[Mietro]

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
This is the correct amount of sales tax shown. You only are required to pay tax on the difference between the value of your trade and the price of the new vehicle even if you owe on your trade. If they would charge you sales tax on the net value of your trade(trade-payoff) that is pyramiding since you already paid sales tax on your trade. Also all dealers have software that calculate this automatically. You have legal standing here.

 

[Smawgunner]

Here is where we are on this. BBB complaint has gone stagnant. The AG uses a group called AUTOCAP for dispute resolution. I'm attaching my complaint. I'm supposed to talk to a lawyer but it keeps getting postponed. Stay tuned!

 

[MidnightZ21]

Here is where we are on this. BBB complaint has gone stagnant. The AG uses a group called AUTOCAP for dispute resolution. I'm attaching my complaint. I'm supposed to talk to a lawyer but it keeps getting postponed. Stay tuned!
View attachment 405212

I thought you had posted that you talked to a friend's brother at the dealership and they were eating it?

Also, BBB complaints are a waste of time.

 

[Smawgunner]

I thought you had posted that you talked to a friend's brother at the dealership and they were eating it?

Also, BBB complaints are a waste of time.

He worked at another dealership and talked to his manager. The manager said they'd eat it if it was their mistake.

 

[rotaryenginepete]

4. Report their fraudulent over-tax calculation and pocketing of the difference on every trade in contract they have ever written - all of their calculations of tax on trade-ins is fraudulently collected. From the Ohio Department of taxation (link below):
Item 21 - a trade in reduces the tax base (makes sense, otherwise they would be taxing the same transfer twice when they resell your trade in). They are collecting tax on the trade in value and pocketing the excess.

Motor Vehicle Taxability - Dealers

tax.ohio.gov

trade in allowance only works on new vehicles, this is a used vehicle purchase. Otherwise, I like the approach of holding them accountable for not fulfilling their end of the contract.

 

[indy9231]

I'm no lawyer but I stayed in a Holiday Inn Express last night. I say [email protected]&!k them.

 

[FlyFishStout_CO]

Any updates on this?

 

[Smawgunner]

Any updates on this?

Still waiting on a call from my attorney. The dealership attorney sent me a letter again stating if I dont pay up, they are withholding the title. I'm wondering why for 2000.00, they have alienated a potential future buyer...let alone my wife and family and friends will never go there...why they're wasting a lawyers time (retained of not), and risking poor publicity through BBB, Attorney General etc over this. My guess is that GM Financial isn't going to wait too long before they get upset that they've loaned $ and don't have collateral in the terms of a lien title in my name. Stay tuned.

 

[MyColorado77]

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.

How did this work out for you?

 

[Smawgunner]

How did this work out for you?

STILL waiting for a call from an attorney. Stay tuned.

 

[White016]

STILL waiting for a call from an attorney. Stay tuned.

With your luck you'll get a bill from him without even talking to him.

 

[Smawgunner]

OK....the moment everyone has been waiting for:! I spoke to my attorney (free through our EAP). The purchase agreement is binding and will stand. The taxes they charged albeit incorrect, the bottom price that was financed etc will stand. HOWEVER, if I don't pay up, legal or not, the dealership will file with debt collectors and refuse to do any of the title work, even though I've already paid them to do so. Extortion? Could I fight it? Yes....at what cost?...probably more than the 2000.00. Could I win? Maybe, that's up to a judge. Not you, not me, but a judge.

I have a feeling that GM Financial would eventually bring the hammer down on the dealership for green lighting the loan without following up with a lien title in the borrowers name. I would love to hear that conversation. End of story.

 

[Y E T I]

OK....the moment everyone has been waiting for:! I spoke to my attorney (free through our EAP). The purchase agreement is binding and will stand. The taxes they charged albeit incorrect, the bottom price that was financed etc will stand. HOWEVER, if I don't pay up, legal or not, the dealership will file with debt collectors and refuse to do any of the title work, even though I've already paid them to do so. Extortion? Could I fight it? Yes....at what cost?...probably more than the 2000.00. Could I win? Maybe, that's up to a judge. Not you, not me, but a judge.

I have a feeling that GM Financial would eventually bring the hammer down on the dealership for green lighting the loan without following up with a lien title in the borrowers name. I would love to hear that conversation. End of story.

So, what are you going to do? Pay the $2k? Or?

 

[gherbert]

Important Information to remember

• The buyer will pay sales and use tax on the purchase price of the vehicle.

