Cyclone Chris

I avoided it by purchasing mine in Europe.

[mdosu]

I think you're right it doesn't roll into MSRP part but only b/c MSRP is use to figure out the residual. But apparently some lessors do roll it into residuals. One way or another, the gas guzzler cost is calculated into cap cost.
So higher cap cost figures into higher depreciation, and higher interest, hence higher monthly payment. You can't beat the system.

http://mbworld.org/forums/automotive...ition-fee.html

Lease Payment Calculation Formula:
(Cap Cost – Residual Value) / Term = Depreciation
(Cap Cost + Residual Value) X Base Rate = Interest
Depreciation + Interest = Base Monthly Payment

Terms Used in Lease Formula:
CAP COST = Vehicle Purchase Price (amount financed)
RESIDUAL VALUE = MSRP (window sticker) X Residual %
TERM = Length of Lease in Months (3 years = 36 months)
BASE RATE = Dealer’s Buy Rate (dealer can mark this up for profit)

Another beauty of buying pre-owned. You don't pay all the gas guzzler "costs" up front, if at all.

[mdosu]

here's more explanation:
http://www.bimmerfest.com/forums/sho...d.php?t=353498