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Smart Shopper Smart Shopper-Archives Any Questions for a Car Dealer? 
16377 messages, Last post on Feb 11, 2006 at 4:59 AM
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Replying to: volvodan1 (Jan 22, 2006 11:11 am) |
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Replying to: volvodan1 (Jan 22, 2006 11:11 am) And if you live in the City of Chicago, you get to pay both city and county taxes on a new car lease. I don't know what the rates are today but 10yrs ago that meant you paid 13% sales tax on a LEASED vehicle. Oh, and the city charged you a wheel tax of $90/yr (that one has prolly gone up too). Welcome to Illinois!!!!
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Replying to: bretfraz (Jan 22, 2006 11:45 am)  USA Today So if you really pay double on the lease residual that is effectively 18%! |
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This is a nation-wide forum. What is the purpose of these 'tax' discussion? Each state has widely varing applications of taxes on new, used, trade-in, lease, etc etc etc. It's counter-productive to discuss this, especially the ones that state 'No, that's not right, here is how it's done!'. When it only pertains to one state. Now, it would be fine for someone to ask 'How are taxes or fees or licensing applied to a such-and-such transaction in the state of XX'. Then let someone from State XX answer to the best of his knowledge. Otherwise, most of the postings on this subject is just wasted bandwidth.
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Replying to: bolivar (Jan 22, 2006 1:14 pm)
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| I don't think the discussion is counter-productive and a waste of bandwidth (lying is counter-productive and I don't think anyone is doing that), the information is hard to follow since the context is confusing. What would be more productive is to have a sticky or a thread where people could share what they know about local sales tax laws, then organize it state-by-state so it would be a good resource for members. It could be edited and expanded as more info was available, ala Wikipedia. | |
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On a new car, tax is net of trade. On a used car, tax is calculated excluding any trade (new car dealers have a better lobby group) On leasing a car, all the sales tax is paid up front on the lease, rather than monthly. Ohio is fast becoming a state of old or less educated people, so they have to keep coming up with new ways to generate more tax dollars to keep the inefficient state government lurching along. |
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Replying to: steine13 (Jan 21, 2006 3:16 pm) So what? I understand why some dealers won't do in&outs, it's their choice, but I still don't see the problem. At least in MI, the dealer can tell the buyer to go climb a tree... "AS IS". Yeah, but let's face it, a lot of people have a major blind spot when it comes to "AS IS" or "NO REFUNDS" signs. They believe they are entitled to return anything, anytime and will turn the thing into a holy war if someone tells them they can't. |
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Ok, guess I started this whole tax mess with my original question about an "in and out."  So, here's some clarification on my situation and intent. Here in MO (Missouri), you don't pay sales tax up front on a lease but rather on each monthly payment. That means no tax has been collected on the end-of-lease residual value of the vehicle. As a result, if you buy your own car off lease, you DO owe sales tax on the purchase price, and you DO have to register it, and pay, to get the clean title in order to sell it. Assume with me that the car in question is worth a couple grand more than the lease residual value. My original question DID ask if I could avoid paying sales tax by having a dealer do an in and out. My intent was to pay the dealer for the trouble. After both you guys and an in-person dealer telling me that's not likely, I fully accepted that it wouldn't happen, and I understand why. My follow up idea is/was this - since the car is still worth more than the lease-end purchase price, I should be able to make some money. Would a used-car guy at a dealership ever just buy the car from me? In other words, walk into a local Nissan store, find the UC guy and ask what he'd give me for the car. Then, assuming it's more than the buy-out price, accept his offer, he'd pay off Nissan and cut me a check for the difference (for ex.: buyout $13K, car private party value $15K (dealer retail maybe $15.5K?), dealer buys from me for $14 K, I make $1K, dealer can still retail the car, making $1.5K less expenses). Seems to boil down to: do dealers ever just buy cars from guys off the street? Interested to get all your thoughts. Squirrel
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Replying to: squirreljam (Jan 23, 2006 12:41 pm) I'm not a dealer. Yes dealers buy cars from guys off the street every day. But it has to be worth their while. I think $1.5K may not be enough for most. |
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