Edmunds Answers questions

Is the car dealership trying to cheat me? HELP PLEASE!!

champloo — Fri, 01 Feb 2008 00:25:19 GMT

I really need some help here, please finish reading this and tell me if I am reasonable or not.

I brought this car last week, i negotiated with the salesperson and I mentioned that "I want to pay this much for this car and that will include everything I need to pay." OK, the salesperson agreed and they sell me the car for 28,000 dollars, which is the price I asked for and that should include everything, documents,taxes, destination and handling, all that, right?

Then, I went to register my car and get a tag. The lady works at the DMV told me that I haven't paid for the city sales tax, she show me the recipt of my car and under the city sales tax, it says "N/A" and I need to pay for it, the original price of the tag was $20 and now it goes up to $400 because of the tax. I decided not to pay at that time.

So then I asked some of my friends who brought cars from them, and they tell me that they never paid that much for a new tag. And the DMV lady told me that the car dealership usually collect all the taxes (city, county, state) when people buy a car.

Then I found on my county's website that says, "The dealer is required to collect sales tax due at their location." But, in my case, they didn't do it.

What do you guys think? Shouldn't the city sales tax be included in the $28,000 while county and state tax is already inclued? Now I am thinking they might try to let me pay that $400 so that they can make profit? Please tell me what do you guys think.

Sales tax on new cars in NY

kiwi_in_abd — Fri, 28 Mar 2008 08:30:48 GMT

For a resident of Indiana if I buy a new car from an authorised dealer in NY can I avoid paying sales tax in NY. Drive the car to Indiana on dealer supplier transit plates and then register it in Indiana & pay sales tax at that time ?

What to do when a finance manager tries to get more money after the deal is done ?

john246 — Mon, 14 Apr 2008 22:37:21 GMT

I told the finance guy I pay a 9.5% sales tax. He said my domical code showed that I pay 8.0%. 30 days later he calls to tell me that I owe $494.00 !!! and I can't get my tags until I pay. Help!!!!!

Yes he heard me. He had me at 9.5%. Car buying - tags.

john246 — Tue, 15 Apr 2008 11:54:11 GMT

When I didn't accept his offer and was leaving his office, that when he ask for my address again. Punched a few #'s on his keyboard, then offered me the 8.0% sales tax. I think he didn't want to lose a sale on the last day of the month at closing time????? Why did he wait over thirty days before he contacted me? I had a trade for $2000.00 and a downpayment of $1000.00

Thanks for your answer's

Had to buy a used car in Florida. I live in Ontario Canada. Can I get a refund on the Florida state tax paid.

porrell — Tue, 29 Apr 2008 12:52:21 GMT

Last month while on vacation in Florida I had major repairs to be done on my 1998 vehicle. The repairs were more than the vehicle was worth so I purchased a used 2004 vehicle. I paid the Florida state sales tax of 6% and upon returning to Canada I paid the Ontario sales tax of 8% to replate this vehicle.
I have all the documentation associated with this transaction.
Is there any way in which I could be refunded the tax which I had to pay in Florida.

Peter

What is the sales tax on a new vehicle if you live in Tripp, SD and buy the new vehicle in Worthing, SD?

mdmaag7 — Mon, 19 May 2008 21:17:48 GMT

car value $27,000 new

Do you pay sales tax on the destination charge of a new vehicle?

nova85 — Tue, 01 Jul 2008 10:23:14 GMT

For example, if a car costs $20K and destination charge is $500. Do you calculate sales tax on the $20K (20,000* 7%)or on $20.5K (20,500 x 7%)?

When a deal includes a trade in you pay less sales tax in some states - what about California?

juliette1 — Sat, 09 Aug 2008 20:05:03 GMT

I am buying a new car and will trade in an old one - do I pay sales tax on the full purchase price of the new car or sales tax on the purchase price less the trade in value - in California? Eg if the new car price is $20,000 the trade in is $3000 do I pay sales tax on $20,000 or the difference $17000?
thanks
Juliette 1

Do I have to pay GST if you purchase a car in Canada for export to the US?

hoop1a — Fri, 24 Oct 2008 18:27:16 GMT

I'm considering purchasing a new car in Canada because a different configuration is available there. I'm wondering if I can avoid paying the 5% GST, since I'm not Canadian and would be exporting the car immediately.

When dealing with incentives, why do you pay tax on the price of the car before subtracting any incentive cash?

