It's quite simple actually, you only pay taxes on the price you get it for. If you get it for 21,900 you pay taxes accordingly. Why would you pay taxes on an MSRP when you are getting it below that? 
At Employee Prices ???
Hello all, Question here ....
With the new GM pricing (until July 3) you buy for employee cost. Do you still pay tax on that amount ?
My dealer is saying in Wisconsin you add the 1400 off in , tax it, and then remove the 1400. I said to him , If Sears has a product for 20 bucks and has it on sale for 18 you do not pay tax on twenty and then remove the 2 bucks at the end. Any lawyers out here ?? That is like an extra 70 bucks tax paid.
Hmmm
With the new GM pricing (until July 3) you buy for employee cost. Do you still pay tax on that amount ?
My dealer is saying in Wisconsin you add the 1400 off in , tax it, and then remove the 1400. I said to him , If Sears has a product for 20 bucks and has it on sale for 18 you do not pay tax on twenty and then remove the 2 bucks at the end. Any lawyers out here ?? That is like an extra 70 bucks tax paid.
Hmmm
1 - 9 of 9 Posts
Essentially, you are getting a rebate on the car to get GMS pricing. Let's say you buy your item for $20 from Sears, mail in a $2 rebate, you get $2, but paid tax on the full $20.
The only difference is that you are getting an instant rebate, no different than handing a cashier at Walmart a $0.20 coupon for shampoo. You still pay full tax on the item.
The only difference is that you are getting an instant rebate, no different than handing a cashier at Walmart a $0.20 coupon for shampoo. You still pay full tax on the item.
I'm not sure about that, if it's a true GMS price you only pay what the sales price of the car is. I don't consider GMS a rebate, I've bought plenty of cars under the GMS plan and only have paid taxes on the bottom line. If you have a trade in that's different story, if they give you $1K in trade in that's added into the taxes.DigDug said:Essentially, you are getting a rebate on the car to get GMS pricing. Let's say you buy your item for $20 from Sears, mail in a $2 rebate, you get $2, but paid tax on the full $20.
The only difference is that you are getting an instant rebate, no different than handing a cashier at Walmart a $0.20 coupon for shampoo. You still pay full tax on the item.
DARK AGE 53 said:I'm not sure about that, if it's a true GMS price you only pay what the sales price of the car is. I don't consider GMS a rebate, I've bought plenty of cars under the GMS plan and only have paid taxes on the bottom line. If you have a trade in that's different story, if they give you $1K in trade in that's added into the taxes.
Then I am confused on how the dealer does not take a loss on GMS unless GM kicks money back to them.
The GMS pricing is at participating dealers only, if dealers think they can do better without the program they'll just sell it like any other time. Dealers who are envoled may not make as much money per car but they don't loss money either. I once bought a GM company used car from the plant, all the dealer had to was the paper work..I know for a fact that the dealer made $600 just for doing the paper work. Another thing to think about is warranty work, without that some dealers would be hurting..plus when it's out of warranty you may bring it to them for service.DigDug said:Then I am confused on how the dealer does not take a loss on GMS unless GM kicks money back to them.
When you go about doing actual GMS ( not sure if this deal thing is any different, it probably is not) you get the car for below dealer invoice. You get charged tax on that amount, then all the other incentives are subtracted from that amount. The dealers can get anywhere up to 5% holdback on a GMS purchase. (again not sure if it is changed for the deal happening now) I am pretty sure this is how it works.
DigDug said:Then I am confused on how the dealer does not take a loss on GMS unless GM kicks money back to them.
I am sure that is how it works! Once a car sells, GM gives them a percentage or just a flat rate on the car sold. Anyhting over the dealer invoice is just gravy, so to speak....
Called the dealer back......
And yes, In WI you pay just as I said in the first post. It does not work like a sale. I am not going to lose out on this car for 70 bucks though .
Thanks all for the input.
And yes, In WI you pay just as I said in the first post. It does not work like a sale. I am not going to lose out on this car for 70 bucks though .
Thanks all for the input.
1 - 9 of 9 Posts
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