Vechicle Dealer & Sales Taxes.

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Shark

Well-known member
Joined
Jan 8, 2009
Messages
1,392
Location
Cleveland, Tn
My girlfriend just bought a vech today and didn't let me know and go with her to make sure everything was all square and legit. Her car was a death trap for her and her kids. She doesn't carehow much she is paying or how it was calculated. But I do!

A few things didn't seem right to me as I haven't bought a vechicle for several long years so I'm wondering what the practice is on the sales tax and how / when is it figured in during the sale of the vech.

Should the taxes be figured in the sale BEFORE or after the down payment and trade-in are computed into the price?

Should the trade-in and cash down payment be deducted from the Vech sales price before the sale tax and other taxes are added?
Dealers Version: Example 1) All figures are not actual prices and taxes are not accurate.

Vech Sales Price $13,500
Sales Tax + 1000
Other fees/taxes + 200
Total Cash Price = 14,700
Trade - In - 300
Down Payment - 2,000
---------------------------
Total Balance Due = 13,400 emoBang

Version 2: What I think should be computed

Sales Price $13,500
Down payment - 2,000
Trade-In - 300
= 11,200
Sales Tax + 600
Other Taxes + 200
----------------------------
Total Balance Due = 12,000 emoApplause emoSmile

Is this how dealers screw buyers? Should my girlfriend take the vech back and get it financed correctly? emoMad
 
You are taxed on the difference between the new car and the trade. Any/all down payments should be taxed.
 
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