Car_Confused — Tue, 02 Dec 2008 17:04:49 GMT

Dealerships charge Tax and License based on the cars price. Then the dealer will subtract any incentive cash being offered from this sub total.
Why don't dealers subtract the incentive cash from the negotiated price, and then calculate the tax and license?

Does California sales tax apply to Doc and DMV fees too?

garypen — Fri, 30 Jan 2009 16:58:32 GMT

Does California apply the sales tax to the price of the new car ONLY, or does it apply to Doc Fees and DMV fees too?

I can't imagine they would tax a state agency fee, although I suppose they might tax a dealer's doc fee.

I assume it is applied to the Destination Charge. Correct?

Thanks in advance.

What are the sales tax implications if an Illinois resident purchases a new car in Michigan?

wlloftis — Sat, 31 Jan 2009 08:24:36 GMT

My mother-in-law totaled her car while visiting in Michigan. She needs transporation and would like to buy a car in Michigan, but she is afraid she will be taxed in Michigan and Illinois.

What is the lowest dollar amount a family member can sell me a car for to minimize my sales tax without using a book value?

Rickpenz — Fri, 13 Feb 2009 15:58:05 GMT

If my cousin sold me his 2008 Honda for $1.00 I would have to pay sales Tax for the book value of around $11,000.00 that would be $1,100.00 ? how can I minimize the sales tax? What dollar amount would work to lower my sales tax.

The stimulus package includes a tax break for new car buyers. How will the government track new vs used purchases?

trav505 — Sat, 14 Feb 2009 07:51:18 GMT

A car buyer can deduct the sales tax from a new car purchase. I'm curious how the process will work. Will the IRS track all new car purchases and create a new tax form?
Thanks

In Wisconsin, if a car left in an estate is purchased by an heir, do they owe sales tax?

roveissatan — Wed, 08 Apr 2009 13:25:12 GMT

One of four sisters died leaving a vehicle in her estate, which was in a revocable trust. One of the remaining sisters wants to purchase the vehicle from the estate and wants to know if they will owe state sales tax on the vehicle.

I bought a car from CA and live in OR yet the dealership made me pay CA tax and said I can get it back when I title it in Oregon.

xlr_v — Fri, 29 May 2009 22:35:29 GMT

I bought a car from CA and live in OR yet the dealership made me pay CA tax and said I can get it back when I title the car in OR?

If I buy a vehicle in WY, and register it in MT, do I have to pay sales tax in WY, even tho there's no tax in MT?

maggie_roth — Sat, 27 Jun 2009 20:14:25 GMT

The sales tax in WY is 6%, and MT has no sales tax. If I buy a car in WY, do I have to pay taxes in WY, even though there's no sales tax in MT?

I bought a used car from another American while being deployed in Kuwait. Do I have to pay sales tax after import?

mwiernicki — Thu, 20 Aug 2009 18:39:11 GMT

I am in the Army and was stationed in Kuwait with the Army. I bought the used car from another soldier and it is originally titled in Georgia. I have moved back to Texas and imported the car. Do I have to pay sales tax or is there some kind of exemption I can take advantage of?

What is the sales tax rate in Lake County, Illinois for a used car purchase?

lysah — Mon, 24 Aug 2009 12:27:58 GMT

My dealer is charging me 8%. The State Tax Rate finder says it's only 7%. Is there anything legit that they might be adding? Also are you supposed to be taxed on the documentation fees?

Taxes on New York vehicle but live in NJ.

foxykitte6 — Thu, 03 Sep 2009 15:48:59 GMT

I live in NJ and I am interested in a car located at a New York Dealer.

I would like to know what taxes I would have to pay on the vehicle.

New York or New Jersey or Both?

Thank You

Where can I find a list of cars and trucks eligible for IRS section 179 deductions?

aband — Tue, 27 Oct 2009 22:17:48 GMT

Looking for a list for tax section 179.

I am moving from Missouri to Florida. Is it cheaper to buy a new car in Missouri and drive there than buying there

biemowo — Wed, 19 Mar 2008 17:46:46 GMT

I am moving from Missouri to Florida. Is it cheaper to buy a new car in Missouri and drive there than buying there

Taxes on a leased car

ka2shaz — Wed, 26 Mar 2008 13:07:58 GMT

I have never leased a car, so I am not sure how taxes work. If I lease a car for 40,000 and the tax rate in my state is 6%, do I have to pay the 6% on all of 40,000 or just the depreciation value?
Thanks!

