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Smart Shopper Got a Quick Question for a Car Dealer?
2394 messages, Last post on Nov 03, 2009 at 11:03 AM
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Hi I hope someone can give me advice. I went to a dealership and and was interested in the 2009 Hyundai Elantra Touring. The salesman offered the car for $16,995 (sticker price is $19,000) he told me that there was a rebate of $1,500. When he filled out the purchase agreement he told me that he had to add the $1,500 rebate on to the price because I have to pay taxes on it. So that raised the price of the car to $18,495. Then he added the taxes, registration, inspection and tire disposal fees. This brought the price of the car to $20,111.!!! Then he said he was going to subtract the $1,500 rebate. The final price of the car ended up being $18,611. First of all I didn't get a rebate but I did pay an extra $1,500 dollars worth of taxes. I am glad that I only put down $100. and he wrote on the form that it was subject to my final approval. What can I do? Is that legal?? Please help in New York. 
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Replying to: avatexrs1 (Jul 11, 2009 1:10 pm) I'd say - go ahead and do the deal. We sell cars sight unseen all the time, because a lot of our cars are in high demand, and if you don't want to buy it - someone else will, and we never had any problems with it. |
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Replying to: vangiebx (Jul 15, 2009 8:19 am) For the rest of my reply, assume his intent was to have the rebate included in the $16,995. In this case, what the salesman did by adding the rebate to the total in order to calculate sales tax is legitimate. I don't know the sales tax laws for NY very well, but in many states including mine, taxes are calculated on the price of an item before any rebates. Think of it this way. If you went to Best Buy to get a $1000 TV that came with a $50 rebate, you'd give Best Buy $1080 (assuming 8% sales tax). Then you'd mail in your rebate and get your $50 a few weeks later. Taxes were calculated on the $1000 not $950. The same thing is happening here except you don't have to mail in your rebate, you're getting it at the point of purchase. One thing you may want to check is how much of a rebate Hyundai is offering. I priced an Elantra on Edmunds and it was showing a $2,000 rebate. It's possible that Edmunds is wrong or that the specific model that you are getting has a lower rebate, so check other sources including Hyundai's web site. Also, the TMV price was much lower than you agreed to, but those prices aren't always accurate and are regional as well. If you are overpaying though, that's bad negotiating, not being scammed.
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Replying to: vangiebx (Jul 15, 2009 8:19 am) Did the salesman say that the sale price is $16,995 AFTER the rebate? Or: The sale price is $16,995 MINUS the rebate? If you agreed to the price of $16,995, and they informed you that the price is after rebate - than all is good, you are supposed to pay taxes on a car before the rebate. It sound like you didn't understand the offer clearly, but this is how is works: you have to pay taxes and fees before the rebate is subtracted. It is legal. |
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You paid 18,500 for the car, and paid tax on that amount. THe $1,500 was subtracted at the end to get you don to the 16,995. rebates are taxed, so he did the correct thing. The bigger question is, are you happy paying $500 off MSRP for the car to the dealer (the rebate comes from Hyundai)? |
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Replying to: newcarbuyer12 (Jul 15, 2009 9:16 am)  That's for a different version of the Elantra.
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Replying to: newcarbuyer12 (Jul 15, 2009 9:16 am) |
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Replying to: boomchek (Jul 15, 2009 10:43 am) the only time I've seen were NJ charges less tax, otherwise we're taxed out the wazoo. |
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Replying to: ldisler (Jul 15, 2009 12:16 pm)
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Replying to: vangiebx (Jul 15, 2009 8:19 am) back in the days before the internet and a 1000 programs the standard close was that you would tell a customer you will sell him the car for invoice including rebates. If it was a $1000 rebate then you automaticly had a $1000 deal because you would add $1000 back to the price, tax it, then subtract the $1000 again. Really not a deceptive practice, just an easy way to close a deal. You were doing exactly what you promised. Buying the car for invoice including rebates. That was back in the days when you negotiated from list down. Does not apply any more now that we negotiate from invoice down. 
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