I have to pay for a car dealerships mistake?

[Andrew111]

So I bought a used truck from a dealership two months ago. A few days ago they call me asking for $150 since they messed up and charged me 6% sales tax instead of 7%. The contract specifically states the amount I'm paying for the car, taxes, etc. and I payed them in full and have owned the car for two months. Why should I have to pay for their mistake? I then asked them to take the hit since they made the mistake and they said "We didn't make any money off that vehicle.....it was a truck we needed to get off the lot." I almost laughed at that since I know they be getting some fat commissions and although I got a good deal...I highly doubt they are going to sell me a truck at cost.

I'm in the military and informally talked to a JAG officer and he seems to think that I have no further obligation since I paid what was on the contract. I relayed that to the dealerships finance manager and she wouldn't budge....the JAG officer did admit that since it involves taxes it may complicate things...but he didn't think I should have to pay.

Can anyone explain to me why I should/shouldn't pay?

 

[dirtboy]

Because state law supercedes your contract and since you made a purchase, you are liable for the sales tax on that purchase.

 

[Garet Jax]

Talk to a lawyer to make sure, but make them sue you to get the money...

 

[dullard]

It might depend on what state you live in. Many states have laws that you must pay the full sales tax whether or not the company acually charges it. Thus legally, you might have to pay the state the extra tax (usually on your next yearly tax form). But I don't see any legal reason you'd have to pay the dealership any extra. I'm certainly not an expert though.

Just did the math. They aren't willing to drop the price from $15,000 to $14,859? I cannot believe they won't make a profit when selling a used truck for nearly $15k.

 

[welst10]

Somebody will be pulished or even fired at the dealership

 

[gourmettea]

Originally posted by: Garet Jax
Talk to a lawyer to make sure, but make them sue you to get the money...

any decent lawyer is gonna cost him that $150......

 

[Amused]

Were they nice about it and did they apologize to you for screwing up and having to bother you?

If they did, I would say go ahead and pay it. If they were jerks and demanded the money, I'd say we had a contract and it's fulfilled.

 

[Titan]

it depends on your local tax laws.

I thought in general though, that sales taxes tax SALES, i.e, the people who sell goods. It's just that the tax gets transferred to the buyer every time, well, almost every time. I think the seller has to pay the extra tax which is why they are upset and bugging you. Until they drop a small claims lawsuit on you or something, I'd just ignore them.

 

[Andrew111]

Originally posted by: gourmettea

Originally posted by: Garet Jax
Talk to a lawyer to make sure, but make them sue you to get the money...

any decent lawyer is gonna cost him that $150......

I get free legal assistance since I'm in the military. I had an informal meeting so they could squeeze me in today since they're booked up for a few weeks. I mentioned JAG to the dealership hoping they would back off....I guess they haven't watched the TV show though I just think it's really bad business not to take the hit for your own mistake. I'd really like them to show proof that they sold me the car at cost too.....they just don't want to pay out their own pocket IMO.

Apparently the sales tax is based on weight and it took them two months to figure out my truck weighed more than they thought

 

[3chordcharlie]

Originally posted by: Andrew111
Apparently the sales tax is based on weight and it took them two months to figure out my truck weighed more than they thought

Offer to give back the spare tire to save weight

 

[Leejai]

is it possible to say that the dealership is nullifying your contract, therefore you can return the car w/ the extra miles and get your money back?....

 

[pulse8]

Originally posted by: welst10
Somebody will be pulished or even fired at the dealership

Well, we don't want anyone to be pulished.

 

[waggy]

Not much you can do. besides pay it.

but again look at local laws. But i doubt you will get away without paying for it.

 

[Vic]

Your JAG officer is shockingly wrong. YOU as the buyer are responsible for the taxes, not the dealership. For example, some people think that just because a store doesn't collect the sales tax on an item at point of sale that they are not responsible for tax. Wrong.

Originally posted by: dirtboy
Because state law supercedes your contract and since you made a purchase, you are liable for the sales tax on that purchase.

Exactly.

And how do you know what the dealership made off the vehicle? You can guess, but that's about it. And no one will be fired at the dealership, as they are simply not liable, and aren't the ones who will get in trouble here if the taxes aren't paid.

 

[Andrew111]

Bah, if I pay it I'll pay them in $150 worth of pennies Where do I find local laws on sales tax and stuff? Leejai also brings up an interesting idea.....the contract is wrong.

