Dealership miscalculated sales tax

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Interesting that you say that. I'm also in Colorado, and it took exactly a month to get my title.
32 days for me to hear about the holdup.

In Colorado I don't see the the value of negotiating on an otd price, I prefer to do it off of the sticker. The taxes are going to vary on where you reside and the dealer doesn't pay those just collects for the state and muni. Now I can see how an unscrupulous dealer could well underestimate the tax to get the deal done - knowing full well you and not the dealership are going to be on the hook to pay the correct taxes,
I don't see an advantage of working from the otd price - am I missing something ?
Only reason I prefer discussing OTD pricing is it makes quick calculations in the middle of negotiations easier.
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I thought MJ was going to take care of the taxes in CO? LOL
I have no idea what this means.

In Colorado I don't see the the value of negotiating on an otd price, I prefer to do it off of the sticker. The taxes are going to vary on where you reside and the dealer doesn't pay those just collects for the state and muni. Now I can see how an unscrupulous dealer could well underestimate the tax to get the deal done - knowing full well you and not the dealership are going to be on the hook to pay the correct taxes,
I don't see an advantage of working from the otd price - am I missing something ?
Lucky for me there is no sales tax in NH, and the 'tax' I pay is a registration fee based on the value of the vehicle. The dealer can't collect that, so calculating and OTD price is easy for everyone. I always insist on an OTD price, especially where dealer paperwork fees can vary by so much.
 

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I have no idea what this means.


Lucky for me there is no sales tax in NH, and the 'tax' I pay is a registration fee based on the value of the vehicle. The dealer can't collect that, so calculating and OTD price is easy for everyone. I always insist on an OTD price, especially where dealer paperwork fees can vary by so much.
If I lived in a state with a regressive tax like that, I would NEVER own a vehicle less than 10 years old.
IllAnnoy is a Kleptocracy as it is, but at least we don't have an annual oppressive tax on chattel property.
Technically,"Sales Tax" itself is a "Retailer's Occupation Tax" and is the sole responsibility of the seller, not the buyer. They are required to pay it and have no actual authority to collect it from the buyer... Its just a part of doing business and thus part of the price. It is calculated separately for clarification. ( to be generous)
 

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If I lived in a state with a regressive tax like that, I would NEVER own a vehicle less than 10 years old.
IllAnnoy is a Kleptocracy as it is, but at least we don't have an annual oppressive tax on chattel property.
Technically,"Sales Tax" itself is a "Retailer's Occupation Tax" and is the sole responsibility of the seller, not the buyer. They are required to pay it and have no actual authority to collect it from the buyer... Its just a part of doing business and thus part of the price. It is calculated separately for clarification. ( to be generous)
Well, I pay about $500 the first year to register and it goes down from there. That's pretty much all the tax I pay on my vehicles. I also pay about $8,000 a year in property taxes on my primary residence. No income tax, so that's the primary burden that I suffer, minus gas tax and meal tax.
 
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Well, I pay about $500 the first year to register and it goes down from there. That's pretty much all the tax I pay on my vehicles. I also pay about $8,000 a year in property taxes on my primary residence. No income tax, so that's the primary burden that I suffer, minus gas tax and meal tax.
Wow! For decades we would use our summer homes in NH and come from Massachusetts to purchase anything of high cash value to avoid our taxes. Register and insure our cars too for the same reasons. Looks like that changed drastically! Your property taxes are as bad as mine are now. So much for ā€˜live free or dieā€™ eh...
 


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Wow! For decades we would use our summer homes in NH and come from Massachusetts to purchase anything of high cash value to avoid our taxes. Register and insure our cars too for the same reasons. Looks like that changed drastically! Your property taxes are as bad as mine are now. So much for ā€˜live free or dieā€™ eh...
Well, considering I pay no income tax itā€™s not all bad. Iā€™m also in a $450k home. So thereā€™s that too. Nashua is on the higher side for taxes considering what we get out of it. Iā€™m looking to move ASAP.
 

