I signed a lease back in December and I was still not able to register it.
Long story short: the lease was signed in LO but I live in TX. The dealer wrongly calculated the taxes ($3172.20 VS $4047.20) and DMV will not provide the tag if the taxes are not payed upfront but I believe the taxes were/are rolled into the monthly payments as this was a Sign&Drive VCUSA event.
The executive manager of the dealership called me asking to pay by credit card the full amount of taxes but after some negotiation, he agreed to pay that amount on half, as it was their mistake.
Could somebody advice what should I do? Is my monthly payment going to be decreased by the taxes amount?
Really appreciate any help on this.
The Whole Amount? Not the 1k or so difference?
Where is LO?
Bottom line, the taxes must be paid. I don’t know if Volvo can redo the contract with the correct taxes or not since it’s been so long. If they are able to redo the contract, then of course your payment will go up to account for the additional taxes paid.
The other option is you pay the taxes owed as one lump sum. You said the dealer is willing to split it with you.
I reckon OP meant LA (neighboring state).
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That’s what he said, to pay the whole amount that’s why I think my monthly payment should go down as all taxes will be paid at once and should be no longer included in the monthly bill.
He would have to redo the deal and your total payment would go down, yes…assuming he is doing that
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Sorry, LA (Louisiana). Yes. They are willing to split the lump sum but I just wanted to make sure I will not be paying double taxes: lump sum and monthly…
Is this something the dealer needs to do or VCFS?
If you already have the taxes rolled into your monthly payments, that means the dealer should have remitted a check for the amount rolled in to the state, and you should just be paying the difference.
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Looks like they did not included the taxes into the monthly payments in the initial agreement. The previous finance manager left the dealership and it seems I have no other choice but to pay…Lesson learnt the hard way.
The dealer might have included taxes in the payment but now tries to get extra dough out of you. Post the contract in signed section. I doubt VCFS would have funded it without taxes clarity.
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Thank you. Just posted it: SIGNED! – See what others paid for their leases
yeah, looks like they indeed did not include anything on the contract. I wonder how VCFS had funded it… The screenshot above clearly shows they planned to include 3k+ in taxes…
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Thanks for checking it, on the back on the contract, they did include those 3k+ in taxes, not sure why it was not reflected into the monthly payments…
The tax was capitalized into the lease, most likely. It is under the “gross capitalized cost” section. I’m surprised this validated, let alone funded, with the wrong tax.
If the wrong taxes were included, what should I do them?
You need to work it out with the dealership. You’re liable for them, but it’s tricky since you contracted for less than that and it’s been months. If they remitted what appears to be around 75%, then you need to work with them on the other 25%.
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In this case - I would have worked with them to cover the differnece (not the whole thing), but they must pay the whole amount to the state.
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