[rmorin1249]

I am leasing and live in MD. If I would decide to buy my X5 at the end of the lease do I have to pay MD sales tax on the residual value? Thanks.

[sand99]

Yes, I just bought the lease on my F80. You have to pay the sales tax, and will even have to pay to re-register/title with the state requiring new plates.

Only way to avoid this is to do the Owners Choice financing option, which is a balloon. Works very similar to a lease though with fixed set of miles (10K-12K), buyout price at the end, etc.

[adr1974]

Originally Posted by rmorin1249

I am leasing and live in MD. If I would decide to buy my X5 at the end of the lease do I have to pay MD sales tax on the residual value? Thanks.

I'm not sure that you do. Maryland is one of the few states that charges the full amount of tax at lease inception. From the link below:

Q. Can I purchase the vehicle at the end of the lease?

A. For those that really love their BMW and want to keep it longer, at lease-end they may purchase it from the Lessor. After the lease is up the lessor's only goal is to turn the vehicle to cash. The state of Maryland exempts the vehicle from tax in the event of such purchase based upon the fact that the Lessee either paid or included state tax in the lease at inception

https://www.bmwofbelair.com/vehicle-leasing.htm

[rmorin1249]

Thanks. I had heard that I would not have to pay any additional tax if I chose to purchase at lease end. I will confirm with my dealer. I have someone interested in my X5 as it has been impeccably maintained, garaged and will probably have less than 15k miles at turn in.

[Marty in NY]

Originally Posted by rmorin1249

Thanks. I had heard that I would not have to pay any additional tax if I chose to purchase at lease end. I will confirm with my dealer. I have someone interested in my X5 as it has been impeccably maintained, garaged and will probably have less than 15k miles at turn in.

Ha! I was about to ask why you would consider buying it after knowing your thoughts about it. Then when I read this post, I understood

[rmorin1249]

We have decided as empty nesters the X5 is too large for our needs. Will be looking at the X3, GL43 and SQ5 as well as the midsize German sedans.