I just jumped onto the XC90 train for my brother and got him a deal in GA that is getting picked up today. Yesterday he signed all paperwork and everything matched our agreed upon monthly payment and DAS amount. Today as I’m reviewing the paperwork, all looks good until I see that the residual is adjusted for the loaner, ok fine. But when I account for that, there’s no way we’re getting this car at the price we got. The price only works out in my deal sheet if I completely remove all NY taxes!
This can’t be good. Paperwork is signed and car is getting picked up, I really don’t want to bring this up, but is my brother going to receive a bill for these taxes? Never encountered this before with an out of state deal. The deal sheet I presented the GM clearly had all NY taxes capitalized, and that was the price he came close to when quoting the payment/DAS that made the deal. Now I’m very concerned we have a problem.
Sounds like the dealer is dealing with NY sales taxes for the first time.
The deal will not be founded, IMO.
The dealer will get back to you and ask for additional money to cover the taxes. If you say no, they may ask you to bring the car back. You can always work it out and split the cost if they agree to it.
Oh man that is so disappointing. I really thought we had a wild one. Discount is over 14%, but once I account for the residual adjustment we’d be at $448/month with all taxes capitalized. He signed at $369.
Yes. The problem will pop up at the time when the dealer will submit paperwork to NY DMV.
NY DMV collect the sales tax upfront.
I would go with MSDs . It will lower the monthly for about $60/m.
So it will be kind of middle ground.
Yeah certainly not! And definitely don’t want to spend money shipping it back because the deal died. Looks like I’m in for a fun discussion. Thanks again.
It’s being shipped from GA to NY today for $850. I don’t want my brother to spend that money and take the car if there’s an issue.
I just got off the phone with the GM. He’s saying they use a 3rd party for taxes and all looks good on his end. My sheet shows we’re getting a $448 deal for $369.
I did my diligence and was upfront with them. We’ll see where this goes. All I know is that the only way I match the Gross Capitalized Cost on their deal sheet is by removing all of my NY taxes.
For future reference dealers outside of the Northeast have no idea how to calculate NYS tax. Always verify with them and if they use a runner service ask that you can see the contract prior to signing.
The issue for us right now is the agreed deal on the car for 24/12k was $369 with $869 DAS. The deal sheet I presented them capitalized all taxes, but used the standard RV unadjusted for loaner mileage because it wasn’t posted. When my brother shared a picture of the deal sheet yesterday, my primary focus was on the payment and DAS matching our agreement.
It wasn’t until putting all the details back into my sheet today that I realized the adjusted RV basically put us at exactly what I’d originally presented, just without any taxes rolled in. This was never clarified to us in anyway, we were told of the discount and the monthly payment/DAS. All of which made sense until now.
I realize that it’s still a great deal even if we pay these taxes, but it’s just a bit of a shock to say the least. I didn’t even think to look for something like this happening. Lessons being learned for sure.
Thank you. GM assured me all looks good on his end, but I sent him an updated sheet showing that if I match his deal sheet, there’s no taxes rolled in or paid. I’m not trying to screw myself here but also want to show I’ve done all I can to remedy it. Haven’t heard back yet. Will definitely update when I know the outcome.
Personally I would cancel the truck until this is worked out. My guess is they will tell you to either pay to ship it back or pay the taxes on your end. The contract will clearly show if taxes were collected or not. If it doesn’t show on the contract and they aren’t eating it on their end (make sure this is spelled out on the due bill) you will end up owing NY.
So a happy ending to this story. First thanks to everyone for their comments and advice. I truly appreciate all of you!!
As some of you advised, I decided I couldn’t let the car get picked up without resolving this. I emailed the manager last night to say I’m positive you haven’t collected taxes. Here’s my reasoning, here’s your current deal. I then said we had an expectation that taxes would be capitalized when you quoted your offer. Based on our expectation, my new offer on this car is base money factor and a slight increase in discount.
He called this morning to thank me for pointing out their error and said he was sure everything was good when he said it yesterday. He accepted my updated offer which solely requires another $504 cash payment from my brother. They’re eating the balance of the taxes. This saves my brother roughly $1,350 from what the original deal would have been with correctly capitalized taxes. Final deal is $390/month with $869 DAS 24/12k. Getting picked up today and with a solid relationship intact!
Glad it worked out for your brother and I think you did the right thing vs trying to force the dealer to eat everything even though they made the error.
