I was sitting here without much to do, so I went over what the dealer was charging me. Texas tax rate on new vehicles is 6.25%, subtotal was 16452. Well, sales tax they figured in ended up being $1089.15, a tax of 6.62%! It really should be $1028.25. Even with reg, title, lic and fees added into the subtotal, with a 6.25% rate, the total would have been only $1057 for tax....are they trying to rob me of 61bucks?? Could anyone explain how this might have happened?

Also, with further research I found that its $28 or $33 for title, $70.80 for registration....any idea how much the license fee is and what other fees are added into this b/c im missing about $350 from a total of $466.05. Thx for any input.

Below is what I see on my "preferred" customer plan:

New Vehicle Market Value: $16452 (some accessories added in)
Subtotal: 16452
Sales Tax: 1089.15
Reg., Title, Lic., Fees: 466.05
Total: 18007.2

If they did do something wrong, maybe everyone should check their bill.

 

Did they give you a breakdown of the fees? If there is a huge "documentation fee" then that is where they're padding their bottom line. Some states legally limit the doc fee dealers charge (Oregon is $50), some don't.

So, do you have your Fit already, or are you just waiting for delivery?

 

I'm getting mine at the end of the month, haven't paid for it yet. The only breakdown of fees charged is what I listed at the end of my original post. I'm getting a little angry with this dealership, first they add in int/ext protection that I couldn't do anything about...which, after talking to the sales manager, I ended up trading for some accessories, and now this crap. Also, looked up documentation fee in texas on internet and it appears most charge $50, I'm assuming thats what law allows but couldn't find any links to texas law stating it. So, still missing ~$300.

 

Some states allow charging tax on "delivery fees" and some don't. I have read and re-read the California Sales Tax Board documents without finding any hard and fast rule (I am not a lawyer or accountant) but I figure the dealer will take as much as is possible. I will be going in to get my White/Beige Sport AT (with no accessories) tomorrow - supposedly at MSRP + delivery + tax + license + Document + tire recycling fee = $18,110.36

I will let you all know what really happens ;-)

 

$16452 is with destination fee of $500, all weather mats and int/ext protection. So, they are taxing me 6.62% with it all added in, even higher % if not with destination and still higher than 6.25% if they added in ttl and fees before tax. Any way I look at it they are trying to screw me out of something...

 

In California the "tax & license" totals about 10%, which while high, is at least easy to estimate ahead of time (or in the "closers" office where the "extras" part can be unnerving). Good luck in figuring out the Texas system.

 

wow title and license fees r expensive........... I only paid around 200 bucks in houston man

 

Yeah, I think our title fee is $55 and license is ~$108 in Oregon.

 

Aziatiklover,

What dealer did you buy your car from in Houston? Did they hit you with any fees beyond the MSRP, tax, and $200 you paid in licensing (and whatever)?

Was there any documentation fee?

 

Found out my Fit is being built today, so early next month I should be hittin' the road.

 

I've mentioned this before in case anyone doesn't know it -- if you don't have a state income tax, you can deduct sales tax on your 1040. (Or you can take a choice between the state income tax or sales tax.) You can take the standard deduction, but chances are if you have a big ticket item like a car, the itemized deduction will be larger. Make sure you figure in your Fit sales tax when you prepare your tax form for 2006!

 

Whoa! Thanks for reminding!

 

I don't know how it is in other states. I live in Kentucky. In KYwith a new car, they charge tax based on the MSRP (less destination) no matter what it actually sales for.

If you have a trade-in, they deduct the ACV (actual cash value) of the trade, then calculate the tax based on that.

Hope that helps

 

Wow a tax law that's on the consumer's side! CA will need to adopt that law!

 

It's a flat rate of 6.25% for vehicle tax in Texas. Registration for a passenger car is based on age of the vehicle, for a truck its based on weight., Found on 1st sentence of paragragh 3.

 

but, in california. we get to write off the tax on cars/large purchases.

and which model are you purchasing?

 

That's why I only negotiate OTD (out the door). Bad dealers will shoo you off, because they can't rob you. $61 -- who cares. I aim for a +/- $250 range. It's something that will take care of me, and I will take care of it for several years. $466, that's some hefty reg/title/lic fees.

 

Everything went exactly as promised - in and out the door in about 80 minutes (salesman showed me everything, asking about FitFreak, final test drive, paperwork, "Finance Man Office Ritual" and all!) Someone else was drooling over mine - she wanted a white one too!

Anderson Honda of Palo Alto, CA - I have bought 2 Hondas from them with very low hassle factor (but I am not a "haggler over a few bucks off" kind of buyer... but I won't pay over MSRP EVER!)