New car gouging

In 2019 I wanted to surprise my sister with a new car. At the dealership we had to pay tax and registration for CA. Patty and her family live in Gig Harbor, WA. They had to pay WA registration a week later at home. I was not happy. CA registration was like $700. WA did not make them pay sales tax.

California states if the car hits the pavement-sales tax is due. You can ship the car with a CERTIFIED BILL OF LADING directly from the dealer and not pay sales tax. Many "higher end" dealers are familiar with this process. Your average Ford, or GM dealer probably isn't. Maybe there is another way as stated by GON above.
 
California states if the car hits the pavement-sales tax is due. You can ship the car with a CERTIFIED BILL OF LADING directly from the dealer and not pay sales tax. Many "higher end" dealers are familiar with this process. Your average Ford, or GM dealer probably isn't
And the cost of shipping was at least $900. I was OK with the sales tax, but why did we have to register the car in CA when they were driving it home to WA in a week? I think that was at least $600.
 
I thought most states do not collect their sales tax from out of state residents purchasing a vehicle. Or else there is a method to apply to the state to have the sales tax refunded after the out of state purchase. In every state where I have purchased a vehicle as a non-resident, the dealership only collected the sales tax rate for my home state. So California is different? Who knew?
 
I thought most states do not collect their sales tax from out of state residents purchasing a vehicle. Or else there is a method to apply to the state to have the sales tax refunded after the out of state purchase. In every state where I have purchased a vehicle as a non-resident, the dealership only collected the sales tax rate for my home state. So California is different? Who knew?
In this case, the person who was doing the buying IS a resident of CA, the dealer that the car was bought at was in CA, and was going to GIFT the car to a resident of WA. The car would then be driven from CA to WA.
Sales tax and registration is required to be collected in this case.

If the CA Resident bought the car from a dealer in WA, and then Gifted the car to the WA resident, then he probably would not have had to pay reg and tax, as that would be on the person who is GIFTED the car.

What the CA resident should have done is provide the WA resident the money, and they could have bought the car from where ever they could get the best deal. If it's in CA, then they would need to have the car delivered in order to avoid the CA registration and Tax fees.
 
In this case, the person who was doing the buying IS a resident of CA, the dealer that the car was bought at was in CA, and was going to GIFT the car to a resident of WA. The car would then be driven from CA to WA.
Sales tax and registration is required to be collected in this case.

If the CA Resident bought the car from a dealer in WA, and then Gifted the car to the WA resident, then he probably would not have had to pay reg and tax, as that would be on the person who is GIFTED the car.

What the CA resident should have done is provide the WA resident the money, and they could have bought the car from where ever they could get the best deal. If it's in CA, then they would need to have the car delivered in order to avoid the CA registration and Tax fees.
Close... I wrote the check, that's all. They sigmed all the papers, my name was not on the deal at all.
I paid CA sales tax and registration. Against my wishes, they registered it to my Los Gatos, CA address.
I was livid.

They drove the RX450h back to WA and had to pay WA registration. You are right; I should have had them find a car there, but I wanted to do a 1 time big surprise for my little sister. I am trying to be close with her at this point in our lives.

I got the plates a few weeks later...
 
Close... I wrote the check, that's all. They sigmed all the papers, my name was not on the deal at all.
I paid CA sales tax and registration. Against my wishes, they registered it to my Los Gatos, CA address.
I was livid.

They drove the RX450h back to WA and had to pay WA registration. You are right; I should have had them find a car there, but I wanted to do a 1 time big surprise for my little sister. I am trying to be close with her at this point in our lives.

I got the plates a few weeks later...
So-paying sales tax was cheaper than using a shipper? That's how sales tax is avoided on an out of state purchase in California. So--I am assuming a couple of things-That the sales tax and License in each state (California/Washington) far out weighed the $900.00 to ship. And both you and the dealer did not know the steps to ship the car and avoid California sales tax and License. I mean-respectfully if you went in to this situation not doing research you really can't fault the dealer.
 
So-paying sales tax was cheaper than using a shipper? That's how sales tax is avoided on an out of state purchase in California. So--I am assuming a couple of things-That the sales tax and License in each state (California/Washington) far out weighed the $900.00 to ship. And both you and the dealer did not know the steps to ship the car and avoid California sales tax and License. I mean-respectfully if you went in to this situation not doing research you really can't fault the dealer.
Guilty in the 1st degree.
I could say the dealership could have given me better advice, but as you say, "Blame yourself!"
 
Guilty in the 1st degree.
I could say the dealership could have given me better advice, but as you say, "Blame yourself!"

