Quote:
Originally Posted by RoyB
Any dealer incentive is always taxed. Any money the dealer gives out of their pocket is not taxed.
For example.
MSRP: $50,000
Dealer discount: $5,000
BMW incentive: $2,000
You would be taxed on $48,000, even though the purchase price would be $43,000.
Also, BMW incentive is actually $2500 if you were getting out of a previous lease. My dealer kept saying $2,000 until I pushed the lease to lease credit and they applied the extra $500 for a total of $2500.
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In my state, you're only taxed on the monthly payment, which is inclusive of any discounts from any source. So it's not *always* taxed.