Do I pay Federal Tax on full new car price or on actual sale price which is $4,000.00 less after rebates?

jgloss — Thu, 27 Mar 2008 06:57:51 GMT

I am looking to buy a 2007 new Chevy Impala, in New York state. Asking price is 19,000.00. With rebates my price will be 15,000.00. Do I pay tax on 19 or 15K?

Car Tax Refund? GST? Importing from US to Canada.

bb2008 — Thu, 27 Mar 2008 13:35:28 GMT

I want to import a new car into Canada from the US. I paid the state taxes. How can I get a refund for the taxes I paid in the US since I will have to pay GST and PST?

Hello, I am interested in buying a Lexus RX 400h in US and export it to Greece. Is there any state tax or any other?

nchatzi — Thu, 27 Mar 2008 18:00:50 GMT

and also do you know if Lexus dealers in general make exports.

Finally do you know any serious company that will handle the whole proccess?

Thanking you in advance.

Kind regards,

Nikos Chatzinikolaou

Who pays the sales tax when a private sale of a vehicle takes place?

lmarsh — Wed, 02 Apr 2008 16:36:16 GMT

I just sold my old van and was wondering if I have to pay sales tax on the money.

With a private party sale, does sales tax come into play?

eggailey — Tue, 15 Apr 2008 22:14:07 GMT

If I sell a vehicle to a private party do I need to add sales tax?

Should I have to pay sales tax when I sign a lease agreement? Why or why not?

jsh08 — Mon, 28 Apr 2008 00:04:07 GMT

I'm just confused about this issue. If I am not technically "buying" a car, then why does the dealer list "sales tax" as one of the things I have to pay? Then, if I decide to buy the vehicle after the lease is up, will I have to pay tax again?

Can dealerships charge sales tax on document fees?

andreaquigley — Thu, 12 Jun 2008 13:06:47 GMT

I live in Evergreen Park, IL and bought a car from the city in which I live. I was going over the paperwork and realized I was charged sales tax on the document fee. Is this legal?
Thanks for your response.

Does Florida charge sales tax for the purchase of a Toyota Prius hybrid?

jimig1 — Sun, 21 Sep 2008 09:49:56 GMT

Trying to decide if I should buy car in Ct or Fl. Planning on dual residency.

When you sell your car instead of trading it in, does the seller have any tax liabilities?

rchristian — Mon, 01 Dec 2008 17:19:05 GMT

I know you pay taxes when you buy a car but do you pay taxes when you sell it on your own instaed of trading it in?

What kind of "other costs" can I expect when buying a new car?

Rashiki — Sat, 10 Jan 2009 14:26:10 GMT

Hi,

I've been reading up as much as I can on new car buying and I know that there will be a delivery charge added to the negotiated price (correct?) and sales tax (simple sales tax?), but what other costs should I expect? I hear the terms "title" and "registration" (which is just DMV registration, correct?), but are these the same? Are there any other costs?

And as far as sales tax, can I get a lower sales tax if I buy a car in a different state, or even a different area of the same state?

Thanks!

Does the auto sales tax deduction that is included in the President's Economic Stimulus Plan apply to leases?

spedprof — Fri, 27 Feb 2009 10:48:28 GMT

The President's Economic Stimulus Bill, passed by Congress, includes a tax deduction for the sales tax paid on most automobile purchases. Does that apply when leasing a car? Also, if the sales tax is rolled into the payment, does that deduction apply?

I am confused, are sales tax and car loan interest deductible?

carman2009 — Sat, 18 Apr 2009 04:08:53 GMT

what did legislator say?

WilI the Cash for Clunkers $4500 voucher be treated as trade in or rebate for sales tax purpoes?

doggie76 — Fri, 10 Jul 2009 12:48:50 GMT

I'm looking to buy a new car with my C4C minivan. Will the $4500 be treated as a trade in (thus discounting my taxable base) or rebate (taxed on full price before rebates here in GA)?

Will a person have to pay income tax on the Cash for Clunkers voucher?

reggie92 — Thu, 16 Jul 2009 18:05:01 GMT

Cash for clunkers.

Is the Cash for Clunkers credit taken off as part of the negotiating price of the car?

robkc84 — Tue, 21 Jul 2009 10:22:52 GMT

I am about to buy a car in NJ. Is the 7% sales tax applied to the purchase of the new car before or after the C.F.C credit?

7% sales tax on $24,500 or 7% sales tax on $20,000?

