Sales tax on car. When you buy a car how is sales tax determined?

[dxkj]

Is it based on where you live, or where the dealer is located if it is in a different town?

 

[brxndxn]

It depends on how much 'tax' the dealer can add without you realizing it. Car dealers = ferengis.

 

[dxkj]

Originally posted by: brxndxn
It depends on how much 'tax' the dealer can add without you realizing it. Car dealers = ferengis.

The dealer I was at told me that they charge less sales tax in this town than the next one over where I am considering buying a car. A few quarters of a percent make a difference when the car is 18k

 

[OutHouse]

Its based on where you live. I happen to live in a small town so its only sales tax of 3%. when i bought my van last oct the dealership aruged with me and charged me 6.9%. a few weeks later i got a big fat refund for overpayment on my tax.

 

[dxkj]

Originally posted by: Citrix
Its based on where you live. I happen to live in a small town so its only sales tax of 3%. when i bought my van last oct the dealership aruged with me and charged me 6.9%. a few weeks later i got a big fat refund for overpayment on my tax.

Sweet, thanks for the answer. You rock!


I think dealer A may have lost my business for lying to me about that.

 

[Mill]

Originally posted by: Citrix
Its based on where you live. I happen to live in a small town so its only sales tax of 3%. when i bought my van last oct the dealership aruged with me and charged me 6.9%. a few weeks later i got a big fat refund for overpayment on my tax.

I guess in your state it is, but local tax here is based on where you buy or where you took delivery. I took delivery of my Audi "outside" Huntsville city limits, so I only had to to pay the county taxes. Saved about 4 percent.

 

[OutHouse]

Originally posted by: dxkj

Originally posted by: brxndxn
It depends on how much 'tax' the dealer can add without you realizing it. Car dealers = ferengis.

The dealer I was at told me that they charge less sales tax in this town than the next one over where I am considering buying a car. A few quarters of a percent make a difference when the car is 18k

Sales tax is something they can not be forengi on, its reported to the state and the county you live in.

I bet he is tweaking the interest % on the loan it self. your state will know where you live and charge the dealer that tax, they will not pay more by giving you a "deal" and charge you a tax in another town.