I am living in WA and got a lease deal from a FL dealer. lease tax would be 10.55% in WA but the deal’s tax is so low (about 1%) but the dealer says WA tax is reflected.
It can often take an out of state dealer 2 or 3 passes before they get taxes correct, especially true if it’s for a state the dealer rarely deals with.
In NC here the tax is 3% on the payment, a few years ago I was leasing an Audi from GA and the dealer insisted the quote had taxes included, I knew it was off and when we got into the details they had included a 3% tax on the whole selling price. Stuff like that.
So if you’ve done your homework and know exactly what the payment should be with tax, and the deal you’re being presented looks off even though they say taxes are included, I would just call the dealer and walk through the payment and taxes again. Ask to speak with the business or finance manager if necessary.
If the dealer has miscalculated taxes they’re not just going to eat it, they will come back to you at some point, so better to figure it out now before things go further.
they had included a 3% tax on the whole selling price.
Because the dealer confirmed that WA tax is included even after my saying 10.55% should be in there (but the doc’s “tax” entry is about 1%) probably the whole leasing price incorporates the other 9.55% part of tax?
Are you looking at the right number? “1%” sounds like it may be upfront taxes. If you have the sheet, please post it here.
If you are referring to $738.58, that’s upfront taxes.
Plug your numbers into calculator and you might find that the per month tax is actually what you expect.
If WA charges a 10.55% tax on the payment amount then it definitely is not the case where the dealer randomly decided to charge 1% as upfront tax and the other 9.55% on the monthly.
I’m not familiar with WA taxes but maybe you or others could chime in on whether there is any upfront tax due in addition to the 10.55%. As noted above the $738 is being charged as an upfront tax.
If there is in fact no upfront taxes that should be charged then you just need to question the dealer on what that $738 is.
This is exactly the kind of stuff I was referencing when I said it can typically take an out-of-state dealer a few tries to get everything right.
$7000 (rebate) @ 10.55% = $738.5
So his post-tax monthly ‘should’ include 10.55% tax. If it does not, OP can expect a revised contract should they go forward with this. IMO
Oh then paying 10.55% tax for rebate upfront and for every montly payment it actually includes tax then IIUC
Most probably.
Again, you can plug all numbers, including tax rate, RV and MF, into calculator and see what monthly payment it shows. If it matches with dealer’s monthly, the tax rate is right. Otherwise its wrong.
How on earth are you saving money having it shipped from Florida versus a closer state?
How did you bypass all the brokers on this site closer to you and end up with a Florida dealer? Is there a distance in the 48 that’s longer than FL to WA?
You can also try and reach out to the title runner. I had a customer with this same issue. In fact it was a WA resident. They levied 10+% on the total selling price. Called them up and they fixed it. All depends on the region though. Easy to convince in states that have a uniform tax percentage, such as MD, VA, DC, WA…
one of the LH brokers guided me to the FL dealer.
I strongly think WA is a grave for car buyers where all the dealers are keep saying that they provide “transparent hassle-free trustworthy easy price-competitive” deals (even before they pull my credit so that they assume I am tier 1 folk) but actually offer the worst deals ever in our history after Ford made the first car. They only try to let me visit the dealership but all the time when I did they were all trying to rip me off and nothing else 
I should rather walk or rent a car with my company discount if things won’t go out well. Maybe in the future I gotta establish a startup that really handles this painpoint of all car buyers because even LH cannot handle many painpoints especially for newcomers who just moved into the US.
I should call DMV someday. I guess what customers expect for dealers are “hassle-free” registration and tax related things, but…
Maybe I should go somewhere else and get a lease deal then drive back to WA
What’s your pretax payment?
I’m not sure whether it’s pre-tax or not but anyway it’s 481 per month with 2k down (in April deal) May version will come out soon but the dealer tries to break the deal because I asked a few questions but not signing the doc right away.
Already paid broker fee $699 for AutoNinjas. If I sign the deal $2k more expected for shipping from FL to WA.
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