cool whip

iTrader: (1)

I live in MI and I'm buying a car in OH. I got the paperwork from the dealership today and it shows they're charging me $644.70 in sales tax. I bought a car in WI before and I didn't pay any tax until I registered it in MI. I thought this was universal. I don't want to pay it and find out later that I still have to pay tax in MI.

Secondly, they're charging me a $250 documentary fee and a $25.50 filing fee. These seem bogus. Or at least the doc fee does. Do you think I'd get very far if I refused to pay it? BTW, I figured out that they charged the above sales tax to these fees as well.

I wanted to get everything taken care of today. Please help. Thanks!

Scoggin Dickey

iTrader: (34)

Some states require you to pay the tax in that state if you are buying from a dealer. You show your local official the proof that you paid tax on teh purchase in the other state and they are supposed to take that off of what you would have paid in your home state. I would definitly call your local registration office and ask them what you need to do, because you don't want to show up to register the vehicle and have conflicts.

Mike@HSW

iTrader: (6)

You pay the tax that your home state would charge. for instance, I am from PA (6%), if i were to go to delaware (0%) to purchase a car they are supposed to charge PA sales tax because i have a PA residence. When they file their Sales Tax Returns, they should be remitting that money to your respective state. Charging sales tax and not submitting it is a felony.

I dont know what document would cost you 250 bucks to complete, that seems like BS to me.

cool whip

iTrader: (1)

I called the SOS (that's who handles this stuff in MI) and it looks like I don't have to worry about that part. MI is reciprical with many states. I just have to provide proof that I paid the tax when I go to register it.

I think you're right about the fee being BS, Mike. I know the time between when I called to close the deal and when they mailed the documents was less than an hour. They weren't willing to negoiate on the price 'cause the salesman said it was so low to begin with. So I think I'm gonna refuse to pay the extra fees they want. If I have to walk away, so to speak, then so be it.

keliente

iTrader: (22)

Any dealership I have ever been do has charged a bullshit $399 fee or whatever for 'documentation'. I'm sure it covers some of their expenses, etc and they say it's mandatory that they charge it.

I wouldn't throw a hissy fit over it because normally it's posted all over the walls inside the dealership in plain sight, however, when you make an offer, include the doc fee in that. That's what I always do. If they say, "oh we can't do that", then tell them, "adjust your price accordingly then so my out the door cost is XXXXX". I always make out the door offers so I don't get screwed with add on fees.

Jon5212

iTrader: (2)

You are correct that 250 document fee is BS, i'd tell them 50 bucks or walk away. They do have to pay a small fee for the titling and crap for the car but no where 250 bucks.

cool whip

iTrader: (1)

I just got off the phone with the salesman. The filing fee they charged was for the 30 day registration so it's unavoidable. He made it sound like the document fee was state law and there was no way around it. I'm not an idiot, though. I asked them to take $250 off the price and they agreed.

Spink

iTrader: (1)

Good job! I did the same thing when I bought my car. There was no posting of a document fee even though I expected it to see one but then it was on the final paperwork. I said knock the price down more to compensate me for it or I'll go buy the other one I looked at. He wouldn't budge so I got in my car and was driving away and he waited until the last second and then he flagged me down and said he doesn't normally do this blah blah blah.