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Taxed on private cash offer?

Maxx

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For those of you that have already picked up your truck, did the dealer make you pay tax on the total price before applying PCO? This makes no sense to me but I have heard some dealers tried and some succeeded. I just want to see the stats.

Please make a note if that happened to your price protection as well.
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lightspeed

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Not sure what a poll is going to tell you since this depends on the laws of each state. In CA, they tax the rebate. In MD, you'd have to look up what the law says.
 
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Maxx

Maxx

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Not sure what a poll is going to tell you since this depends on the laws of each state. In CA, they tax the rebate. In MD, you'd have to look up what the law says.
Thanks for the tip. I don't seem to be able to delete the thread.

It looks like in MD we are screwed both on the cash offer and trad-ins
 
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Maxx

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Maxx

Maxx

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Yeah, well, CA the same thing. You pay taxes here if you hand cash from your right hand to your left hand. :mad:
You got it made, we get taxed left to right too.

The whole thing is kinda ridiculous. You make 3% interest on the CD that lost 8% value due to inflation. Instead of paying tax on that 3%, we should get refund on the 5%. But these are mostly taxes for the 99% that can not afford the tax loophole expert accountant.
 

TaxmanHog

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I removed the poll, but left the thread open for discussion, as said above state law governs how sales taxes are applied with respect to rebates.
 

jimfigler

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Doesnt really matter here in NY if it a private offer rebate, special manufacturers rebate, some sort of Holiday cash rebate or even like ford or GM credit card points bonus it all gets treated like cash. Your are taxed on the full amount only a trade-in reduces the taxable amount.
 

RickLightning

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I haven't followed how the Lightning price protection has been done, but I can related our Mach-E experience and that may help.

We ordered a 2021 Mach-E in May 2021. It was changed to a 2022 Mach-E in October 2021, and we were given a $750 rebate to cover the price difference. Then prices went up in January 2022 around $2,000.

Our 2022 Mach-E was delivered in mid-May 2022. We used A-Plan, and the paperwork shows the A-Plan price as it was in October. There is no place that the $2,000 appears, and doing a calculation on sales tax shows it was not taxed.

Again, the Lightning price protection might be different.
 

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Driver8

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Disclaimer: Not a MD lawyer or accountant, and you should not rely on this response as tax or legal advice.

It looks like in MD we are screwed both on the cash offer and trad-ins
Are you basing that assumption on Car and Driver's webpage? It appears to be wrong.

MVA Form VR-005 plainly says in the instructions: "If the vehicle is purchased from a licensed dealer, the excise tax is 6% of the full purchase, less trade-in allowance."

See also paragraph (a)(3)(i) in the link below.

https://law.justia.com/codes/maryla...n/title-13/subtitle-8/part-ii/section-13-809/

"Subject to subparagraphs (ii) and (iii) of this paragraph, 'total purchase price' means the price of a vehicle agreed on by the buyer and the seller, including any dealer processing charge, less an allowance for trade–in but with no allowance for other nonmonetary consideration."
 
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Maxx

Maxx

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Are you basing that assumption on Car and Driver's webpage? It appears to be wrong.
My dealer told me the same thing.
 

Nick503955

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California here, paid sales tax on the gross price before the private offer discount. Translates to an extra $660 in tax that wouldn't have been paid if it had just been a MY2022.
 

Driver8

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My dealer told me the same thing.
If you are using Apple Ford, I would track the thread by @asianman35 very carefully.

https://www.f150lightningforum.com/...ge-price-protection-private-cash-offer.13801/

FWIW, it literally took me less than an hour to sell my car on Craigslist. So, if you took care of your car, there may be little incentive to trade in right now. Tell your dealer that, and I suspect it will figure out real quick how sales tax actually should be assessed in MD.
 
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Maxx

Maxx

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If you are using Apple Ford, I would track the thread by @asianman35 very carefully.

https://www.f150lightningforum.com/...ge-price-protection-private-cash-offer.13801/

FWIW, it literally took me less than an hour to sell my car on Craigslist. So, if you took care of your car, there may be little incentive to trade in right now. Tell your dealer that, and I suspect it will figure out real quick how sales tax actually should be assessed in MD.
I have a few people already showing interest without me saying I will be getting rid or it. I doubt I will trade in.
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