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Dealer scam?
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Huh?
The Dealer assigned the finance contract to the Bank. While a finance charge is charged on the total cost, including the sales tax, the Dealer will get none of it. The Bank will make a small interest rate (whatever your APR is) on the $2,000 for 36 months. Yes, the Dealership might get a small referral fee from the Bank for assigning the deal to the Bank, which is not always the case, but I imagine the "additional bucket of money" and "pure profit" you refer to is probably less than a few hundred dollars, if anything.
As to your second point, the Dealer doesn't pay the taxes, the Dealer (like every other retailer) collects the taxes and transmits them to the State. Its like saying the sales tax on a six pack of beer is pure profit for the grocery store.
As to your third point, that you are banking that the Bank will not want the actual title is also wrong. The Bank just made an unsecured loan at a lower interest rate than is customary in comparison to a secured loan, and the Bank is out of compliance with the Federal Reserve (if a National Bank) or a State Financial Board (if a State Bank). Banks charge way more for unsecured loans (if they even make them, most don't) than secured loans; and Banks have guidelines with the Federal Reserve which govern their interest rates. These internal rules will compel them to call a default on the loan and ding your credit back to 500. So now, your unwillingness to pay the taxes makes the Bank's loan non-compliant with their regulatory agencies once they find out, and they will when the Bank doesn't get the Title. Heck, the Dealership is now in trouble with the Bank, and will likely rat you out within a matter of days.
You don't seem to understand how this process works, which might be good for you, because you can play dumb.
Yeah, hire a lawyer. Let us know what his retainer is. I'll bet you a cookie with a fat raisin in it that the lawyer's retainer is more than the $2,000. Yeah, whatever you do, don't talk to the Dealership, don't be nice, be a jerk, refuse to pay the taxes, don't cooperate with the Bank, and let the Lawyer handle everything. You've done all the internet research, and now know everything. Let us know how it works out.
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Yes, but you have to pay tax on it, like $35 or so I'm guessing.
Dear Shooter123,
Let it be. He isn’t interested in any advice that doesn’t fit his narrative. I’m sure that you have better ways to spend your time.
Let it be. He isn’t interested in any advice that doesn’t fit his narrative. I’m sure that you have better ways to spend your time.
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While I'll let the insults roll off my back, I'll ask you (or anyone) to find articles or testimony that supports your assertions. I've found multiple that support mine.
What To Do If A Car Dealer Says They Made A 'Mistake' On Your Contract
I always stress that car buyers read the contract carefully before they sign, but what happens when you leave the dealership feeling good about your purchase and the dealer calls and says they made a mistake? Are you obligated to go back and resign a new contract?
jalopnik.com
How to Bill for Uncollected Sales Tax
How to Bill for Uncollected Sales Tax. A small business that sells goods or services in a state with a sales tax must collect the tax from customers and regularly remit it to the state's department of revenue. When you're unable to collect sales tax from a customer, you can submit a second bill...
AND, I spoke to my friends brother who is a salesman at a dealership. He spoke to their finance guy who said they'd eat the error. So, all you naysayers who want to hurl insults, I say pony up some evidence, otherwise it's just your opinion with nothing to support it.
thats exactly it. when i bought my truck i had a number in mind i was willing to pay per month, and shopped based on that. i told the salesman this is the max im willing to pay per month on 72 months, you figure it out from there. took him 3 tries before he got a deal figured out. went to talk with the financing people, they told me they couldnt do the finance rate i was quoted and it was going to be $5.xx more a month, i told them either sort it out or ill walk away. end result is they figured it out. but yes, i was willing to walk away for $5 per month. it adds up to around $400 in the end.
