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.