5% under invoice as OTD or Sale price

digitalbliss

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Karl- Great points, I was unaware that Doc fee is capped in Illinois.



DB- I believe when making these comparisons we are looking at price of the Jeep when discussing one dealer versus another. Your taxes will be the same no matter where you purchase the jeep, I believe we all understand that going in to the decision making process, at least I hope we all we do.

Thanks,
Scott
Scott, yes I believe most of us realize this and are comparing the pretax price of the Jeep. Hower the original post was obviously unsure as he asked if these prices we are comparing are the OTD cost or just the pretax prices. I was simply trying to infer that because all of out taxes may be different, it doesn't make sense to compare OTD prices.





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Carolina88

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Karl- Great points, I was unaware that Doc fee is capped in Illinois.



DB- I believe when making these comparisons we are looking at price of the Jeep when discussing one dealer versus another. Your taxes will be the same no matter where you purchase the jeep, I believe we all understand that going in to the decision making process, at least I hope we all we do.

Thanks,
Scott
Are you saying the sales tax you pay depends on where you live versus what state you purchase in? For example, I live in South Carolina but might end up purchasing a Jeep in North Carolina. (I'll be honest, taxes confuse the hell out of me.)
 

RussJeep1

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Are you saying the sales tax you pay depends on where you live versus what state you purchase in? For example, I live in South Carolina but might end up purchasing a Jeep in North Carolina. (I'll be honest, taxes confuse the hell out of me.)
Your (suppose to be) charged the tax of the State you live in.
 

old8tora

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have a question now. People say good deal is 10% under MRSP or 5% under invoice, Is that to be OTD or just sale price w/0 Tax, doc, licensing?
Friend , with the high gouge prices these days , all of your calculations are "change" , compared to the total you will pay .

For example , if a $50K JL , and you get a "deal" for $45K (10%) , everything else added in will bring the total almost back to the original price .

If you have the big bucks , it doesn't matter .

If you don't have the big bucks , you are biting off too much debt .
 

Karl_in_Chicago

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Are you saying the sales tax you pay depends on where you live versus what state you purchase in? For example, I live in South Carolina but might end up purchasing a Jeep in North Carolina. (I'll be honest, taxes confuse the hell out of me.)
IANAL but, and YMMV, the taxes you pay will be determined by where you register your vehicle - not where you purchase it. Here in Chicago we have the State sales tax + Cook County tax + City tax: if I buy my vehicle in Louisiana (like I did with my 'vette) to bring home to Chicago I owe all of those taxes (and paid no LA tax). Often residents of Chicago or even just Cook County will think they can save money by purchasing in a lower taxing county; they are mistaken. Some people report that they are able to evade these taxes but I don't play that game. Same as some people register their vehicles at addresses of relatives in other zipcodes to reduce their insurance rates, which is straight up insurance fraud. The insurance company will happily collect the premiums up until a claim is filed then may deny it and, if you are lucky, merely refund your last payment and not refer you to the DA for fraud. Life's too short to F yourself over on tax and insurance fraud to save a few bucks. I know that's not what YOU were asking or proposing, just responding to the larger picture.

For YOUR planning purposes plan on the SC taxes. The sales tax rate on vehicles in SC is 5%, but the maximum is $300. Good, right? Maybe, depending on the vehicle. SC is very different than Illinois (my brother and sister live there) as there's a personal property tax that is assessed annually based upon the assessed value of the vehicle. This was done to allow a considerably lower tax rate on real estate. Nothing is free. So every year the owner of a vehicle has to pay a personal property tax on the assessed value and a potentially different tax rate depending on vehicle age. It's really complicated. When my father was alive living in SC the vehicle tax was a major factor in why he chose to buy high quality used cars (he was a retired Marine on a fixed income so ongoing costs were a big deal).

So my advice to you as a SC resident is to talk to somebody much more knowledgeable than me about understanding the potential tax implications of your planned new vehicle purchase. Knowing what your expense stream may be for the first few years of ownership will help you better budget.
 

