Is it correct to pay taxes on the price of the truck and then subtract rebates. I would think you would pay taxes on the final price. It is about $ 200.00 difference in my case. Not that big of deal but it dosn't seem right.

 

Although it seems fishy.. they did it correctly, and taxed you before the rebate...

 

Yep! That's what they did to me here in Virginia. Cost me an extra $150. If you think about it, when you get a rebate on any other product, you pay the selling price that includes the rebate amount and when you get the rebate back, it does not include the tax back.

 

That is the correct way to do it. Kinda the reason they call it "$xxxx Cash Back" and not "$xxxx discount"

 

Thanks

I was just making sure.

Has anyone been able to haggle there interest rate down after taking the rebates?

 

I got the rebates then I financed with my own bank...so I got the best of both worlds. Also, there is a way to get the the rebates money and not get taxed on it. I got 4250 in rebates, so what I did was get my loan for 4250 less and pay the 4250 cash....then I just took the 4250 when it came back to me as CASH vs off the vehicle and put it back into my savings. Now if you dont have cash then put the 4250 on your credit card. You can pay with the check from you bank then have them put the rest on your credit card, that way its just a purchase. Then when you get the rebates checks you can pay off your credit card. Seems like a lot of work but it was worth the extra money I saved. I got my 2" leveling kit with the money saved

Bryan

 

Using your logic, if I pay cash for my entire vehicle, I will not pay any sales tax. That is bogus. Your dealer screwed up if that is really what happened, and I bet you will get a bill from the county tax clerk for the tax on $4250.

 

I'm with Grumpsy. Someone screwed up. You should have been taxed on the selling price of the vehicle, NOT what you financed. Putting more money down shouldn't have lowered the tax you paid. Good for you though, if you got away with it.


Jeffery

 

In MD unfortunately, you do pay taxes on the amount rebated. You do not pay for any discounts, dealer sells for 100 over invoice, that is what you pay taxes on. Now when I used live in PA, you payed taxes on the vehicle after discounts AND after trade-in. It has been a while since I lived there, so I can only assume the law is the same.
When I moved here they got when the tags were transferred. Had to pay sales tax on the blue book plus tags and title.

 

The reason I say get the rebates back as cash, cause they wont charge you sales tax. My sister works in MD and is a Finance Person, she is the one that told me about it and all I know is I saved a few hundered dollars

Bryan

 

In GA you pay taxes on the out-the-door price.

 

Haven't you people heard of tax reform?

If you finance it, you pay tax.
If you pay cash, there is no tax.

Go Republicans in '08!