TITLING A USED MOTOR VEHICLE IN OHIO
The seller must complete the 'assignment of ownership' portion on the back of the title and then present it to the buyer to finalize the transfer.

What Do I Need to Bring to the Title Office?

• Original title assigned to the buyer
• Application(s) for Certificate of Title to a Motor Vehicle (form BMV 3774)
• Acceptable identification (please contact your County Clerk of Courts Title Office for details)
• For out-of-state titles only, an out-of-state vehicle identification number (VIN) inspection; inspections can be obtained at any (click HERE for current fee) or any licensed Ohio motor vehicle dealership (call ahead for fee)
• Sales tax on the purchase price (sales tax rates by county are available HERE)
• Payment for title fees, including a lien holder notation (if applicable)

State of Ohio BMV


Since the Buyer has not paid the sales tax. Title can not be issued as per The State of Ohio.

Yes dealership screwed up... But, Buyer is responsible. Would be nice if dealership stepped up.

 

[rotaryenginepete]

Important Information to remember

• The buyer will pay sales and use tax on the purchase price of the vehicle.

TITLING A USED MOTOR VEHICLE IN OHIO
The seller must complete the 'assignment of ownership' portion on the back of the title and then present it to the buyer to finalize the transfer.

What Do I Need to Bring to the Title Office?

• Original title assigned to the buyer
• Application(s) for Certificate of Title to a Motor Vehicle (form BMV 3774)
• Acceptable identification (please contact your County Clerk of Courts Title Office for details)
• For out-of-state titles only, an out-of-state vehicle identification number (VIN) inspection; inspections can be obtained at any (click HERE for current fee) or any licensed Ohio motor vehicle dealership (call ahead for fee)
• Sales tax on the purchase price (sales tax rates by county are available HERE)
• Payment for title fees, including a lien holder notation (if applicable)

State of Ohio BMV


Since the Buyer has not paid the sales tax. Title can not be issued as per The State of Ohio.

Yes dealership screwed up... But, Buyer is responsible. Would be nice if dealership stepped up.

What are you talking about?
The buyer already did pay sales and use tax, per the purchase agreement. It is not his fault they made an error in how much.

So he can fight it if he wants to. They cannot legally hold the title hostage, but the cost of holding them accountable is probably higher than just paying up...so extortion.

 

[Smawgunner]

So, what are you going to do? Pay the $2k? Or?

Check is in the mail.

 

[rotaryenginepete]

Check is in the mail.

You should have had it printed out like a publisher 's clearing house check poster LOL

That would be great publicity.

 

[JasonZR2]

So the moral of the story is that a contract with a car dealer isn't worth the paper it's printed on. That's my takeaway anyway.

 

[gherbert]

I totally agree the dealership screwed up and should make good.
And yes since they screwed up the contract can be voided now.

But, The taxes are the legal responsibility of the Buyer to pay.
If I said I was going to pay them for him and never did. The State of Ohio would not issued the Tittle either.

Yes a judge might get an order for the dealership to pay the taxes. But that could take months to years before that happens. And then after that is issued, it can take months or years to get the money.

Contract Law governs the Contract.

Tax Law governs the Taxes.

They overlap in this case but are 2 different things. The joys of the law. Like the Vehicle & Traffic Law, you can be legal under on section of it and illegal under another. All depends on who in enforcing or what section they want to enforce.

 

[rotaryenginepete]

I totally agree the dealership screwed up and should make good.
And yes since they screwed up the contract can be voided now.

But, The taxes are the legal responsibility of the Buyer to pay.
If I said I was going to pay them for him and never did. The State of Ohio would not issued the Tittle either.

Yes a judge might get an order for the dealership to pay the taxes. But that could take months to years before that happens. And then after that is issued, it can take months or years to get the money.

Contract Law governs the Contract.

Tax Law governs the Taxes.

They overlap in this case but are 2 different things. The joys of the law. Like the Vehicle & Traffic Law, you can be legal under on section of it and illegal under another. All depends on who in enforcing or what section they want to enforce.

Still not sure what you're talking about. There's no "overlap". If the contract stands, then the Buyer already did pay the taxes and fulfilled his responsibility. The dispute is not with Ohio, the state doesn't care who pays as long as they get paid. They would most definitely issue the title if and when the dealer did the paperwork and paid them.

This was clearly extortion. It was big enough to hurt but small enough to not be worth the fight.