So none of my friends know the answer to this question, so I thought I would throw it out here and see if anyone knows. As some of you know, I am looking at buying a new car. My question is what will I get taxed on? The price of the vehicle (27, 590 - 2,500rebates) or the remaining sum of the new car price, after trade in, down payment, and rebates? Someone told me it just depended on how the dealership wrote it up. Obviously I hope they tax me on the remaining balance (aprox $10,000), that would lower my car payment!! Also, does anyone work at a Ford dealership that could get me some inside information on how cheap I can get an 09 Escape for? I am trying to get the best deal possible!! Thanks for any tips/advice!!
Somewhere there will be a final cost of the new vehicle. You say $27590. - $2500 ford rebate = $25090. So Im pretty sure you will pay tax on $25090. Then the amount financed will be the $25090. - down payment + title and license.
Man if yesterday wasn't my last day at the dealership i worked at i would've asked our finance Manager for ya.
The final, agreed upon price before any down payment, trade-in, etc is the amount that will be taxed. Not the remaining balance after down payment, rebate, etc. Somehow, some way you are *paying* that $17,590 (or whatever) so it's still factored into the overall cost. They could probably get in a lot of trouble with the IRS or whatever if they only taxed you on the remaining balance.