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Sometimes the dealers add fee's, fuel charges, yadda, yadda, yadda.

Just gotta be sure to look out for those.

Yep, you have to be aware. You can see that as an Z plan buyer the dealer cannot charge me the "Dealer service and Delivery fee" or the "Sales associate fee" . They make it look like they are a fixed part of the contract, and I bet most people pay them.

I can say for sure that they are also negotiable. When I purchased my Focus RS which was not AXZ eligible, these were part of the negotiations. I agreed to the Sales associate fee but not the Dealer service one. Most all dealers were getting ADMs for the RS at the time. I paid MSRP and the sales associate fee even though I am sure he would have gotten his money one way or the other. Mine was the second one the dealer sold, The first one went for MSRP +5K ADM. ?


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If I lived in a state with a regressive tax like that, I would NEVER own a vehicle less than 10 years old.
IllAnnoy is a Kleptocracy as it is, but at least we don't have an annual oppressive tax on chattel property.
Technically,"Sales Tax" itself is a "Retailer's Occupation Tax" and is the sole responsibility of the seller, not the buyer. They are required to pay it and have no actual authority to collect it from the buyer... Its just a part of doing business and thus part of the price. It is calculated separately for clarification. ( to be generous)
In Colorado auto dealerships are licensed and are required by law to calculate and collect all applicable sales and use tax. The sales tax can have multiple components - state, county and local, based on a % of the selling price, where I reside the current sales tax is 8.6% , so on my Ranger purchase I paid some $3k in taxes, and then when you register the vehicle you pay your county a fee (annual) - in my case over $800 .
But as the OP indicates he signed an affidavit that protects the dealership in case of an error and the DMV won't give him tags unless the proper tax is paid. The dealer knowing this could have deliberately underestimated the tax to close the deal - most businesses though use POS SW that calculates taxes correctly and there is auto dealer specific SW to deal with this.
But I'd never negotiate from the OTD price and if going over the paperwork the dealer tries to put in add ons like dealer prep and handling I say the remove or I hit the pavement.
So the buyer bears some responsibility for understanding what their applicable tax rate is - if only because they are ultimately going to have to pay it. Were I the OP I'd contact the state attorney general of co and lodge a complaint against the dealership.
 
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I have no idea what this means.
It's a tired tripe from people who have no understanding of anything that the sin taxes from legalized marijuana were to take care of the entire state budget
So the buyer bears some responsibility for understanding what their applicable tax rate is - if only because they are ultimately going to have to pay it. Were I the OP I'd contact the state attorney general of co and lodge a complaint against the dealership.
Which I will be doing Wednesday, assuming all goes well @ the county offices.
 

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It's a tired tripe from people who have no understanding of anything that the sin taxes from legalized marijuana were to take care of the entire state budget


Which I will be doing Wednesday, assuming all goes well @ the county offices.
It been a long and tedious road for you. It always seems there are always complications. That how differing taxes based on address boggle the mind. I hope you have better luck dealing with service departments!

In Ontario, it is possible to do the OTD price but it only really seems to work if you're talking to multiple dealerships to know if your are actually getting a bargain. So for me I don't care how or what they fluff into the contract because ultimately I'm comparing apples to apples. COVID has offered some interesting effects in negotiations.

Good luck with all of this!
 
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It been a long and tedious road for you. It always seems there are always complications. That how differing taxes based on address boggle the mind. I hope you have better luck dealing with service departments!

In Ontario, it is possible to do the OTD price but it only really seems to work if you're talking to multiple dealerships to know if your are actually getting a bargain. So for me I don't care how or what they fluff into the contract because ultimately I'm comparing apples to apples. COVID has offered some interesting effects in negotiations.

Good luck with all of this!
Thanks.

I've got a good service department local, no worries. Didn't use the dealership I had previously purchased my Fords from as was internet price shopping. Lesson learned, in the 8 cars I've purchased from dealerships I've never once had this happen, but I'll be verifying sales tax from now on.
 

