Gas guzzler tax

My2010M3 · 01-31-2013, 03:12 PM

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 · 01-31-2013, 03:44 PM

Quote:

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 · 01-31-2013, 04:10 PM

I paid it on my lease in 2008.

Cyclone Chris · 01-31-2013, 04:33 PM

I avoided it by purchasing mine in Europe.

M3 Esq. · 02-05-2013, 10:04 PM

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 · 02-07-2013, 07:29 PM

Quote:

Originally Posted by Cyclone Chris

I avoided it by purchasing mine in Europe.

mdosu · 02-07-2013, 07:58 PM

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 · 02-07-2013, 08:07 PM

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

01-31-2013, 03:12 PM	#1
My2010M3 Enlisted Member Drives: 2010 AW DCT FR E90 Join Date: Mar 2010 Location: Indy Posts: 48 iTrader: (0)	Gas guzzler tax 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?
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01-31-2013, 04:33 PM	#4
Cyclone Chris US Air Force. HUAP. Drives: 2013 SG M3 ZCP / DCT Join Date: Jan 2012 Location: Suffolk County, UK Posts: 169 iTrader: (0)	I avoided it by purchasing mine in Europe. __________________ 2005 Pontiac GTO - 6Spd - 445 RWHP/415 RWTQ - SOLD 2013 BMW M3 Coupe - /// Competition Pkg /// Premium Pkg /// Dual Clutch Transmission /// BMW Apps /// Heated Seats ///

02-05-2013, 10:04 PM	#5
M3 Esq. Mind of an effing scientist. Drives: Safely Join Date: Aug 2007 Location: CT Posts: 1,046 iTrader: (2) Garage List 2013 BMW M3 [0.00]	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. __________________ 2013 M3 Coupe/DCT/ZCP/Speed Cloth/BMW Performance Exhaust/Dinan Goodies/CF Bits/Volk TE37 SL

02-07-2013, 07:58 PM	#7
mdosu Help! Can't decide btw MW & AW, 1st world problems Drives: 2008.99989 SSII E90 "Civic" Join Date: Oct 2009 Location: Northern Virginia Posts: 5,922 iTrader: (4)	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. __________________ Yes, that's a xmas tree in my trunk Last edited by mdosu; 02-07-2013 at 08:13 PM.

02-07-2013, 08:07 PM	#8
mdosu Help! Can't decide btw MW & AW, 1st world problems Drives: 2008.99989 SSII E90 "Civic" Join Date: Oct 2009 Location: Northern Virginia Posts: 5,922 iTrader: (4)	here's more explanation: http://www.bimmerfest.com/forums/sho...d.php?t=353498 __________________ Yes, that's a xmas tree in my trunk

01-31-2013, 04:10 PM	#3
JJM335 Second Lieutenant Drives: 2008 E92 M3 Join Date: May 2007 Location: GA Posts: 220 iTrader: (0) Garage List 2008 E92 M3 [0.00]	I paid it on my lease in 2008.

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