Question About Paying Sales Tax on the New Car Rebate
Hi Tony,
I just wanted to say thanks for all the useful information on your website. I have used it to my advantage. I am purchasing a new car and have picked out the one I want, but I did make a mistake by telling them I was going to trade in my car. I however then went out and got some quotes without letting this info be known. I then went back and have told the dealer forget the trade-in, this is the price I am willing to pay.
Here is my question. On the dealer quote he gave me he is charging sales tax on the car before the cash back and owner loyalty rebate, is this right or legal or acceptable? This is a significant amount of money because these add up to $4,000. Thank you in advance for your help.
Brian W.
Hi Brian,
The rebates are the same as cash down. You have to pay sales tax on the selling price of the car. You take the selling price of the car plus title and registration fees plus sales tax. This gives you the total amount of the sale. Then you subtract the rebates and pay the balance either through financing or cash.
It sounds like the dealer is doing it the right way.
All my very best to you...
Tony Iorio
http://www.insidercarsecrets.com
Question About How to Back Out of a Car Deal!
Hi Tony,
I've visited your website and found a TON of useful information! I just wish I would have checked it out before going to the car dealer.
Here's my dilemma: 3 days ago I was at a local Mazda dealership here in Toronto, Canada. I was there to test drive a Mazda RX8, and before I knew what was happening I ended up signing up some papers. I left an $800 deposit, my original car ownership papers ( my 2001 Nissan Maxima that I wanted to trade-in), and a copy of my driver's license.
The Sales Manager is trying to get me approved from the banks for financing the car. Anyways, out of curiosity I went to the Mazda dealership near my friend's house in another town and found another RX8 with lower mileage and at a lower cost.
I'm now afraid that if I tell the dealer in my area that I'm no longer interested in the car I might loose my deposit. what should I do? I'm not yet approved for the car financing, so is there any way in which I can get my deposit and my 01 Nissan ownership papers back?
Once again thanks for your website and your help.
Dan
Hi Dan, Dan, I don't know what you signed and how binding the documents are. Also, I am not familiar with Canadian law. The best thing to do is to contact the first car dealer and tell him you changed your mind and that you want your deposit back. Some dealers will fight you on this, and others will try to accommodate you in order to build good will with you hoping that you'll come back in the future to do business with them. However this works out for you I probably don't have to remind you, that in the future, don't allow yourself to be pushed into doing anything you're not ready for. Car sales people are actually trained to do this to you. So be careful. Think things through before you so willingly sign documents and hand over your hard earned cash!Good luck . . . Tonyhttp://www.insidercarsecrets.com
