Dealership called me, says they forgot to charge sales tax. What.

[BeerMeBruh]

So I've financed and leased vehicles before but I have NEVER encountered this before. I just want to know if any of this sounds fishy or odd. Or if anyone has experienced this before.

I leased a Wrangler almost a month ago and recently I got a call that sales tax wasn't added onto my contract. I looked it over again and indeed the tax lines all say N/A. They want me to go in and sign a new contract and are keeping my payments the same but how in the world are they able to keep the payments the same? Normally taxes are based off the lease payment and paid monthly rather than upfront like financing, I haven't had the chance to go in and see the "new" contract yet because I've been very busy. Any of this sound like a big red flag to anyone?

If I see the contract and feel like it's screwing me over, what happens if I don't agree with it? I just return the car? Obviously one way or the other tax needs to be collected, big brother is gonna get it one way or another.

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[jessedacri]

So I've financed and leased vehicles before but I have NEVER encountered this before. I just want to know if any of this sounds fishy or odd. Or if anyone has experienced this before.

I leased a Wrangler almost a month ago and recently I got a call that sales tax wasn't added onto my contract. I looked it over again and indeed the tax lines all say N/A. They want me to go in and sign a new contract and are keeping my payments the same but how in the world are they able to keep the payments the same? Normally taxes are based off the lease payment and paid monthly rather than upfront like financing, I haven't had the chance to go in and see the "new" contract yet because I've been very busy. Any of this sound like a big red flag to anyone?

If I see the contract and feel like it's screwing me over, what happens if I don't agree with it? I just return the car? Obviously one way or the other tax needs to be collected, big brother is gonna get it one way or another.

I had an issue like this with Moore Jeep in Peoria AZ - they had forgotten to collect enough down payment and hounded me a week after the sale to come back and pay more. Turns out my contract did state a larger number than actually collected at the time of sale, so I honored it and paid them. I would think if the contract was signed by both parties stating N/A for tax you shouldn't have to do anything, but I'm not an expert on this. I just remember the advice I got in my case was "if it's in the contract, you're liable. If it's not, it's tough luck for the dealer".

 

[BDinTX]

I personally wouldn’t be to worried about the redo as long as the monthly payments stayed the same and they don’t ask for additional down. Drive it there empty and make them wash it and fill up the tank. My last truck purchase I got a call from the bank a month later because nobody realized at signing that the VIN didn’t match what I was driving away with. =/

 

[gqgambler]

Its possible that the monthly payment was calculated with the sales tax to give you the final figure, but in the contract they forgot to separate the sums. You're right big brother wants its share and will come after you. I think you would prefer to have them calculate tax on a smaller sum than larger; as your contract is written now they could look at it and say you need to be charged tax on your currently monthly payment. Ask them for a copy of the contract in advance to review before going to the dealership to be prepped for your visit.

 

[zrickety]

When they showed me the extended warranty info, they had added sales tax twice. The payment was higher. He assured me it was correct on the other paperwork. I passed on the warranty and the final paperwork was actually correct. I don't know how the dealers are inputting the numbers in their system, it seems like multiple screens to accomplish one sale. If they say the payment will stay the same, it was probably calculated correctly and just didn't make it to the contract.

 

[BeerMeBruh]

Its possible that the monthly payment was calculated with the sales tax to give you the final figure, but in the contract they forgot to separate the sums. You're right big brother wants its share and will come after you. I think you would prefer to have them calculate tax on a smaller sum than larger; as your contract is written now they could look at it and say you need to be charged tax on your currently monthly payment. Ask them for a copy of the contract in advance to review before going to the dealership to be prepped for your visit.

I guess I freaked out over nothing. I just thought it was so strange for them to want to change things up and blame it on "forgetting" sales tax. I wasn't finding much searching for similar situations so it doesn't seem to happen often. But it turns out they did legit forget to calculate sales tax into it. I didn't want to argue over taxes since I figure the dealership is only collecting them for Uncle Sam and he'll get it out of me regardless.
It was actually Chrysler Capitol who discovered it and kicked back the paperwork, in order to offset the increased monthly from taxes they ended up dropping the money factor, so my payments are still similar but this time tax is included and the overall amount per month ended up being a little less. All other numbers stayed the same.

 

[PaulwithJeep]

They probably held back point on the MF or something to that effect and they are going to give that up to get the taxes put in and make the contract right. Technically you are under contract and it could just be their problem from here but if you are going to resign I would make sure that your out of pocket is the same, your payments are the same and your MF is the same if not better. Look it over close before signing to be sure they aren't being tricky.

 

[BeerMeBruh]

They probably held back point on the MF or something to that effect and they are going to give that up to get the taxes put in and make the contract right. Technically you are under contract and it could just be their problem from here but if you are going to resign I would make sure that your out of pocket is the same, your payments are the same and your MF is the same if not better. Look it over close before signing to be sure they aren't being tricky.

Yeah I looked it over line for line, everything was exactly the same aside from the addition of taxes now. They dropped the MF to balance out the payments and overall monthly payment dropped a few bucks per month. I originally had the tier II credit/MF so they gave me the tier I MF. No additional down.

 

[1quick1]

I personally wouldn’t be to worried about the redo as long as the monthly payments stayed the same and they don’t ask for additional down. Drive it there empty and make them wash it and fill up the tank. My last truck purchase I got a call from the bank a month later because nobody realized at signing that the VIN didn’t match what I was driving away with. =/

I had a similar experience with a different vehicle where we got done with all the paperwork only for me to look when getting ready to drive away and realize they did the paperwork on the wrong vin. Another hour of paperwork made my day...

 

[Redbaron73]

I leased a vehicle earlier this year from a dealership in NC, registered and used in Texas. They had never dealt with Texas before (understandably) and they had some unexpected fees and paperwork that needed to be resigned. They overnighted me the paperwork and I signed it. Ended up because I did a 1 pay lease, I got a check back from the state of Texas, so this all worked out in my favor.

When you are signing the papers, you actually sign a form that requires you to assist if they goof up. Its an errors and ommissions, and lasts for 90 days in most places. Most dealerships will eat what they can, if not all of it, but will need you to sign the paperwork to make it legal. Failure to sign may cause more pain than its worth.

Over the years this has happened to me three times. I lease 3-4 cars a year (business) from different dealerships. Never once have I had to pay anything out of pocket after the original deal was negotiated.

 

[PaulwithJeep]

Yeah I looked it over line for line, everything was exactly the same aside from the addition of taxes now. They dropped the MF to balance out the payments and overall monthly payment dropped a few bucks per month. I originally had the tier II credit/MF so they gave me the tier I MF. No additional down.

Sounds like you won that one. Better for you all around. Someone got yelled at for that.

 

[shelglass]

As long as the payments the same I would go in have them give it a bath and some petrol
for your time. You should take care of this don't mess with Uncle Sam.

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