02-20-2020, 03:09 PM | #1 |
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Assuming Lease In Virginia From Out of State
I am looking at assuming a lease from out of state to VA. The dealer (who is trying to sell me a new car) told me that I will owe the 4.15% tax on either the gross purchase amount or in the best case the NADA Value of the car at the time of registration. Has anybody done this before and do you know if that's true? Basically there is the potential for me to owe another $4500+ at the time of registration. Those numbers change the calculation of the my effective payment and it may make more sense to go with a new car. I appreciate any thoughts!
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03-20-2020, 01:08 PM | #2 | |
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03-21-2020, 03:38 PM | #3 |
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some stupid states like FL will charge you their FL tax of the vehicle IF you drive it off their lot. IF you have your vehicle shipped, they can not charge you tax. (If your state is reciprocal with FL, you only pay the difference if any).
learned it hard way couple years ago paid over $10k in tax! haha (had my vacation planned with the car, so it just went to a waste).. |
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03-21-2020, 05:04 PM | #4 |
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Interesting. I don’t have an exact answer yet. I did assume the lease, and the VA DMV said I would have a usage tax on the remaining payments when I registered the car. Although when I registered the car, they did not charge me the tax. It’s possible the charge BMW FS and I will get charged for it. If that happens I’ll update the thread.
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03-22-2020, 06:33 AM | #5 | |
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You may need to report your purchase online to the county tax website and same goes when you sell it.
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03-22-2020, 07:59 AM | #6 | ||
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I was referring to usage or sales tax. On the phone, the DMV said the would charge me at the DMV when I registered the car, but I was not charged. |
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03-22-2020, 06:25 PM | #7 | |
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The day I was buying that car, they told me Floyd Mayweather had just purchased a $2M Bugatti from them and registered it in New Hampshire. He saved about $120k in FL sales tax doing that. |
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03-22-2020, 07:10 PM | #8 | |
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Some states don't have a sales tax, but Florida is not one of them. That means you have to pay the Florida sales tax and in your home state when it arrives. The jurisdiction where you will operate the vehicle will require that you pay specific fees and taxes. Most states require you to do this before registering the vehicle. Check with our local motor vehicle authority, a local dealer, or the tax advisor to figure out your tax rate. By doing so, you know what you have to pay. Purchasing a new vehicle from a franchised dealer makes buying from Florida simple. There are some notable exceptions. The dealer used should be able to take care of most of the paperwork. Sometimes they can collect the sales tax for your home state, but this needs to be determined on a case-by-case basis." maybe it differs by county??? which dealer did you buy it from? |
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03-25-2020, 01:44 AM | #10 |
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I'm a Virginia licensed attorney. trust me the VA DMV will charge Virginia sales tax on ALL vehicles at the time of registration.
because it's a lease, you don't "own" it. so Va DMV will charge BMW the 4%. then your lease company will send you a bill for 5% to cover the fee, interest, and handling. welcome to Virginia. |
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03-25-2020, 01:48 AM | #11 |
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p.s. also Virginia gives a credit for sales tax. so if you traded an m4 for a m5c, the you only pay 4.15% on the difference.
and BMW will likely get a sales credit for taxes paid in the other state [depends what state], but if it's a credit, it might be more than 5%. (most states are higher than Virginia sales taxes on cars) but it all depends. |
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