Carolina88

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IANAL but, and YMMV, the taxes you pay will be determined by where you register your vehicle - not where you purchase it. Here in Chicago we have the State sales tax + Cook County tax + City tax: if I buy my vehicle in Louisiana (like I did with my 'vette) to bring home to Chicago I owe all of those taxes (and paid no LA tax). Often residents of Chicago or even just Cook County will think they can save money by purchasing in a lower taxing county; they are mistaken. Some people report that they are able to evade these taxes but I don't play that game. Same as some people register their vehicles at addresses of relatives in other zipcodes to reduce their insurance rates, which is straight up insurance fraud. The insurance company will happily collect the premiums up until a claim is filed then may deny it and, if you are lucky, merely refund your last payment and not refer you to the DA for fraud. Life's too short to F yourself over on tax and insurance fraud to save a few bucks. I know that's not what YOU were asking or proposing, just responding to the larger picture.

For YOUR planning purposes plan on the SC taxes. The sales tax rate on vehicles in SC is 5%, but the maximum is $300. Good, right? Maybe, depending on the vehicle. SC is very different than Illinois (my brother and sister live there) as there's a personal property tax that is assessed annually based upon the assessed value of the vehicle. This was done to allow a considerably lower tax rate on real estate. Nothing is free. So every year the owner of a vehicle has to pay a personal property tax on the assessed value and a potentially different tax rate depending on vehicle age. It's really complicated. When my father was alive living in SC the vehicle tax was a major factor in why he chose to buy high quality used cars (he was a retired Marine on a fixed income so ongoing costs were a big deal).

So my advice to you as a SC resident is to talk to somebody much more knowledgeable than me about understanding the potential tax implications of your planned new vehicle purchase. Knowing what your expense stream may be for the first few years of ownership will help you better budget.
I already know my annual property tax for the car will be high. My wife leased a 35K Acura last year and her first tax bill was over $800. So I'm expecting mine to start out between $800 and $1,000. I'm just wondering what my sales tax will be with the purchase. A $300 maximum sounds too good to be true. Are you sure it's not $300 on top of the regular sales tax of 7% (the rate in my zip code in SC)?
 

Carlton

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Thx! Tried to negotiate OTD as 10% under MSRP
This will most likely get you laughed out the door/told goodbye. The dealership won't take you as a serious buyer if you are that low. To buy the jeep at 10% Under MSRP including tax, title, and doc fees they would need to sell the jeep to you for 20% or so under MSRP. Won't happen.

In some states this can be accomplished due to tax laws, however. If you trade in a vehicle of equal or greater value to the vehicle being purchased you will not be charged taxes on the purchase. So if you negotiated 10% off of MSRP, your OTD price will not have any taxes. You will still pay title and doc fees which will drop you below the 10% though.

As for tax laws and percentages they can vary greatly. I live in Illinois. 25 minutes from Chicago and 25 minutes from Wisconsin.

Chicago Cook County Tax: 9.5%
Suburban Cook County: 8.25%
Other suburban counties: 7.25%
Wisconsin: 5%

In less than an hour range, there is a 4.5% difference in tax percentages. No matter where you buy, you will pay the percentage that is required by your address/where the vehicle will be registered.
 

Karl_in_Chicago

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I already know my annual property tax for the car will be high. My wife leased a 35K Acura last year and her first tax bill was over $800. So I'm expecting mine to start out between $800 and $1,000. I'm just wondering what my sales tax will be with the purchase. A $300 maximum sounds too good to be true. Are you sure it's not $300 on top of the regular sales tax of 7% (the rate in my zip code in SC)?
Oh my, it appears SC made a change last year. Good news, you no longer pay a sales tax on your vehicle, yayyyyy! Bad news, they now call it an "Infrastructure Maintenance Fee" and raised the cap from $300 to $500, LOL. Orwell would be proud.
==================================================================================
New Vehicle-Related Fee Beginning July 1, 2017

Beginning July 1, 2017, people who purchase vehicles in South Carolina will owe a new type of fee instead of paying a sales tax.

