More info...here is the back of the Purchase Agreement. I don't see anything there that lets them off the hook.
I luck out here in New York, My county this is the breakdown.And I thought Chicago only had a county tax , but it is 3/4 %. Crooks!
it says at the top these things are included on the reverse side. Taxes are included...they just put the wrong amount. I paid what they asked and agreed upon. We'll see what happens.
Well this the past about taxes. Taxes the Government will not care about the contract. The Buyer (New Owner) will have the legal responsibility to pay the taxes to them. If not paid, they could go as far as seizing the vehicle.
What it really says:
Now I have heard of vehicle seizures and forfeitures for unpaid income taxes or criminal investigations, but I haven't ever heard of a vehicle being seized over a sales tax dispute...probably because you can't get the title and registration without first paying the sales tax?
|If a motor vehicle is traded for a new motor vehicle, all-purpose vehicle or off-highway motorcycle in a purchase or lease agreement.||If a motor vehicle is traded for a used motor vehicle, all-purpose vehicle or off-highway motorcycle in a purchase or lease agreement.|
that was so 4 days and 4 pages agoThink I found the issue... And it with the trade in... On a used vehicle....
21 Does a trade-in reduce the price when calculating sales or use tax?
YES NO If a motor vehicle is traded for a new motor vehicle, all-purpose vehicle or off-highway motorcycle in a purchase or lease agreement. If a motor vehicle is traded for a used motor vehicle, all-purpose vehicle or off-highway motorcycle in a purchase or lease agreement.
Motor Vehicle Taxability - Dealers
A trade-in allowance reduces the price only if you are purchasing a:
- New motor vehicle, all-purpose vehicle or off-highway motorcycle; OR
This is where the dealer made their mistake. They calculated taxes for a new vehicle instead of a used one.
You already found it 4 days ago, in the Q&A section...that's why I quoted your post 4 days ago. It says the same thing in less words.Yes people said what they believed what it was.. I at least found the law. Took a bunch of research to do... But I found it. So, that is the proof of the statement.
I kind of agree with this. First we agree on the price of the vehicle. Then, when considering financing, I always have a limit to what I want my monthly payment to be. I ask them to give me a monthly payment amount under different finance or lease scenarios. The sale is based on that.Id consider it a scam if they made the deal to you with an agreed-upon monthly payment......... that they adjusted the taxes to fit a specific number. Then, after the sale, tell you that you owe more.
I dont know what the outcome is, legally but Id definitely say they are trying to pull a fast one on you.
It looks like they originally charged sales tax on the difference in the sale price and trade in allowance (correct) and now they're trying to turn around and charge sales tax on the amount financed (incorrect) because you had a previous loan balance. It doesn't matter that you still owed on the traded vehicle as long as the trade in allowance was more than the loan balance. Sales tax is based on the difference between the sale price and the trade in allowance, period. I think someone at the dealership is confused, so I would definitely go down and talk to the FINANCE manager.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