Tax on lease rolled into cap cost?

Menotti · 04-06-2010, 12:31 PM

Working on a 328xi lease and in the sheet, the dealership is adding the sales tax into the cap cost, rather than simply as a part of the monthly payment.

Is this common? Reason is that it is affecting the total depreciation (making it higher than if the tax isn't rolled in)

Menotti · 04-06-2010, 12:35 PM

Nevermind, I am an idiot...I think.

Doesn't really matter how it is applied, does it? One way is a tax on the total and the other would be a tax on the monthly. Comes out to be the same.

Menotti · 04-06-2010, 12:38 PM

Also, I posted this in the wrong subforum

JDBorges187 · 04-12-2010, 04:35 PM

You live in NJ. NJ requires the taxes upfront. So BMW FS foots the bill and adds it to your financing. It makes a difference because for example if your monthly payment is 500 a month. at 7% the taxes are $35/mo time 36 months thats $1260 total in taxes. If you add that to your cap cost it would be atleast $37/mo.

04-06-2010, 12:31 PM	#1
Menotti Enlisted Member 6 Rep 32 Posts Drives: 2010 328xi Coupe Join Date: Apr 2010 Location: Jersey City, NJ iTrader: (0)	Tax on lease rolled into cap cost? Working on a 328xi lease and in the sheet, the dealership is adding the sales tax into the cap cost, rather than simply as a part of the monthly payment. Is this common? Reason is that it is affecting the total depreciation (making it higher than if the tax isn't rolled in)
	Appreciate 0 Tweet Quote

04-06-2010, 12:35 PM	#2
Menotti Enlisted Member 6 Rep 32 Posts Drives: 2010 328xi Coupe Join Date: Apr 2010 Location: Jersey City, NJ iTrader: (0)	Nevermind, I am an idiot...I think. Doesn't really matter how it is applied, does it? One way is a tax on the total and the other would be a tax on the monthly. Comes out to be the same.
	Appreciate 0 Quote

04-06-2010, 12:38 PM	#3
Menotti Enlisted Member 6 Rep 32 Posts Drives: 2010 328xi Coupe Join Date: Apr 2010 Location: Jersey City, NJ iTrader: (0)	Also, I posted this in the wrong subforum
	Appreciate 0 Quote

04-12-2010, 04:35 PM	#4
JDBorges187 Private 3 Rep 78 Posts Drives: 2011 328xi Join Date: May 2009 Location: Bronx, NY iTrader: (0)	You live in NJ. NJ requires the taxes upfront. So BMW FS foots the bill and adds it to your financing. It makes a difference because for example if your monthly payment is 500 a month. at 7% the taxes are $35/mo time 36 months thats $1260 total in taxes. If you add that to your cap cost it would be atleast $37/mo.
	Appreciate 0 Quote