A local MD dealer has a 2010 F150 SLT 4X4 that because of rebates has been lowered to 31,XXX. They told me that they have to add ALL of the rebates back in when they do the paperwork and I will have to pay taxes on the rebates (because "it;s like FORD is writing you a check"). Then after they figure out the sales taxes on the number which includes all the rebates added back in, then they will take the rebates back off the final sales price. ????????? So, basically I will be paying taxes on almost full MSRP even though my sales price is less than that. I told them that is wrong you cant tax someone on a total that is different than what the customer is paying. Isn't that like buying a $50 sweater on asle for $20 but paying tax as if it were full $50. The dealer said they have been doing that for years!!!! Am i wrong.
Last edited by houstonmannn; 11-04-2010 at 04:43 PM.
Reason: wrong year
sounds wrong to me but I dont think I've ever bought a vehicle with a rebate....plus it would probably be different in my state than yours. I'd beat on them more, seems like with the 2011's coming soon you should be able to get them down close to invoice BEFORE the rebates...I mean the rebates are like Ford is writing you a check right .
I would say no, you're not wrong. Of course, being military I haven't paid state sales tax on a vehicle in 10 years, and that's 9 vehicles.
Yep, I'm a country backwoods hillbilly redneck hick, but I probably know how to use that gadget in your hand better than you do. PS1(SW) USN
2010 F-150 STX SCAB, Tuxedo Black, 4.6L 3v, 3.55 LS, 6.5
2011 Escape XLT, Blue Flame Metallic, 2.5 I4
That sounds very hokey. I'm pretty sure they are not allowed to tax the rebates. Many people don't know this, but you can have the rebates mailed to you from the factory as a check...you don't have to have it taken off of the vehicle. But of course, most people do. But to my knowledge the dealership should have nothing to do w/the rebates as it literally has nothing to do with them.
Get them down to a low as possible and don't even let them factor in the rebates b/c that is not money coming out of their pockets. That is not money they are losing. And once you settle on that price, then the rebates should come off of that, and they should not be taxed! I mean, WTF is that dealer thinking? But they will lie to you and tell you whatever in order to ring some extra green out your wallet. I would call him on it. And then walk if he keeps up this act.
Just to make sure I understand, if the vehicle cost $40K and you get $10K in rebates, the $40K is taked...so I'll arbitralrily say $2K in taxes, which puts you at $42K. And then the $10K should come off of that leaving you at $32K. Of course there are other fees, but this should be the basic formula I believe.
1. The dealers "METHOD" - 40,000 msrp : 6 % sales tax= 2400+40,000= 42,400-10,000 in rebates which ends up at 32,400.
2. My way "fopefully correct"- 40,000 msrp -10,000 rebates -30,000 then 6% sales tax is 1800 so total 31,800.
At the end of the day it is only 600 dollars but it is just the point that they are lying and being shady just to have a reason to get more into my wallet. I do not care if it is $5 or $15,000 it is the point of it. If they are lying, they can go FU*^ themselves.
As far as I know the dealership is correct b/c it IS as if Ford is writing you a check. In fact, you can just have them send you the rebate as a check in the mail.
And to your sweater analogy, it is more like if they said, "Buy this $50 sweater and we will give you a $20 sweater for free". Obviously you are getting a good deal, but you would still pay full tax on the $50 sweater you had to buy in order to get that deal.
The dealer may be right. In actuality, the dealer has nothing to do with the rebates. They come straight from Ford. The dealer just gives you the rebates, and then they get the money from Ford as a convenience to you.
So in reality you are paying the price before the rebate.
For them to overcharge you in taxes just doesn't make sense. It's not going into their pocket, they have no reason to do it.
thnx dre. i do love your XLT. that is an amazing truck. i would love to create something that badass but first i have to deal with these darn dealers. are you confident that they are NOT trying to screw me over??