alping45

iTrader: (1)

Shopping for a '15 XLT 3.5eb, one dealer quoted the rebates after tax was figured to the truck, another dealer figured in the rebates before the taxes which saved me 8.5% of $4750 which is over $400... Which was is correct?

tsigwing

before

T_R

before

Sparky101422

rebates should be taken off before tax

daveantonio92

I am a Ford salesperson; rebates are applied after msrp come off after tax. There is no way around it.

ie.

My 2015 F150 was

$53700
sync and sound discount $750
northeast discount $750
$52,200 MSRP

Tax is on negotiated price lets say it was 50,000 you'd pay $50,000 (+tax) than subtract rebates.

T_R

Maybe in your state, but not here.

My truck showed up today, I work at a Ford dealer, in service, not sales, so I don't know everything.

I have my paperwork right here. My $2500 in rebates came off pre tax.

daveantonio92

Customer cash rebates reduce the purchase price of the car. But Magyar says most states charge sales tax on the full purchase amount before the customer cash rebate is applied. For a $25,000 car with a $500 rebate that reduces the sale price to $24,500, you'll pay tax on $25,000. In the chart below, look at the column labeled "Are Incentives Taxed?" If there is a "Y" in this column, it means the sales tax is based on the car's price before rebates

Some states differ. Turns out if the dealership is telling you yes your taxed on it, they are telling the truth because it would not benefit them! If they did mislead and keep money they said was tax

ie $5000 rebate in NY approx $450 in tax...

they would have heavy fines if not shut down.

4js8wh

Depends on your state

MYTH 4:
Rebates are always subtracted from the negotiated selling price.

In most states, the rebate is considered part of your down payment. If so, the way it works is this: first the dealership adds up the negotiated purchase price, applicable taxes, license fees, doc fees, etc. into a grand total. THEN they subtract the down payment - including the rebate - from that total price. That's the legal manner in which rebates are handled in most states. NOTE: In some states, the rebate may, indeed, legally be subtracted from the selling price of the vehicle before taxes are added in. Be sure to ask your car salesman about the laws concerning rebates in your state.

http://beatthecarsalesman.com/rebates.html

alping45

iTrader: (1)

Ok this may explain it, the dealer applying after tax is in NY, the dealer applying before is in PA. Figures.

Got-F150?

That is ridiculous! Glad I don't live in one of those states since that's not the purchase amount, after rebates is the purchase amount...then again, some states give you a tax break for trade-in difference and some don't..