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  #13  
Old 12-06-2013, 09:06 AM
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Re: Pricing hijinx?

You dont pay tax on a rebate. You pay tax on the difference. Its the price minus the rebate, minus the value of the trade, if you have one (as you already paid tax on that once).

$44,007 (Invoice) - $2,500 (rebate) = $41,507.(taxable amount) (its that simple)

My invoice was around 45K, minus two $500 rebates and my trade was valued at 25K. My taxable amount was 19K at 6% this is $1,140. Making the amount that I owe $20,140. I hope this helps.

45000
-1000 Rebates
44,000
25,000 value of trade
19,000
+1,140 Tax 6% on the 19K only
20,140 amount owed
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  #14  
Old 12-06-2013, 09:12 AM
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Re: Pricing hijinx?

Quote:
Originally Posted by UncleGuy View Post
My... head... is hurting...


Basically, what the dealer I went do did was add the rebate of $2500 to the price, then added tax on the whole thing, then subtracted the rebate of $2500.

So, at the end of the day, the way he calculated it led to higher sales tax and no rebate. That and his demonstrated ignorance about the durango itself along with his lack of knowledge about pricing and incentives led me to another dealership that gave me all the right answers and let me order a durango with a price of about $3000 less. Ended up ordering a Durango R/T AWD with nappa leather, tech, and trailer tow for a little over $42,000 out the door (tax, title, and license fees included).

I'll share my story with the shady dealer because hopefully it'll be of some use to people.

In addition to the above deal about tax and incentives (where he basically gave me no incentive as he added it to the price, then subtracted it out at the end), this dealer didn't know much about the Durango itself:

1.) Said the DVD system came down from the ceiling (we all know that's not true).
2.) Claimed he could order one with a DVD system (not available anymore on the dodge website). Perhaps he's right, but didn't say anything about the probability of a long delay in doing so. Personally, it didn't matter to me, but I think customers should be given a heads-up about that thing ahead of time rather than learning about it after the order is placed and the dealer has your deposit.

Additionally, you could just tell he was full of it:
1.) Didn't want to order me one at all. Wanted to sell one off his lot or another lot despite me telling him I wasn't going to settle and buy a new car if it didn't have everything I wanted (no dealers in over a 200 mile radius had an exact match of what we wanted).
2.) Kept telling me that the incentive I would get would be what was available upon delivery, not what was offered at time of order. This was probably just yet another ploy to get me to purchase one off the lot that day and, frankly, it's downright dishonest because that's not true in the least.
3.) When I told him that it would be fine and I'll take my chances of incentives upon delivery, he responded that the incentives weren't likely to get any better and, in fact, he had "seen the December incentives" and wouldn't buy one in that month and that January isn't likely to be any better.

TRUTH: December incentives came out and they are EXACTLY the same as last month's here in Michigan. Again, pure dishonesty in a shameless attempt to sell a vehicle.

4.) Needed a $5000 deposit. The dealer I ordered from only required $500
5.) When confronted with my knowledge about the Durango, pricing, and incentives, as well as supplier issues that I've learned about on this site (DVD system especially), he kept trying act as if I was wrong and didn't know what I was talking about. Insisted that he had all the right answers despite his demonstration (noted above) that he didn't have a clue what he was talking about.

Now, the new dealer (one I ordered from) was excellent.
1.) Knew everything about the Durango. Probably is a member here.
2.) $500 deposit only, refundable if I change my mind (not going to).
3.) Ordered exactly what we wanted, no trying to sell me anything on the lot. He didn't have it, couldn't find it, and so he ordered it.
4.) Told me I could take the best of November, December, or January (probable delivery date) incentives and wasn't limited to the incentives upon delivery.
5.) Answered all questions, very nice, very accommodating. I'll be buying all future Chrysler vehicles from him if everything continues as smoothly as it started.
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  #15  
Old 12-06-2013, 05:04 PM
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Re: Pricing hijinx?

I just ordered my truck this week from a dealer in suburban Chicago. I had two dealers compete against each other and both did the math the same way.

Negotiated Price - trade + doc fee + filing fee = Total pre-tax price
Total pre-tax price + tax on the above + title and registration = Total Price
Total price - current incentive (currently 1k here) = OTD number

It also doesn't matter where you buy the truck, your sales tax rate is determined where you register the truck (at least in Illinois). Oh ya, $500 was the deposit needed for the order too.
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  #16  
Old 12-07-2013, 10:31 AM
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Re: Pricing hijinx?

Guess I lucked out on the tax thing. My taxable amount was -$456 lol. Odd rebates in Chicago are only $1k.
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  #17  
Old 12-10-2013, 05:24 PM
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Re: Pricing hijinx?

Quote:
Originally Posted by mcfarl58 View Post
Ended up ordering a Durango R/T AWD with nappa leather, tech, and trailer tow for a little over $42,000 out the door (tax, title, and license fees included).
If you don't mind, please share which dealer you worked with. If that final number is correct including TTL then I sure would like to give that dealer a call.
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  #18  
Old 12-10-2013, 05:59 PM
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Re: Pricing hijinx?

Quote:
Originally Posted by spark View Post
If you don't mind, please share which dealer you worked with. If that final number is correct including TTL then I sure would like to give that dealer a call.
Sure. Randy Wise in Clio, MI. It was about $42,600 or so with all included and the options listed. That includes the $2000 incentive they're currently offering in MI and EP price as well.
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