I can't recall if you mentioned what vehicle you purchased. But if it was a Ford, GM, Toyota the dealer may in all likelihood not know how an out of state purchase works. AS I mentioned, Exotics (or semi Exotics)) like Porsche, Audi, and even the more expensive and exclusive dealers usually know.

It's a good thing you have plenty of money-we all make mistakes.
 
I can't recall if you mentioned what vehicle you purchased. But if it was a Ford, GM, Toyota the dealer may in all likelihood not know how an out of state purchase works. AS I mentioned, Exotics (or semi Exotics)) like Porsche, Audi, and even the more expensive and exclusive dealers usually know.

It's a good thing you have plenty of money-we all make mistakes.
2019 Lexus RX450h, white on black. At this point in my life, I was just trying to do something nice for my little sister. We were not that close, and money is just money, but I really wanted to do something special for her. I picked up Patty and Mark at the San Jose Int. Airport and drove to Putnam Lexus in Redwood City. A nice Mom and Pop dealership. Mark knew what was going on... I lied and told her I had to take my car in for a recall. When we got there the RX was waiting. She had a Ford Explorer years ago and loved her "Expolder". After a quick test drive around Menlo Park and the Stanford area, I did my part and left. Lexus gives new owners a tutorial. They drove it home to WA a few days later. Their son Brandon said their RX was "weird"...
 
There wasn't a signed contract because they had no vin number at the time. And they had no real idea when it would be manufactured. This is a huge Toyota dealer that had 14 new cars to sell on the day we were there. But they had a full complement of sales people which I didn't understand. They didn't have any used cars either. Are dealers getting money from the govt. like the airlines are?

The sales model has changed. The focus now for sales people is getting customers to add their name to waiting lists, place deposits, and order cars. Follow-up via phone and email is the name of the game and the new normal. Just because there is very little physical inventory doesn't mean the sales process stops. If the sales people are 100% commission it doesn't really cost the dealership anything to have staff there. Might as well see if they can generate orders and build up the customer/prospect database.
 
The sales model has changed. The focus now for sales people is getting customers to add their name to waiting lists, place deposits, and order cars. Follow-up via phone and email is the name of the game and the new normal. Just because there is very little physical inventory doesn't mean the sales process stops. If the sales people are 100% commission it doesn't really cost the dealership anything to have staff there. Might as well see if they can generate orders and build up the customer/prospect database.
A Deposit without a VIN is useless. If you make a Deposit and can't get a VIN in a week or so-you have literally nothing. I stopped by a Toyota Dealer yesterday-there were 8 guys standing in front. They had a few new cars no trucks. Toyota HAS NOT RELEASED PRICING or EPA estimates, on the 2022 Tundra and it's my understanding Toyota has told dealers not to take Deposits-but they way they are getting around it, is that the Deposit is just a place in line-not vehicle specific.

There are guys on the '22 Tundra FB page who are drooling all over themselves to get one of these trucks and calling dealers all over the country.-to try to position themselves to be "one of the first". To me-it's non-sensical.
 
A Deposit without a VIN is useless. If you make a Deposit and can't get a VIN in a week or so-you have literally nothing. I stopped by a Toyota Dealer yesterday-there were 8 guys standing in front. They had a few new cars no trucks. Toyota HAS NOT RELEASED PRICING or EPA estimates, on the 2022 Tundra and it's my understanding Toyota has told dealers not to take Deposits-but they way they are getting around it, is that the Deposit is just a place in line-not vehicle specific.

There are guys on the '22 Tundra FB page who are drooling all over themselves to get one of these trucks and calling dealers all over the country.-to try to position themselves to be "one of the first". To me-it's non-sensical.

Every customer is different.

For many buyers, just getting to the top of the waiting list is what they want. They want to be the first. If it means putting down a deposit to have the first "option" of buying the next delivered dealer-stock unit, they will jump on board. The customer is happy to be next, the dealer has a fish on the hook [and some of their money], and the salesperson has added another "hot lead" to the database.

Other people don't want to leave deposits unless they know that deposit is getting them a specific vehicle. Some prospective buyers are more comfortable doing that. If the automaker doesn't take orders and goes strictly on dealer allocation, the customer may add their name to the bottom of the list but not leave a deposit. They will get in the database as a "warm lead" or "cold lead" and might eventually get a call from the salesperson, but most likely they will never hear back. They are also free to shop other dealers and buy whenever or wherever they want since they do not feel financially tied to one dealer due to a deposit.

