[eshoukry93]

When I went to order my e92 335i, the salesman convinced me that BMW's Owner's Choice program would be a good deal, but after seeing some of the lease terms here I'm not so sure. The advantages of Owner's Choice is that I only pay sales tax one time, whereas, it is my understanding that if you buy the car at the end of the lease, you'll pay sales tax again, right? And I am planning on buying the car.

Here are my terms for BMW's Owner's Choice:

3 yr/10K miles
Price $46,600
Cash down $7,000
Rate 6.5%
Govt Fees $132
Tax $3033
Doc Fee $50
Balloon $28,426

Mo. Pmt $596.18

I'm seeing people putting down a lot less on a lease and still getting a comparable monthly payment. I have two questions:

By going with Owner's Choice and only paying tax once on the car, is this a better option if I am planning on buying it?

Also, since my car is already ordered is it too late to change to a lease? We haven't finalized anything yet. I only put $1k down for my order.

Thanks.

[Bimmer335i07]

I'm not sure how owner's choice program works, but I do know that you still have a choice on how you want to pay for the car, either it be a loan or lease you can still change your mind before your car arrives.

Good luck!

[RichP]

You pay the same amount of sales tax regardless of how you obtain the car. If you lease, you pay the sales tax on the depreciated amount of the value of the car during the lease, and, if you purchased the car, you would pay the remainder of the tax on the value of the car at that point.

[Enkur]

Not true for Texas. TX collects entire sales tax upfront on the sale of a new car regardless if it is a lease or a purchase. Since the lease company's name is on the title and when you decide to keep the car at the end of the lease, from the perspective of the state that is a separate sale transaction and hence you are assessed sales tax again.
check out the following thread for more discussion

http://www.bimmerfest.com/forums/sho...d.php?t=201111

Owners choice is the best deal for TX residents if you decide to keep the car after the period is over.
OP try to negotiate down your interest rate. I got a rate of 5.2% back in Jan when the rates were low but maybe they can swing you some slack.

Originally Posted by RichP

You pay the same amount of sales tax regardless of how you obtain the car. If you lease, you pay the sales tax on the depreciated amount of the value of the car during the lease, and, if you purchased the car, you would pay the remainder of the tax on the value of the car at that point.