Just got a call from the dealer stating that because I am registering the vehicle in my home state of VA and I bought it in NJ, I now need to pay another 1200.00 in taxes on the new vehicle they did not account for. I told them to come and pick up the truck and drop my trade off. If I knew it would be that much I would not have taken the deal. I told them I would not pay it and that the papers I signed and they signed were the deal as it was placed. I was there for 5 hours and now they tell me they missed this? No way. I told them to pick up the truck. they have not answered yet.

 

Interesting. I thought the way it worked was that you paid sales tax for whatever state you bought the vehicle in. Then when you go to your home state to register the vehicle, if you paid less taxes than you would have had you bought the vehicle there, you have to pay the difference at the DMV.

So say you bought it in NJ, with 7% sales tax. A $35,000 truck would be $2450 in tax. From what I found in a short search, the sales tax rate in VA is 5%, plus 3% on vehicle sales. So had you bought the truck in VA, it would have been $2800 in tax. You paid less tax in NJ, so the VA DMV would make you pay $350 when you register. (I think)

Anyway, sounds like we need some more information to understand the situtation. A $1200 difference is quite a bit especially if they're just talking differences in tax.

 

Also make sure that if they do take the truck back, they don't try to stick you for the mileage you've put on it. I'd like to believe that an already sold truck would mean more to them than $1200, because they'd probably lose that and then some if they took that truck back and had to sell it as a demo.

 

In VA the sales tax on a vehicle is just the 3%. The 5% is for general sale items. In the past when I purchased a couple vehicles in NC I have done the DMV work once I got back to VA. I paid for a temporay tag in NC to drive the car home.

 

Tell them you will pay the tax when you register the truck. That way, you will know what tax and how much is due to VA. Sounds like they gave away their holdback money and now want it back.

 

Out west if you buy a vehicle in another state, you pay for the vehicle and then bring the paperwork back home to your own state DMV and then pay them the taxes. The bottom line is that wherever you register the vehicle is where you pay the tax. Our neighboring state of Oregon has no sales tax and if there was a loophole I don't think they would sell a single vehicle in Washington where our tax is around 9%.

 

ah yes the great state of WA and the tax rate

 

something seems fishy

 

At least they should split it with you to save the deal. I know there some states are trying to catch all the taxes they can. Especially for those out of state sales where they are at risk of losing the taxes. It wouldn't surprise me if the Norhteast is one of those areas. So if you buy out of state you have to pay both states.
The govt is trying the same thing with internet based sales, eBay etc... states hate losing sales tax to out of state buyers...

 

They stated during our argument that I signed the papers stating that the registration is only an estimated fee at 299.99. When I signed them , the finance guy stated they would be less and I would get a check. Now it is the opposite. i told them they should have done their homework. they stated that they sell cars not process paperwork and that they sell 900 cars/ year and cannot look up every state. I told him I was there for over 5 hours and that i was not taking the deal until I knew the price was the OTD price and that is it. When they stated that I signed the papers. Now because of their screw up I have to pay. They refused to pick up the truck stating the deal was done and they sold my trade. The conversation ended with him saying he would try to work something out and get back to me tomorrow. Then I got an email from my salesman saying I have to pay 1200 when I pick up my tags. I will wait til tomorrows conversation.

 

have you confirmed they sold your trade? and read the papers?

have any friends that are lawyers?

 

Went to the lot and cannot find it anywhere. No, none that would not charge. I will see what they say about it tomorrow.

 

even in the back garage (they always have stuff hiding back there) maybe say pay it worst case but watch them to see if your trade pops up

 

I'm a bit confused. What is the dealer saying the $1,200 tax is for? NJ Sales tax?

As others have said, the way most states work is you pay sales tax in your home state. I'm in VA and have purchased a couple of cars in GA. You sign something in all of the paperwork waiving the GA sales tax due to different state residence. You pay the VA sales tax when you go to register at the VA DMV.

I guess it's possible the law in NJ is different and they collect sales tax for out of state buyers too.

 

thank them for processing your paper work, but you need to see an the registration recipt for the tags, the 299- 300 and in some cases higher doc fee is a farse, most states charge less than 50 bucks for a lien fee, so that all goes to profit tell them you will be happy to pay the difference but in light of their screw up you need to see proof of their payment and from here on out you would rather deal wih the state of va your self. It sound screwy to me in most cases they would have you recontract for that much money, because with out it they dont have a leg to stand on, and my favorite part of a signed contract is that "BOTH" parties must abide by the agreed terms, in most contracts i have seen it only states that additional funds will be collected due to payoff differences, i have never read any thing about a tax clause... the whole deal sounds screwy to me... but with a signed contract you have the upper hand.