Being in the market myself for a new car, I refuse to go on waiting lists or order a vehicle (tried ordering once when I was younger...never again!). I also will not buy from any dealer that adds a "market adjustment". I always buy from dealer stock. I want to see, feel, test drive the exact vehicle I am considering before plunking down any money. When the right vehicle comes along I will buy it. I don't need a specific color [my only rule is no black or fire engine red], or an exact custom spec of options. My current car will soon be 7 years old. Bought it new in 2015 from dealer inventory at almost $6,000 off since it had been sitting in inventory for 5 months before I bought it [those days are obviously over.] It continues to do everything I ask of it, so no real hurry to replace it aside from slowly going mad from numerous squeaks/creaks/rattles that have developed as it ages.
 
The Chip shortage is making buying a new car difficult or darn near impossible. We bought one late August and selection was very limited. Glad we did it then cause we didn't want to get a 2022.
 
This week I investigated prices for a new Kia Telluride EX in the areas of Chesapeake, VA and eastern NC. Some dealers have the balls to add $5,000 to the Moroney sticker, with one crook adding $10,000 to the $44,000 MSRP. Talk about shady business practices!
 
The consumers usually prove themselves to be the fools the businesses think they are.
As much as I hate to say it, yes. Dealerships are not in the business to give you a good deal.
No offense, but I kinda chuckle at people who think they beat the dealership. That's exactly what they want you to believe.

It's just the market. Many people said, "That house is too expensive!" Well, wait a few years (or even months) and see where that got you.
It's just the market.
 
Every customer is different.

For many buyers, just getting to the top of the waiting list is what they want. They want to be the first. If it means putting down a deposit to have the first "option" of buying the next delivered dealer-stock unit, they will jump on board. The customer is happy to be next, the dealer has a fish on the hook [and some of their money], and the salesperson has added another "hot lead" to the database.

Other people don't want to leave deposits unless they know that deposit is getting them a specific vehicle. Some prospective buyers are more comfortable doing that. If the automaker doesn't take orders and goes strictly on dealer allocation, the customer may add their name to the bottom of the list but not leave a deposit. They will get in the database as a "warm lead" or "cold lead" and might eventually get a call from the salesperson, but most likely they will never hear back. They are also free to shop other dealers and buy whenever or wherever they want since they do not feel financially tied to one dealer due to a deposit.

Being in the market myself for a new car, I refuse to go on waiting lists or order a vehicle (tried ordering once when I was younger...never again!). I also will not buy from any dealer that adds a "market adjustment". I always buy from dealer stock. I want to see, feel, test drive the exact vehicle I am considering before plunking down any money. When the right vehicle comes along I will buy it. I don't need a specific color [my only rule is no black or fire engine red], or an exact custom spec of options. My current car will soon be 7 years old. Bought it new in 2015 from dealer inventory at almost $6,000 off since it had been sitting in inventory for 5 months before I bought it [those days are obviously over.] It continues to do everything I ask of it, so no real hurry to replace it aside from slowly going mad from numerous squeaks/creaks/rattles that have developed as it ages.
You also paid a market adjustment; it just happened to be negative.

Dealer charges $6k above sticker, they are called unethical and are accused of gouging people.

Buyer pays $6k under MSRP they are called smart and good negotiators.

People expect dealers to never charge above MSRP when desirable cars are in short supply, yet demand they sell well under MSRP when their lots have excess product.
 
The price of the vehicle is one thing, it's all the worthless overpriced crap they try and sell you in the finance office or on the addendum that get me. Paint and interior sealant are worthless, nitrogen in the tires, wheel insurance and all the other useless scam products add up to thousands. Who needs VIN etching or an additional aftermarket security alarm when there is one factory installed?
 
The price of the vehicle is one thing, it's all the worthless overpriced crap they try and sell you in the finance office or on the addendum that get me. Paint and interior sealant are worthless, nitrogen in the tires, wheel insurance and all the other useless scam products add up to thousands. Who needs VIN etching or an additional aftermarket security alarm when there is one factory installed?
I thought I was going to get hard pressured to buy the extras. Guy went thru the routine, tire & wheel package, prepaid maintenance, over warranty insurance etc. Told him no thanks to everything, he took it in stride.
 
I thought I was going to get hard pressured to buy the extras. Guy went thru the routine, tire & wheel package, prepaid maintenance, over warranty insurance etc. Told him no thanks to everything, he took it in stride.
Same as my recent Venza purchase. Easy peasy. I'm guessing after I refused to pay a $499 doc fee they figured their chances were slim.
 
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