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I posted this on the FB Chevy Colorado/GMC Canyon page but....Last week I traded a truck in for a used Colorado At an average sized Chevrolet dealership. Took a loan out, agreed on a price, signed the contract and out the door I went. I get a call from the dealership yesterday...they made an error calculating the taxes and I owe another 2000.00. Until they get their money, they are refusing to title and register my truck.
I told them that they'll be eating their mistake, not me. We both signed the purchase order agreement where we agreed on a net price (financed).

I liken it to this...if a company sells you a bottle of RainX for example, you're not paying the government the taxes, your paying the company who in turns pays the taxes. If I walk off with a bottle of RainX and I'm not charged taxes, the government doesn't come after me, they come after the company for the taxes off the price I paid for it.

Anyone who works at a dealership want to confirm! Here is an interesting article that confirms my suspicions. Can a Dealership Charge Motor Vehicle Tax After Car Purchase?
404804
 

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Sounds like that would be a breach of contract on their end. This might be something you want to take up with a bank or get some legal advice. If you’re in the right then looks like you’ll have to find another dealership to do business with cuz you aren’t paying that 2k. I bet they’ll change their minds if you offer to return the truck in exchange for your old truck. They’ll lose far more money on that.


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Taxes on Vehicles and Homes tend to be different. Buyer is responsible for the tax at the moment of ownership. Government can seize in this case the vehicle for failure to pay the tax.
Sadly, the dealership office staff did a poor job in your case.
 
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Not sure if all states are the same, but in Tennessee, you just pay sales tax on the difference between vehicle price and trade allowance. In your case, whatever the sales tax difference is on approximately one thousand dollars. In Tennessee, that would be about $75 dollars. They collected $73.58 in taxes from you so, depending on tax rate, you are good from what I see.

Now some states assess a value type tax upon registration in addition to sales tax and that can be in the thousands.
 

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I know in NY you only pay sales tax on the difference between the new vehicle price and the trade in value(you already paid sales tax on the trade in when you bought it!). $27,325.58 - $26,250.00 = $1075.58. So the tax would only be on the $1075.58.
I don't see where they would get that you owe $2000.00 more?
 

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I posted this on the FB Chevy Colorado/GMC Canyon page but....Last week I traded a truck in for a used Colorado At an average sized Chevrolet dealership. Took a loan out, agreed on a price, signed the contract and out the door I went. I get a call from the dealership yesterday...they made an error calculating the taxes and I owe another 2000.00. Until they get their money, they are refusing to title and register my truck.
I told them that they'll be eating their mistake, not me. We both signed the purchase order agreement where we agreed on a net price (financed).

I liken it to this...if a company sells you a bottle of RainX for example, you're not paying the government the taxes, your paying the company who in turns pays the taxes. If I walk off with a bottle of RainX and I'm not charged taxes, the government doesn't come after me, they come after the company for the taxes off the price I paid for it.

Anyone who works at a dealership want to confirm! Here is an interesting article that confirms my suspicions. Can a Dealership Charge Motor Vehicle Tax After Car Purchase? View attachment 404804
In GA your motor vehicle tax is paid at the time of registration. If they paid that for you and your vehicle came with plates you bring that document into the tag office and they waive the tax. This is all coming from buying a vehicle in the state of GA. Your state may and is probably different.
 

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I would make two 4 x 8 foot enlargements of the contract and mount them to a sheet of plywood, build a nice support pedestal in the truck bed, and drive around the dealer lot with a bullhorn enlightening prospective customers as to your dilemma. I saw a guy do this once with a gigantic lemon. F'in hilarious! It REALLY got their attention when several people, me included, left the lot. Man were they PISSED!
 

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Sounds like that would be a breach of contract on their end. This might be something you want to take up with a bank or get some legal advice. If you’re in the right then looks like you’ll have to find another dealership to do business with cuz you aren’t paying that 2k. I bet they’ll change their minds if you offer to return the truck in exchange for your old truck. They’ll lose far more money on that.
This.......... Threaten to cancel the deal and that you want your old truck back. They’ll start to listen.
 

