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Old 09-12-2010, 12:09 PM
 
41 posts, read 152,475 times
Reputation: 25

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So...I finally get my paperwork Friday and found a lot of errors and numbers that don't add up. Someone please help me understand just what in the **** I'm looking at here and WHY I'm seeing discrepancies!!

Taken verbatim from the Retail Buyer's Order:

Cash Price of Vehicle: $18,872.00
Accessories: zero
Less Pre-owned Allowance &/or Discount: N/A
Net Difference $18,872.00
Dealer Delivery Fee: $595.00
Electronic Registration Filing Fee and Processing Fee: $69.95
Lead Acid Battery Fee: $1.50
Florida New Tire Fee ($1.00 per tire): N/A
Subtotal: $19,538.45
Sales Tax __%: $586.15
County Tax: $50.00
Lemon Law - Warranty Enforcement Act (New cars only): N/A
Florida Title, Registration and License Fees (New __ Trans __): $220.00
Trade Pay-off / Balance on Prior Lease: N/A
Subtotal: $20,394.60
Motor Vehicle Service Contract: $1,866.00
Vehicle Maintenance Agreement: N/A
Doc Stamps, Gap Ins: $779.10
Sales Tax on Other Benefits: $130.62
GRAND TOTAL: $23,170.32
Rebate: N/A
Cash (Receipt #____): $600.00
Total Cash Down: $600.00
Balance Due On Delivery: $22,570.32

First, the sale price of the vehicle as listed is $18,372. The additional $500 included on the RBO is supposed to be a fee that the subprime lender (Santander) requires the dealership to pay in order to finance my loan. The salesman flat out told me he wasn't eating the cost on this and that fees of this nature can run into the thousands, so I was getting off relatively easily. However, I don't understand why I haven't been provided with documentation of this (for the record, I haven't been provided *any* documentation from the lender, leading me to believe that I haven't really been approved for financing of any kind). Am I simply to take him at his word?

Second, is it normal practice to be charged sales tax on the sales price PLUS all the fees?

Third, the sales tax on this vehicle is 7.00% (6% state, 1% local). At the very LEAST, I should be charged in the neighborhood of $1,286 for sales tax, yet the three lines on the RBO dedicated to tax (of any kind) don't remotely add up to this figure.

Fourth, how are my own state's taxes and registration/title/highway use fees accounted for? I was told initially that I would not have to pay BOTH of the state's taxes and registration/title/highway use fees, that some kind of "reciprocal" agreement exists that would ensure I only pay my own state's fees.

Fifth, the price of the Motor Vehicle Service Contract was $1,800 according to the F&I guy; so why is it $1,866 on the paperwork?

As you can tell, I'm pretty naive to this process; it is only my third dealer purchase in 23 years of adulthood (and my first out-of-state purchase). I'm trying to be thorough and learn, but I can't help but feel something just ain't right here. I haven't signed ANYTHING and won't until such time as I feel comfortable with what each penny of this contract represents.
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Old 09-12-2010, 12:28 PM
 
Location: Dallas, TX
4,464 posts, read 9,632,464 times
Reputation: 2819
Dude, unless this is a very special vehicle, I'd walk away from the deal, and possibly take the deposit loss (is it a lot?). It sounds like they're trying to scim you for what it's worth thinking you're an easy target.
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Old 09-12-2010, 12:44 PM
 
Location: Apple Valley Calif
7,475 posts, read 19,565,214 times
Reputation: 5575
Dump these people..! Several of these charges are phony. Deliery charge is for a new vehice, not a used one, unless that is delivery to your home out of state....!
several items just don't make any sense. I'd get out of the contract and find a dealer who does business in an honest way. they're taking advantage of you.
They are just tacking fees on top of fees..! They aredeal with an unknowledgeable woman and they are sticking it too her/you..!
You mention you are dealing with a sub prime lender, that means you have poor or no credit. If that's the case, you shouldn't be buying a car that expensive. Sub prime lenders charge way too much interest, and they know they have a fish on the hook, thus the added on fees. Most of the fees you mention are a rip off...!
If I were you, I'd find a good used local car for half or less. I know an older car isn't a much fun, but you buy that overpriced car the payments will go on far longer than the thrill will last. Don't make another financial mistake, the kind that probably got you to where you need a subprime lender..
Think with your head rather than your heart, you will be much happier in the long run.. run, as fast as you can..! Next time, ask for advice before you get in so deep..!
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Old 09-12-2010, 01:01 PM
 
9,322 posts, read 11,246,447 times
Reputation: 5964
Quote:
Originally Posted by ShadyOaksGirl View Post
So...I finally get my paperwork Friday and found a lot of errors and numbers that don't add up. Someone please help me understand just what in the **** I'm looking at here and WHY I'm seeing discrepancies!!