DO YOU HAVE TO PAY TAXES (TO THE DEALER) ON THE CASH FOR CLUNKERS CREDIT?

margop57 — Fri, 24 Jul 2009 09:09:52 GMT

Do you have to pay taxes (to the dealer) on the cash for clunkers credit?

I moved a leased car from NY to CA after having the car for over a year - what tax do I have to pay?

dg1917 — Sat, 29 Aug 2009 19:52:44 GMT

I leased a car over a year ago and initially registered it in NY. The lease payment included my repayment of tax (which was prepaid at registration by the dealer). I recently moved to CA and the bank increased my lease payment significantly, claiming that I have to pay tax on my original payment (which included NY tax). I have no problem paying tax, but I told them that my payment already included NY sales tax so I should only have to pay the difference in the increase in tax (not tax on the whole payment). The bank is saying otherwise. What can I do?

Thinking of purchasing a 2010 Honda Accord EX. l 'm not sure if I should get one with navigation. Any feedback on system?

fred109 — Tue, 24 Nov 2009 15:30:22 GMT

Should I get an Accord with navigation system or not? Any feed back with current owners would assit in my decision.

How is sales tax calculated?

2ndlife — Thu, 27 Dec 2007 19:49:58 GMT

If I buy a car without a trade in and put $10,000 down, will my sales tax be the same compared to putting $5000 down and traded in a car valued at $5000?

In other words, is sales tax calculated on the entire price of the new car or on price of the new car minus trade-in? Put it yet another way, does it matter whether I have trade in or not?

BMW lease assumption in CA. Is sales tax due when I register with DMV?

63__19 — Thu, 20 Mar 2008 16:10:28 GMT

Considering assuming a BMW lease. I am being told the current payment includes sales tax. I called CA DMV and was told that sales tax is due when I register the vehicle. Is that correct? On what sales price would the new tax be based?

Can I fold Illinois lease sales tax into my lease?

ktabel01 — Wed, 02 Apr 2008 08:04:53 GMT

I live in Chicago and am interested in an Infiniti G35. THere are some nice lease offers, but our fine state's tax laws are posing a problem. As we are charged tax on the entire car's value, it seems to be due up front. technically it seems the dealer owes it up front, but obviously passes it on to us. Now, it is standard for that to be rolled into your net cap cost and then applied to the monthly payment, or is that a large check you have to write before you leave the lot?

Price for Honda Civic LX

shikhil — Fri, 04 Apr 2008 22:27:49 GMT

Hello,

I am planning to buy a new Honda Civic LX very soon and looking for a good deal. I got a quote of $18,400 (including taxes and registration) in the state of NJ....I want to know whether it's a fair deal or I ca get a price less than that...

I'm buying a car in GA from an individual and I live in AL, what are the sales tax requirements

lauramaloy — Thu, 17 Apr 2008 20:13:08 GMT

trying to find out what fees and taxes this purchase will entail

I want to import a new car into Europe from the US. Which state does not require me to pay sales tax, or how can I get back any taxes paid?

fogyula — Fri, 30 May 2008 07:41:46 GMT

Importing cars from Us to europe

Sales tax, cash back?

scooper12 — Sun, 19 Oct 2008 12:01:13 GMT

Hi
As a newbie on this market. and having a certain budget,does the agreed price with the car dealer includes the state sales tax or do I have to add that on top and explain to me what actually cashback means in a scenario that I pay cash for the new car ( I am a tourist who do not have a ssn so will not finance or able to)

Thanks

Ronald

I live in MS (tax at 7%)/ Thinking about buying a car in La.(tax at 9%) Do I pay taxes in LA and again in MS?

adrianbritt — Mon, 15 Dec 2008 05:27:24 GMT

I found a car in Baton Rouge, La. stickered for $36,000, after rebates and incentives it is down to $29,000.The dealership says "I pay taxes in La. and the state of La. will even up with the state of Ms". I thought I had to pay the taxes in the state that the car will be registered? Also the dealer told me I have to pay 9% tax on the original $36,000 and not the $29,000 after the rebates(or the amount financed). Any advice at all would be helpful. It is a good price for the car even with the La. tax but I don't want to pay it if I don't have to. I need an answer quickly, Please!!

I am moving from IL to VA and I need to transfer my car which is 10 months old. I paid sales tax when I purchased.

roky — Sun, 22 Feb 2009 13:53:15 GMT

I am moving from IL to VA and I need to transfer my car which is 10 months old. I paid sales tax when I purchased my car from dealership. Do I need to pay sale and use tax in VA or not?