Virginia lease taxes

[MrSmileyDC]

Anyone explain to me how the taxes work in Virginia on a lease? Is there the normal 4.05% tax and a retail sales tax on the monthly payment too?

[williocom]

Originally Posted by BimmerGuyDC

Anyone explain to me how the taxes work in Virginia on a lease? Is there the normal 4.05% tax and a retail sales tax on the monthly payment too?

So in VA, you have to pay the normal tax on the entire sales price of the vehicle, regardless if you are leasing it or not. Some states only make you pay tax on the monthly payment not the full price of the vehicle.

Some people chose to pay the tax up front, others roll the tax into the lease. As far as I know, there is no monthly retail sales tax on top of this.

[MrSmileyDC]

Originally Posted by williocom

So in VA, you have to pay the normal tax on the entire sales price of the vehicle, regardless if you are leasing it or not. Some states only make you pay tax on the monthly payment not the full price of the vehicle.

Some people chose to pay the tax up front, others roll the tax into the lease. As far as I know, there is no monthly retail sales tax on top of this.

Thanks. I'm working on a lease deal now for ED. The numbers didn't make sense and I still don't think I have all the facts yet. I was getting quoted 890 on a 36/10k lease with zero down on an m4 at 74k us msrp. MF and lease fee was jacked up big time.

[Knicks_fan2]

The car purchasing rules in Virginia are the absolute worst.

[williocom]

agreed. VA is the absolute worst. you should get the app Leasematic for your phone and plug in all the numbers to see what the lease price should be.

for reference, when I got my car back in September, I put nothing down other than the MSD's and with tax I am at $866 a month. The MSRP was ~$76k and I did 12k miles a year.

[MrSmileyDC]

I've got an excel spreadsheet setup now. They marked up the MF to .00205 and the lease fee to 925. With the standard 795 charge, MF of .0016 and $1k deposit down the payment would be around 824. Negotiated price is $66.3 on about a 74k msrp.

Edit: correction 850 with taxes down.

[C-ARchitect]

Originally Posted by BimmerGuyDC

I've got an excel spreadsheet setup now. They marked up the MF to .00205 and the lease fee to 925. With the standard 795 charge, MF of .0016 and $1k deposit down the payment would be around 824. Negotiated price is $66.3 on about a 74k msrp.

What dealers are you working with? All the dealers I've been to won't budge on the MSRP at all.

[MrSmileyDC]

Originally Posted by C-ARchitect

What dealers are you working with? All the dealers I've been to won't budge on the MSRP at all.

I'm doing ED which is why my price is lower. Deal is for ed invoice + 1500 for August delivery.

[ASAP]

Don't forget that you will pay immense yearly private property taxes on this car as well if you live in VA.

[MrSmileyDC]

Originally Posted by ASAP

Don't forget that you will pay immense yearly private property taxes on this car as well if you live in VA.

Correct. I could technically register in another state with a property tax of about 0.6% compared to 5% in VA, but then I have to drive there once a year for inspections. Plus you have to deal with those tax collectors that hunt your car out for not having a decal and doing multiple tax returns for different states is a pain to keep it all legit on paper if ever questioned about.

[golovko]

I just ordered my M3 last week for a June ED. I still haven't heard back about my date choices yet but I'm told it takes about a week.

The yearly private property tax for my 335i and my wife's X3 are both around $1,400-1,500. I moved up here from NC where my property tax on my 335i was around $300

[MrSmileyDC]

Originally Posted by golovko

I just ordered my M3 last week for a June ED. I still haven't heard back about my date choices yet but I'm told it takes about a week.

The yearly private property tax for my 335i and my wife's X3 are both around $1,400-1,500. I moved up here from NC where my property tax on my 335i was around $300

I ordered my M4 Friday. Going to a 2016 model. I plan to give it a week before harassing my CA about it. Did you get a production number when you ordered?

No kidding. I plan to budget 250 a month for the tax man.

[dmk08]

Can you do Owners Choice in VA?

[golovko]

Originally Posted by BimmerGuyDC

I ordered my M4 Friday. Going to a 2016 model. I plan to give it a week before harassing my CA about it. Did you get a production number when you ordered?

No kidding. I plan to budget 250 a month for the tax man.

Yeah, I got a production number before I left the dealer the same day.

I was debating waiting on a 2016 since I am so close but I really wanted to do ED this time around and June was the perfect time for me. I went through first round of production for a new model year with my 335i, order went in in July but I didn't receive the car until October so I opted out of ED because of the weather starts to get iffy around that time. I'm playing it safe this time around although the rumored LED taillights would definitely be a nice addition.

Which dealer did you go through?

[MrSmileyDC]

Originally Posted by golovko

Yeah, I got a production number before I left the dealer the same day.

I was debating waiting on a 2016 since I am so close but I really wanted to do ED this time around and June was the perfect time for me. I went through first round of production for a new model year with my 335i, order went in in July but I didn't receive the car until October so I opted out of ED because of the weather starts to get iffy around that time. I'm playing it safe this time around although the rumored LED taillights would definitely be a nice addition.

Which dealer did you go through?

Passport. I don't have a production number, but I figure that might be normal given the circumstances of when I plan to go. Another forum member said they had to get a special exception made to pick their car up August 3rd as July 31st was the last day for 2015. I'm also doing PCD as well.

[MrSmileyDC]

Originally Posted by dmk08

Can you do Owners Choice in VA?

Not sure. I'm planning to finance.

[rymiller73]

Originally Posted by ASAP

Don't forget that you will pay immense yearly private property taxes on this car as well if you live in VA.

That's the understatement of the year....

[williocom]

Originally Posted by BimmerGuyDC

Passport. I don't have a production number, but I figure that might be normal given the circumstances of when I plan to go. Another forum member said they had to get a special exception made to pick their car up August 3rd as July 31st was the last day for 2015. I'm also doing PCD as well.

for Passport

[golovko]

Originally Posted by rymiller73

That's the understatement of the year....

My estimate is about $3800/yr for my M3. I currently pay ~$1,500 for the 335i...stings more when just 2 years ago I was paying $300 for the same car living in a different state.

[MrSmileyDC]

Originally Posted by golovko

My estimate is about $3800/yr for my M3. I currently pay ~$1,500 for the 335i...stings more when just 2 years ago I was paying $300 for the same car living in a different state.

Do you lease? In Arlington I don't believe you get any of the tax subsidy when you lease.

[golovko]

Originally Posted by BimmerGuyDC

Do you lease? In Arlington I don't believe you get any of the tax subsidy when you lease.

yeah, I lease. I think its around 5% property tax here not counting the $33/year for an Arlington Country sticker that says you own a car here

[MrSmileyDC]

Originally Posted by golovko

yeah, I lease. I think its around 5% property tax here not counting the $33/year for an Arlington Country sticker that says you own a car here

Yes. If you own its no tax on the first 3k, then 71% of the next 5% value up to 20k, and after that you are on the hook for the full 5%. That is why someone was talking about Owners Choice since it is like you own the car on paper but have the option to turn it in like a lease. Appears to be like having a balloon payment at the end. It should be about 3100 (3500 total, but subsidy of 400) on a 70k value. From what I read they use the lowest published price. Though I have never had to deal with VA yet. As others have probably said before income tax in lower in VA and you can conceal carry or open carry for that matter. Freedom isn't free.