Hi, new to this forum and I appreciate any advice or feedback. A month and a half ago I signed a lease at a toyota dealership in Colorado. We are moving from Colorado to our home in Maine. Before I even went to the dealership, I communicated with the sales associate that I wanted to have the car under our address in Maine. He said it was no problem. I went to the dealership, did the deal with the address on the contract as out Maine address. When I was back with the finance person, he said that he may need to adjust the contract after I left if Toyota had to change something with the sales tax rate. Ok, fast forward a month, he contacts me and has an updated ‘final’ contract for me to sign. He says this is the final one and we will be all good to go. The amounts and terms are the same as the original. My salesperson drives about an hour to our house to have me sign them in person, even though I docusign a copy before he comes for a wet signature. Now it is two weeks later and the finance guy texts me that Toyota rejected the deal because they got the taxes wrong again. So, now they want an additional $500+ up front and my payment would be $35/mo more. By the way, sales tax is less in Maine than in Boulder, CO. What they have done in the 3rd contract is to take $2000+ from the cap cost reduction and applied it to taxes, causing my payment to go up. I was clear from the beginning, have signed two contracts over a month and a half, and now they are asking for additional funds up front and more per month on a third contract. I’ve owned and leased a number of cars over the years and never had an experience like this, and I’m a very solid financing candidate. I have been texting with the finance person and the sales rep. The finance person said his boss will call me, this is 4 hours ago. I won’t do the deal at the higher prices and never would have in the first place. I don’t care if they want to rescind and have the car back, but I am on the hook for losing any of the $3000 at inception I gave them? Is there anything I need to be aware of or pay attention to with this? Any help or advice is greatly appreciated. Toyota Sienna Colorado
Tell them you’re in Maine and they can come pick up the vehicle if they don’t agree to the original terms. You are legally entitled to get your money back since it was their mistake and not yours.
Thanks, I told the finance person I was fine for them to take the car back, it is still in Boulder - but would love to have them come to Maine to take it back to Colorado. I have read other posts about changing contracts after the fact, but this is the third time with changes to the terms. I couldn’t see anything on any of the forums like this. It has just been such a hassle and now I feel like I’m just getting screwed
If the dealership screwed up the taxes then that leaves you on the hook, but if they’re trying to change the purchase price of the vehicle then that’s on them.
So the contract is not funded and you can tell the dealer to take the car back. You should get all your money back on unwind.
The dealer went to Toyota and the 2nd contract I signed was 2 weeks ago. This was the one that was supposed to be final and they had figured out everything with the taxes. This one had around $2400 as the cap cost reduction. When they contacted me this morning they said Toyota rejected the contract as the taxes were wrong again. They reduced the cap cost reduction on the contract to $400 and then put $2000 to pay the taxes up front, as they said Maine requires the taxes be paid up front. But, then they said I needed to pay an additional $500+ up front and roughly $35/mo more. There is no way I would have done the deal for this. The sales tax in Boulder is 8.45% and in Maine it is 5%. I told this to the finance person and they wouldn’t answer, just kept saying ‘it isn’t us sir, taxes are taxes’ even though I don’t know how the cost on everything can go up if the tax rate is less. This is why I wanted to do it through Maine in the first place. But, doesn’t shifting the cap cost reduction constitute a change in the purchase price?
Sorry, it is 8.85% tax here in Boulder
I called Toyota financial today and had them look up my account. I don’t have an account on record, so I am assuming it is not funded. It has been over a month and a half since I signed the first contract and drove away in the car - I’m fine having the deal rescind as this has been a major hassle, just wanted to make of what my rights were in this situation as I never experienced anything like this before.
Just text the finance guy that you are bringing it back and to unwind the transaction and to have a check for $3000 waiting…was this at LHM?
This was at AN Arapahoe
Any way I can have them come get the car in Boulder, or do I need to return it to them?
That’s up to them…speculation is that you’ll need to take it back. I realize Boulder and Centennial aren’t around the corner from each other. Personally I’d take it back and just be done with it.
Tell them that you want to unwind the deal and that they can pick up the car along with a check for what they owe you. If they don’t go for it ask them to pay you bring it to them and see what they say!
The tax rate should be 5.5% and you’re only taxed on the monthly payment. Also, it doesn’t have to be upfront.
If you’re still interested in a new contract, tell them to just take the taxes out and send it to Toyota. When you go to register the car at the DMV, you can just pay the sales tax there.
They don’t know what they’re doing.
It really doesn’t seem like they have a clue. The deal was for an XLE just over $40K, $3000 total at inception, $495/mo 12k/yr and 15c/mi overage. The crazy thing is that the incentive in Maine was actually better than it was here, but I had just sold a car and didn’t want to rent something before we got to Maine. The first two contracts had my Maine address in them, not sure how you screw it up twice and then ask for a ton more a third time ($3500ish inception and $530/mo)?
I am sure that is what I’ll do. I don’t want to get there and have the manager try to talk me into it. So, I tell them I ‘want to unwind the deal’ and that I’ll bring the car back this week. Can I be charged for milage or anything? I’ve put around 600 on in a month and a half. Also, should I ask for a check or will they just refund my Amex (what I used for the inception money)? Thanks again, appreciate the input.
Yeah, at this point, just give the car back and just buy one in Maine, especially if the incentives are better
Ok, last question; so, I could tell them to re-submit the deal with no taxes and that I would pay those when I register the car in Maine. The payment on the 2nd contract was $471.90, so at 5.5% tax that would be $25.95 for a total of $497.85/mo or $934.20 tax portion alone on 36 payments to the state of Maine. This way on the sheet there would be no tax paid, I would cover that when I get there in full and my payment would be $471.90 or lower since they would allocate everything left over to the cap cost from that total inception amount. On this new contract that they want me to sign, why would the upfront tax be over $2500 and then the payment would also go up substantially? Just double checking, I only pay tax on the monthly payment amount?
They’re screwing something up.
Your math seems correct. Basically when you go to the DMV, you’d owe the $900/whatever to the state and then you’d pay the yearly excise tax on the MSRP for the plates.
This may be because Maine has an excise tax (that is semi-brutal) and Colorado may not?
If this is the reason, then it might explain their issue with getting the taxes right. Maine’s excise taxes on newer cars is very high. I have family members that live half the year in Maine and half elsewhere (FL…and therefore can choose which state to register in) and they register their car in FL for this reason.