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can dealer charge more than state tax and title registration fees?

Discussion in 'Prime Main Forum (2017-2022)' started by ltlurker, Oct 19, 2020.

  1. ltlurker

    ltlurker Member

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    Got the build sheet from a dealer and was quoted a number higher than the % charged for title and tax fees by a couple hundred dollars. EVs should be tax free in my state so I technically should be only paying for title and inspection estimated to be < $100. Was wondering if that's something dealer sets or should it be inline with what the state is actually charging?
     
  2. Trollbait

    Trollbait It's a D&D thing

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    I understand what the dealer can charge for document fees varies by state.
     
  3. ltlurker

    ltlurker Member

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    doc fees were broken out to another line item. I'm specifically asking about tax and title which dealer is required to collect. the math just doesn't add up
     
  4. fuzzy1

    fuzzy1 Senior Member

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    The state sets the rate, not the dealer. The dealer can't misrepresent it without risking fraud charges.

    But, by any chance, does your state have some sales tax surcharges for cars, that you haven't yet accounted for? I.e. some extra levies beyond the normal sales tax rate for other retail goods? Mine does:

    "Motor vehicle sales/leases tax

    RCW 82.08.020(3) imposes an additional tax of three-tenths of one percent (0.3%) on the sale of motor vehicles. This additional tax is referred to as the motor vehicle sales/lease tax."


    (Just to head of possible confusion, remember that title - registration fees are separate from sales tax, not included in that percentage.)
     
  5. egg_salad

    egg_salad Active Member

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    Your info says you are in DC. I assume the dealer is in another state. You need to do research on how that works. I've had issues buying from out-of-state dealers where they don't fully understand how to do those sorts of transactions.
     
    FuelMiser likes this.
  6. ltlurker

    ltlurker Member

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    that brings up a good question. car sales tax is on the state of registration or state of the actual sale?
     
  7. PT Guy

    PT Guy Senior Member

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    No, they can't charge more. In some cases they estimate, and it's better to estimate on the high side than on the low side and require more money from the buyer.
     
  8. fuzzy1

    fuzzy1 Senior Member

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    Yes, depending.

    You owe sales or use tax in the state of registration.

    Many states will waive sales tax to out-of-state residents who will take the car back to their home state for registration. But at least one won't -- California, where to avoid sales tax, you must put the car on a truck to be hauled out of state, it can't drive out under its own power. There may be others as well.

    Some states may give you credit for sales tax paid elsewhere, and just charge you the difference for their own higher tax. But I don't believe this is the norm for new cars.

    There may be other combinations as well. Without giving us your purchase and registration states/districts/territories, we can't answer very well. You will have to go check with the DMVs of both jurisdictions.
     
  9. egg_salad

    egg_salad Active Member

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    Shh... it's a secret.