Taken verbatim from the Retail Buyer's Order:

Cash Price of Vehicle: $18,872.00
Accessories: zero
Less Pre-owned Allowance &/or Discount: N/A
Net Difference $18,872.00
Dealer Delivery Fee: $595.00
Electronic Registration Filing Fee and Processing Fee: $69.95
Lead Acid Battery Fee: $1.50
Florida New Tire Fee ($1.00 per tire): N/A
Subtotal: $19,538.45
Sales Tax __%: $586.15
County Tax: $50.00
Lemon Law - Warranty Enforcement Act (New cars only): N/A
Florida Title, Registration and License Fees (New __ Trans __): $220.00
Trade Pay-off / Balance on Prior Lease: N/A
Subtotal: $20,394.60
Motor Vehicle Service Contract: $1,866.00
Vehicle Maintenance Agreement: N/A
Doc Stamps, Gap Ins: $779.10
Sales Tax on Other Benefits: $130.62
GRAND TOTAL: $23,170.32
Rebate: N/A
Cash (Receipt #____): $600.00
Total Cash Down: $600.00
Balance Due On Delivery: $22,570.32

First, the sale price of the vehicle as listed is $18,372. The additional $500 included on the RBO is supposed to be a fee that the subprime lender (Santander) requires the dealership to pay in order to finance my loan. The salesman flat out told me he wasn't eating the cost on this and that fees of this nature can run into the thousands, so I was getting off relatively easily. However, I don't understand why I haven't been provided with documentation of this (for the record, I haven't been provided *any* documentation from the lender, leading me to believe that I haven't really been approved for financing of any kind). Am I simply to take him at his word?

Second, is it normal practice to be charged sales tax on the sales price PLUS all the fees?

Third, the sales tax on this vehicle is 7.00% (6% state, 1% local). At the very LEAST, I should be charged in the neighborhood of $1,286 for sales tax, yet the three lines on the RBO dedicated to tax (of any kind) don't remotely add up to this figure.

Fourth, how are my own state's taxes and registration/title/highway use fees accounted for? I was told initially that I would not have to pay BOTH of the state's taxes and registration/title/highway use fees, that some kind of "reciprocal" agreement exists that would ensure I only pay my own state's fees.

Fifth, the price of the Motor Vehicle Service Contract was $1,800 according to the F&I guy; so why is it $1,866 on the paperwork?

As you can tell, I'm pretty naive to this process; it is only my third dealer purchase in 23 years of adulthood (and my first out-of-state purchase). I'm trying to be thorough and learn, but I can't help but feel something just ain't right here. I haven't signed ANYTHING and won't until such time as I feel comfortable with what each penny of this contract represents.
I don't see that much off in your contract.

You are paying the taxes of the sale of the vehicle and then the dealer is registering your vehicle and charging you for registration taxes/fees for one year.

The MVSC is $ 66 over because those are the fees to the service contract . ( my guess )

Your taxes if based on the sale price without all the additions ( $ 18,872 ) would be $ 1,260 and your taxes based on final price would be $ 1,662 based on 7 % . ( $ 22, 570.32 ) I actually based it on the $ 23,000 price in this case so a little less , say $ 100 less ...

Now this is my intepretation. Someone else on here who understands auto purchase contracts may tell you better than I did or correct my figures. It's good that you reviewed the contract in either case .

Either way I would have someone look at the contract. This is your right
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Old 09-12-2010, 01:11 PM
 
Location: Eastern NC
18,096 posts, read 16,624,381 times
Reputation: 15938
From what I understand, sale tax should only be charged on the vehicle, not all the fees but it vcould be different in Fla. You agreed to the service contract and gap insurance, correct? Did you provide him with your ssn, thats the only way he can get financing for you. I agree the taxes don't add up. Think you need to make a call to him. Bottom line, if it doesn't feel right, back out.
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Old 09-12-2010, 04:07 PM
 
41 posts, read 152,475 times
Reputation: 25
Forget every other discrepancy that appears on this and the other papers in my packet...the erroneous calculation of the sales tax alone leaves me with a very bad taste in my mouth. It appears to me that the dealer is trying to cheat the state out of the taxes that are owed.
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Old 09-12-2010, 05:15 PM
 
Location: Columbia, California
6,662 posts, read 25,334,551 times
Reputation: 5067
Do not buy their Gap insurance. I see they are charging you $779.10, your own auto insurance company will only charge $50 for the same insurance.
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Old 09-12-2010, 05:32 PM
 
41 posts, read 152,475 times
Reputation: 25
Quote:
Originally Posted by ferretkona View Post
Do not buy their Gap insurance. I see they are charging you $779.10, your own auto insurance company will only charge $50 for the same insurance.
My agent told me that my insurance company (Allstate) does not offer gap insurance.
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Old 09-12-2010, 07:46 PM
 
Location: Eastern NC
18,096 posts, read 16,624,381 times
Reputation: 15938
Unless you are paying to much for the vehicle or its a vehicle that depeciates big time, you don't need gap insurance.
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Old 09-12-2010, 08:41 PM
 
Location: Columbia, California
6,662 posts, read 25,334,551 times
Reputation: 5067
Quote:
Originally Posted by ShadyOaksGirl View Post
My agent told me that my insurance company (Allstate) does not offer gap insurance.
I have Allstate. I did not know anything about GAP insurance and bought it from the dealer, she told me my mistake when adding the truck to my policy. We bought my wifes truck 6 months later and knew better, easy and cheap to add to her truck.
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