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Old 07-01-2007, 11:41 PM
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Join Date: May 2007
Location: NYC
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This is only my 4th car but I'm 99% sure I know how it works - when the leasing company pays taxes for you, they don't do it for free, they charge you APR for it. So, normally, they take a total amount of taxes due, say $3000 and add it to your cap cost. Then the lease is recalculated to amount for that extra cost. This is how it worked with my previous cars (non-BMW). Now with BMW, the total came out higher by a few percent of the tax amount. I couldn't get the actual answer from a dealer other than they use a program and that what it gave them. It could be dishonest dealer but I really don't think so. More likely BMW financial services adds some percentage on those payments. It could be that their process is diffrent from other manufacturers, I honestly don't know.
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