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They obviously made a mistake. Taxes on this deal were stated to be $73, a ridiculously low amount. I'm surprised, indeed shocked, that they didn't spot this. Stupid rookie mistake. The sad truth is that the dealership is correct--it was a mistake, not a scam. The issue is whether you want to press the issue to take advantage of the dealership's mistake. You were supposed to pay taxes on this deal, you know this right?

Given the fact you have a signed contract, that may be difficult for the dealership to enforce, but apparently the dealership will withhold sending you a title, and the next legal move is yours. The finance company may have issues with this deal, if it doesn't have a title, so the finance company may declare a default and crap on your credit. So this could escalate into a really big shitshow very quickly. Do you really want to lawyer up for this--to take advantage of their mistake? Might cost you more than the $2,000 to hire a lawyer. Also, be advised of a legal concept called "mutual mistake" which allows the dealership to rescind a contract, and compare and contrast that with the legal concept "unilateral mistake" which does not allow the dealership to rescind the contract.

Why not just rescind the financing and add the $2,000 the cost of the truck? That is what was supposed to happen, but for their mistake. Have them throw in some free oil changes or car washes to cover your time and trouble, and make sure the finance company is happy and there is no charge to you. I'm not sure I would want to go the mattresses (Godfather expression) over $2,000.
 

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This isn't complicated. It's not your responsibility to pay for their mistakes. If they start trying to play games, then they are breaking the contract they signed with you.
 

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OK if they refuse to title and register then have them give you the truck and register and get it titled yourself. Have them credit you for those charges.

Contract was signed you paid taxes whether or not its right I dont know. They have to pick up the difference.

Make sure you are not getting a bill since you financed it too. Or did you get a bill already?

Did they take your trade already??
 

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Discussion Starter #14
Not sure if all states are the same, but in Tennessee, you just pay sales tax on the difference between vehicle price and trade allowance. In your case, whatever the sales tax difference is on approximately one thousand dollars. In Tennessee, that would be about $75 dollars. They collected $73.58 in taxes from you so, depending on tax rate, you are good from what I see.

Now some states assess a value type tax upon registration in addition to sales tax and that can be in the thousands.
I believe that's true if you're buying a brand new vehicle but I don't think that's the case when buying used in selling used but I need to check that out. I think that's the mistake they made here thinking it was a new vehicle they were selling.
 

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Discussion Starter #15
OK if they refuse to title and register then have them give you the truck and register and get it titled yourself. Have them credit you for those charges.

Contract was signed you paid taxes whether or not its right I dont know. They have to pick up the difference.

Make sure you are not getting a bill since you financed it too. Or did you get a bill already?

Did they take your trade already??
I'm not giving the truck back. Already had the bed sprayed and I searched high and low for what I wanted. Funny thing, the finance was through the dealership and I just got my first payment on the original finance agreement.
 

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Ok...Ok...I get it (situation), but have you contacted the dealer's Sales Manager, or General Manager to discuss (face-to-face)? If you want to keep the truck, or cancel the deal, these two people need to be on your side. Go there...work it out. All we can do (online forum) is relay our experiences & IMO it's best to work out problems in-person. Good luck, hope it works out.
 

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I'm not giving the truck back. Already had the bed sprayed and I searched high and low for what I wanted. Funny thing, the finance was through the dealership and I just got my first payment on the original finance agreement.
Ok you do have the truck. We dont know that from your post..

You have your first payment they need to pickup the difference.

Call the states attorney on them if you have too..

Anyway good luck..
 

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I believe that's true if you're buying a brand new vehicle but I don't think that's the case when buying used in selling used but I need to check that out. I think that's the mistake they made here thinking it was a new vehicle they were selling.
In NY it doesn't matter if it is new or used. You still only pay taxes on the difference, unless you buy it from an individual, then you pay on the full selling price when you register it.
 

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At $73 for sales tax, they miscalculated. Wow, 72 months @ 5.99% to pay $17,000, the interest will eat you up for that small sales amount.
 
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