 

[dud]

Ignore them.

 

[mchammer187]

don't you pay tax when you register the car?

 

[waggy]

Originally posted by: Andrew111
Bah, if I pay it I'll pay them in $150 worth of pennies Where do I find local laws on sales tax and stuff? Leejai also brings up an interesting idea.....the contract is wrong.

NO IT IS NOT.

the contract IS NOT WRONG. you agreeed to pay X for the truck. you paid it. Taxes are something diffrent.

fvck. get over it. go pay the money.

 

[3chordcharlie]

Originally posted by: Andrew111
Bah, if I pay it I'll pay them in $150 worth of pennies Where do I find local laws on sales tax and stuff? Leejai also brings up an interesting idea.....the contract is wrong.

True, but any court would just take the easiest route to fixing that. You agreed on a price, then taxes were calculated. They were calculated incorrectly, so the judge will just fix the error if it came to it.

It sucks, and you can tell all your friends that the dealer f'd up on you, but I think you need to just pay it.

 

[waggy]

Originally posted by: mchammer187
don't you pay tax when you register the car?

yeah. and when you buy from a dealer you register the car there. at least at every dealership we have ran.

 

[Vic]

Originally posted by: tkotitan2
it depends on your local tax laws.

I thought in general though, that sales taxes tax SALES, i.e, the people who sell goods. It's just that the tax gets transferred to the buyer every time, well, almost every time. I think the seller has to pay the extra tax which is why they are upset and bugging you. Until they drop a small claims lawsuit on you or something, I'd just ignore them.

With sales tax, the buyer is ALWAYS legally responsible for the final tax. The seller (edit: if a dealer, private sellers don't have to collect the tax at all, the buyer is simply responsible in full) collects the tax as a required service to the state, but the buyer is legally responsible. Make sense? No? Welcome to the world of taxation. This is how the state guarantees that they get their money.

It is extremely unlikely that failure to pay the tax will nullify the contract in any way. If you don't pay, what will most likely happen is that either (1) it will hold up the legal transfer and you getting plates and registration for the vehicle, or (2) they will process the transfer but lien your vehicle for the deficient amount.

edit: see above, and Waggy is absolutely correct. The contract was for the sales price, not the taxes. I just can't believe your JAG officer.... undergrad who hasn't passed the bar yet?

 

[JulesMaximus]

Tell them to F off. They made the mistake. They should pay for it.

 

[mchammer187]

Originally posted by: waggy

Originally posted by: mchammer187
don't you pay tax when you register the car?

yeah. and when you buy from a dealer you register the car there. at least at every dealership we have ran.

i wasnt sure if that was the case since i havent ever bought a car for myself yet

though i'm planning to soon


i was just thinking about instances where you buy your car in one state and want to register it in another

 

[dman]

Same thing happened to my S.I.L. last week. She bought a new (used) truck here in FL and resides in Louisiana. The dealership messed up on the tax to the tune of $300 I think. Really, as said above, they are just collecting the tax for the state. If you don't pay them the state will come for you later.

If, on the other hand, they forgot to charge you a dealer fee or mis-priced the truck somehow and it's different from the contract, well, TS.

I guess you could be tough on them and keep fighting it, maybe they'd give in but I doubt it. Maybe hit them up for a few free oil changes or something else, car mats, gas, etc for having to drive back again?


[edit: I really don't know, but, when it comes to Sales tax I just assume the State is not going to let it slide or charge the dealer for it... since you are liable not them. Guess you can let us know.]

 

[JulesMaximus]

Originally posted by: waggy

Originally posted by: Andrew111
Bah, if I pay it I'll pay them in $150 worth of pennies Where do I find local laws on sales tax and stuff? Leejai also brings up an interesting idea.....the contract is wrong.

NO IT IS NOT.

the contract IS NOT WRONG. you agreeed to pay X for the truck. you paid it. Taxes are something diffrent.

fvck. get over it. go pay the money.

Actually, you are wrong. The tax was part of the deal in the paperwork. The dealership pays the state. They fvcked up and put the wrong amount on the form. They should pay the difference. You signed a contract with the dealership for x amount. Tell them you aren't paying for their mistake and if they don't like it they can have the truck back and you want a full refund of all money paid.

Edit-Did you look at your copy of the paperwork? Is the tax wrong or are they just trying to squeeze an extra $150 out of you? Either way, I don't think you can be held responsible since you have a signed contract. What state are you in BTW?