Due to legislation commonly referred to as the Roads Bill, if you buy or lease a vehicle, trailer, semi-trailer, or other automobile on and after July 1, 2017 that will be titled and/or registered in this state, you will owe an Infrastructure Maintenance Fee (IMF) instead of sales tax. The IMF is in addition to applicable title and registration fees and property taxes. You will not be able to title or register the item until you pay the IMF.

The amount of IMF you owe is based on the sale price of the item you buy. You will owe 5% of the purchase price, but it will be no more than $500. If you purchase an item that is $9,999 or less, your IMF will be 5% of the sale price. If it is $10,000 or more, you will owe $500.

You have 45 days to register your vehicle.
==================================================================================
http://www.scdmvonline.com/News/New-Fee-Beginning-July-1-2017
 

Carolina88

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Oh my, it appears SC made a change last year. Good news, you no longer pay a sales tax on your vehicle, yayyyyy! Bad news, they now call it an "Infrastructure Maintenance Fee" and raised the cap from $300 to $500, LOL. Orwell would be proud.
==================================================================================
New Vehicle-Related Fee Beginning July 1, 2017

Beginning July 1, 2017, people who purchase vehicles in South Carolina will owe a new type of fee instead of paying a sales tax.

Due to legislation commonly referred to as the Roads Bill, if you buy or lease a vehicle, trailer, semi-trailer, or other automobile on and after July 1, 2017 that will be titled and/or registered in this state, you will owe an Infrastructure Maintenance Fee (IMF) instead of sales tax. The IMF is in addition to applicable title and registration fees and property taxes. You will not be able to title or register the item until you pay the IMF.

The amount of IMF you owe is based on the sale price of the item you buy. You will owe 5% of the purchase price, but it will be no more than $500. If you purchase an item that is $9,999 or less, your IMF will be 5% of the sale price. If it is $10,000 or more, you will owe $500.

You have 45 days to register your vehicle.
==================================================================================
http://www.scdmvonline.com/News/New-Fee-Beginning-July-1-2017
Thanks for the info. LOL!
 

TaressaB

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I am new jeep buyer, I have been in aminivan for 10 years. I have been to 3 dealerships talking with them about 2018 Sahara JL model. In Ocean blue, I am not asking for many options just cold weather and selec-trac. I did find 1 and they only would give 1500 off MSRP.
So now I did a truecar search and now I have been in touch with 2 dealers that are will to give 3000 off MSRP but I have to order a new 2019 because they can't find Ocean blue and the few options I want and not will trade with the dealership that has it.
So as of now, to order msrp is 45,270; Discount is 3,295; doc fee is 369.
Should I wait? I have no idea what is the best way to go
 

brettJLg

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My suggestion, as always, is wait until the very last day of the month (obviously)! If you're willing to bend on color or options, you can usually find a dealer or salesperson that are desperate to move a car.

For comparison sake, I picked up my JL (Sahara, LEDs, 8.4, selec trac, body color hard top, leather, safety package) for $42,568 with little negotiation with a MSRP of $51,150.

Yes - there were about 800 in random dealer BS, but, with trading in my JKUR I ended up reducing my tax "bill" to about $450 bucks here in GA. Tack it all on, still purchased the car for a hair under $44K "out the door".

These deals are out there, but you have to strategize. Get the financing done prior to walking in the door, set a reasonable expectation for trade or monthly or total out of pocket, and you can typically find what you want. You may just have to sacrifice an option or color - luckily for me it was just headliners which are easily replaceable!
 

digitalbliss

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I am new jeep buyer, I have been in aminivan for 10 years. I have been to 3 dealerships talking with them about 2018 Sahara JL model. In Ocean blue, I am not asking for many options just cold weather and selec-trac. I did find 1 and they only would give 1500 off MSRP.
So now I did a truecar search and now I have been in touch with 2 dealers that are will to give 3000 off MSRP but I have to order a new 2019 because they can't find Ocean blue and the few options I want and not will trade with the dealership that has it.
So as of now, to order msrp is 45,270; Discount is 3,295; doc fee is 369.
Should I wait? I have no idea what is the best way to go
What's your location and how far are you willing to travel for a good deal?
 

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