If you finance a car purchase in Washington, is the sales tax paid off as part of your monthly payment or up front? (Vancouver: good credit)

[iuecon99]

I am finally moving to Vancouver June 1st. Not in a position to get a car at this point so I'll be doing once I'm up there. Let's say you buy a $12,000 car and the associated tax is $800. If you finance over 60 months, is the $800 due up front or part of the payments? Doesn't seem like a big deal, just curious though.

[bler144]

The state wouldn't track your financing - the dealer will collect and transfer the tax in full on behalf of the state as part of the purchase.

Edit - Ooh...maybe you're actually asking a different question. Could you roll the tax into the overall financing? I haven't tested that theory, but sure, I suppose it's possible since the tax becomes part of the overall purchase price. It would be a question for whoever was providing the financing, I'd wager, and isn't addressed in the law AFAIK.

[iuecon99]

I think you're right. It's not a big deal, I just kind of like the idea of paying the $1000 or so over 60 months rather than up front.

[Hemlock140]

If you have a trade or make a down payment the money just goes to the dealership, just like the balance coming to them from the loan. From that they have to pay any taxes, registration, and transfer fees. With good credit many will offer 100% financing, in which case you pay nothing but just sign the papers and take the car. You do not have to pay anyone else for anything up front.