$2k isnt a trivial adjustment in the payment, its right around $29 a month, and over the term ends up costing $2450. id be downright pissed about this. honestly id be telling them either they eat it, or that if the mistake is grounds to void the contract they need to reimburse you for improvements (the bed liner) and return your trade in. if your trade is already gone its going to put them in a tough spot.
where i am (bc canada) the title is required for the owner to register and insure the vehicle. the dealer cant hold the title (unless the vehicle is a lease, but thats a different deal) or else the vehicle cant be driven off the lot. car dealers of any sort, just like any retail business, is responsible for collecting the taxes. private vehicle sales have the taxes paid when registering the vehicle.
i worked for a company whose accountant misinterpreted some sales tax guidelines, and during a tax audit the government said nope that doesnt apply and the business was responsible for taxes that hadnt been collected. there was no legal recourse to go after the clients for the sales taxes they should have paid, but wernt charged. this is almost the exact situation your in.
my only advice would be to go talk to the sales manager. if you negotiated based on the monthly payment, tell them, and make sure they know that if the bottom line was higher it wouldnt have been a deal. i would also make sure you have any receipts you have for the bed liner or anything else you have done, along with proof of the payment you have made. i would be prepared to cancel the deal and walk away, but make sure they are reimbursing you for everything, including any fees incurred in financing. i would think that the costs to them associated with canceling the deal that they will be willing to play ball.
By owner, do you mean bank or dealer? The dealer normally transfers the title, and since the owner is whoever holds the pink slip, I would bet that means the dealer. Possession is 9/10 the law lol, time for the dealer to pay up.
Mr. Gherbert did not point out the Buyer, he pointed out the Owner.
2017 Chevy Colorado Z71 Extended Cab 4WD Summit White
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Actually the owner until you purchase the vehicle... Was GM...... A title is issued by the State DMV to the Owner (Buyer) of the vehicle …
That is the person with the legal responsibility for the taxes.
The Vehicle has a Manufacturer's Certificate of Origin (MCO) First...Not a title until purchased.
I thought it was used? This MCO thing only works for a new vehicle.
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Good for you, I hope this all works out in your favor. These dealers take advantage of people every day.
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@Smawgunner
Any news? I'm on the edge of my seat.
Any news? I'm on the edge of my seat.
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Not yet. I should be talking to our attorney tomorrow. I get 30 minute free consultation through my employer. Filed through the Attorney General but that'll be a joke. They provide a mediator but make no judgments or render any decisions. The dealership is radio silence. They have not sent anything to me in writing as of yet. Stay tuned 😆
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🍕🍻 waiting 😁
2017 Chevy Colorado Z71 Extended Cab 4WD Summit White
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Simple points:
1) Sales Tax Rate in Ohio 5.75%. So $2,000 in sales tax would be for a purchase of $34,782.60
Sales Tax already paid was $73.58 which is a sales tax for $1,279.65
2) A contract is legal and can not be changed without both parties agreeing.
3) Buyer of the vehicle is legally responsible for the taxes on the vehicle.
Most of us have either been debating Point 2 or 3 in this thread.
But point 1 has been neglected.... An additional $2,000 in sales tax is for an additional $34,782.60 in Ohio. Something here is really off.
1) Sales Tax Rate in Ohio 5.75%. So $2,000 in sales tax would be for a purchase of $34,782.60
Sales Tax already paid was $73.58 which is a sales tax for $1,279.65
2) A contract is legal and can not be changed without both parties agreeing.
3) Buyer of the vehicle is legally responsible for the taxes on the vehicle.
Most of us have either been debating Point 2 or 3 in this thread.
But point 1 has been neglected.... An additional $2,000 in sales tax is for an additional $34,782.60 in Ohio. Something here is really off.
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I think there is a county sales tax on top of that.
Not so simple points:
Add the $73.58 he already paid and it becomes 7.75% of $26,755.87.
That's not far off from the taxable price of $27,231.
Also gherbert:
Assuming the full 2% extra county tax, $2,000 is 7.75% of $25,806.45.
Add the $73.58 he already paid and it becomes 7.75% of $26,755.87.
That's not far off from the taxable price of $27,231.
Look up Contract Alteration. If there are terms/provisions allowing alteration then it can be changed without consent. There is also the chance that it could be voided.
Not entirely true. In the link you provided, it is explained that the purchaser is responsible for paying taxes when buying privately, but when buying from a dealer it is different because the dealer calculates and collects the taxes as part of the sale...which would be typical of a retail transaction where the seller is normally responsible for sales tax. Scroll back up a few posts, this is why I brought up that the website says Owner rather than Buyer.
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