How is sales tax applied to a BMW lease? – BMW of Norwood, serving Quincy and Franklin, MA

Due to its convenience and flexibility, a lease is a great option for drivers who prefer to enjoy the latest BMW features and technologies more often. Additionally, leased vehicles are always under warranty, and lessees don't have to worry about depreciation costs. But perhaps the most compelling reason many drivers from Canton to Needham choose leasing over financing is the cost. Thanks to smaller monthly payments and less sales tax, leases generally cost less than loans over the same period. But why is sales tax less with a lease than a loan?

Do BMW lease payments include sales tax?

With a lease, since you are essentially paying for the temporary use of a vehicle, most states charge sales tax on the monthly payments and not the vehicle's total cost. This benefits lessees by reducing the total upfront cost to get behind the wheel. In Massachusetts, the Motor Vehicle Sales and Use Tax is 6.25 percent. So, for example, if you lease a new 2021 BMW 228i xDrive Gran Coupe for $392.00 per month, the actual monthly payment will be $369.00, plus $23.06 in sales tax, bringing the total to $392.06. Lease details like monthly payments, sales tax, and APR are always disclosed in advance, so you'll know your exact monthly payment amount before signing the lease contract.

Lease a new BMW near Dedham and Westwood, MA

Get in touch with BMW of Norwood today for more information about leasing a new BMW and the latest new BMW specials. And if you'd like to get behind the wheel to experience a BMW's premium accommodations, amenities, and performance for yourself, we invite you to visit us here in Norwood for a test drive. We'd love to give you a tour.

Source: blog