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Thanks.

I've got a good service department local, no worries. Didn't use the dealership I had previously purchased my Fords from as was internet price shopping. Lesson learned, in the 8 cars I've purchased from dealerships I've never once had this happen, but I'll be verifying sales tax from now on.
I have never heard of a dealer doing this either, but I have a hard time believing that this was an honest mistake. I could be wrong, but it sure does look like this sales manager figured out a way to create a more attractive OTD price. What I have had happen, on two different occasions, was a finance guy at a dealership try to steal the tax credit on my trade-in. In each case, I had calculated what the OTD price should have been and when the dealers OTD price was @ $800 - $1000 higher, it was time to go line-by-line through the balance sheet and find the issue. One of the finance guys was very apologetic and corrected the ā€œmistakeā€. The second guy was a lot more creative and unethical. With him, we had traded in a vehicle on a certified used car. What he did was try to slip in an extended warranty that upped the certified powertrain warranty to a bumper-to-bumper warranty for the exact cost of the trade-inā€™s tax credit. He claimed that since I owned the trade-in outright, the State of Arizona law was forcing him to treat the trade-in as a dealer purchase, thus voiding any tax credit. LOL, I know it sounds strange, but he was unable to produce a copy that that Arizona Statute. It took a bit of arguing to have his correct the balance sheet, but he finally did.
 
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I have never heard of a dealer doing this either, but I have a hard time believing that this was an honest mistake. I could be wrong, but it sure does look like this sales manager figured out a way to create a more attractive OTD price. What I have had happen, on two different occasions, was a finance guy at a dealership try to steal the tax credit on my trade-in. In each case, I had calculated what the OTD price should have been and when the dealers OTD price was @ $800 - $1000 higher, it was time to go line-by-line through the balance sheet and find the issue. One of the finance guys was very apologetic and corrected the ā€œmistakeā€. The second guy was a lot more creative and unethical. With him, we had traded in a vehicle on a certified used car. What he did was try to slip in an extended warranty that upped the certified powertrain warranty to a bumper-to-bumper warranty for the exact cost of the trade-inā€™s tax credit. He claimed that since I owned the trade-in outright, the State of Arizona law was forcing him to treat the trade-in as a dealer purchase, thus voiding any tax credit. LOL, I know it sounds strange, but he was unable to produce a copy that that Arizona Statute. It took a bit of arguing to have his correct the balance sheet, but he finally did.
Which is why I'll be filing a complaint with the state AG and possibly Motor Vehicle Board. Just in case this is a general tactic of theirs.

People swear they know good car salesmen. I think it's more so that they don't know the shifty things about them. Can't seem to ever find one.
 

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Well, I pay about $500 the first year to register and it goes down from there. That's pretty much all the tax I pay on my vehicles. I also pay about $8,000 a year in property taxes on my primary residence. No income tax, so that's the primary burden that I suffer, minus gas tax and meal tax.
Reminds me of when my grandparents, living on social security, were forced to move out of NH due to property taxes. They were proud 2nd generation granite state residents. At the 4th generation level they sadly moved.
 

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Selling cars has two appeals: No hard labor and potential to make decent money. The only requirements are "can you form a sentence?" and "do you take a shower daily?"

There is no other redeeming qualities about it. It is only one of a few professions left where the more ignorant the customer the more money you make. The rest of the world moved on long ago to "Here is the price" and not having to resort to pretending to be a third world country bizaar haggling merchant. My anecdotal life observations are most of the older crowd basically lacked any other skill set and it beats being a manager at McDonalds. Like I can get the retired person just making some cash on the side, or the young cat financing his way through college. But Bob with the receding monk hair line who has been doing it for 20+ years pains me. It is like watching a husk of a human walking around.

No one reflects back on Uncle Chuck and his supreme legacy of selling cars and master fleecing skills.
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