New Vehicle Purchase Question

[bholman]

I am looking at purchasing a new vehicle and had a question about the "business tax." As you know, they write everything down on paper so you can "see how it looks." When I got home, I was reviewing this sheet to look at the items that weren't filled in yet. State sales tax (I understand) and local sales tax (I understand). What I don't understand is the "business tax." Can someone help me out on this tax? Is it legit or just another way of trying to get more money out of you?

[Spots]

I am looking at purchasing a new vehicle and had a question about the "business tax." As you know, they write everything down on paper so you can "see how it looks." When I got home, I was reviewing this sheet to look at the items that weren't filled in yet. State sales tax (I understand) and local sales tax (I understand). What I don't understand is the "business tax." Can someone help me out on this tax? Is it legit or just another way of trying to get more money out of you?

Asked my wife who works as a billing clerk in a dealer. The business tax is charged to every car because every vehicle the dealer sells they have to pay the business tax on it.

Sent from behind the anvil

[2.ooohhh]

Some dealers pass it on to the consumer others pay it from the proceeds of the vehicle's sale. It is completely legal to do so and many dealerships do, but IMHO if the customer is paying the sales and use tax, the business tax from running the dealership falls on me.

 

https://www.tn.gov/assets/entities/revenue/attachments/98-34ms.pdf

[runco]

Highly recommend always negotiate OTD price negotiations with the sales side.  Write the check before you ever enter into the business office.  Don't worry about the details in the middle of the paperwork, only concern yourself with the final number, the rest is just voodoo math anyway.  Many times this has saved me money and avoidance of the dreaded sleight of hand by the business manager.

[Just2Honor]

If anything is added after you negotiate the deal on the sales floor for the "bottom line number"  and if others add anything I suggest getting up and heading towards the door.  If they don't cancel the add-on, keep walking.  This is an unethical business practice.  What if I said I'd sell you a widget for $1.00 and then when you got ready to finish the deal I added 50 cents?

Edited October 27, 2015 by RoadKill