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BMW 3-Series (E90 E92) Forum > BMW E90/E92/E93 3-series General Forums > New & Preowned BMW Ordering / Pricing / Tracking Information Forum (including European Delivery) > Leasing: Taxes and fees separately vs in the payment



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      11-09-2009, 10:03 AM   #1
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Question Leasing: Taxes and fees separately vs in the payment

I wonder if it makes any difference paying taxes/fees separately vs making them to be part of the monthly leasing payment? I see no difference other than spreading payment across whole lease terms vs paying in one lump sum. Am I correct or there is something else beneath the surface that I do not see?

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      11-09-2009, 11:00 AM   #2
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Inclusion = Higher Cost

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Originally Posted by Eternum View Post
I wonder if it makes any difference paying taxes/fees separately vs making them to be part of the monthly leasing payment? I see no difference other than spreading payment across whole lease terms vs paying in one lump sum. Am I correct or there is something else beneath the surface that I do not see?

Thanks!
If you include the tax with your payment, you are paying to finance the taxable amount for the length of the lease, so you are paying more. Not much more, but more.
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      11-09-2009, 11:15 AM   #3
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If you include the tax with your payment, you are paying to finance the taxable amount for the length of the lease, so you are paying more. Not much more, but more.
cgpublic,

Thank you for your answer. Let me clarify... Are you saying that I'm paying more just every month, which is obvious to me since tax/fees are included as part of financing, or that also total amount for the whole lease will be more? Another words, am I going to spend equal total amount of money for both cases or not?

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      11-09-2009, 11:35 AM   #4
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...am I going to spend equal total amount of money for both cases or not?
If you include the tax within the monthly payment, you are financing that amount at whatever rate you are paying for the lease, so your total cost at the end of the lease will be more than if you simply take the money out of the bank and write them a check.

That said, depending on your money factors for the lease, you may find that the money that is presently in the bank is more valuable at whatever your rate of return is for the duration of the lease. As well, how you write down the lease personal or business.

Regardless, we usually not speaking of a significant amount of money given the overall cost of the lease.
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      11-12-2009, 12:20 PM   #5
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CGP is correct.....but if you pay a lump sum on the tax on a lease and you total the car you don't get the money back......similar to a down payment.
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