Buying question
Thread Starter
Instructor
Joined: Sep 2000
Posts: 247
Likes: 0
From: Central Florida
Buying question
I am thinking about buying a new Corvette and using a USAA incentive and/or points from my GM card. My question is: Do I pay sales tax on these discounts, incentives or whatever they are called?
Thanks
Thanks
Burning Brakes
Joined: Aug 2009
Posts: 1,073
Likes: 43
From: Camdenton Missouri
Depends on how the dealer writes it up. If you use your GM points, have them write it up as being taken off of the price of the car, and not as part of the payment of the car. It's worked for me.
Moderator
Joined: Feb 2006
Posts: 39,134
Likes: 17,984
From: DFW Area TX
It may vary by state. In Texas, you only pay sales tax on the net price paid after all discounts have been applied. If you do a trade-in, then even that is deducted from the price and you avoid paying sales tax on that as well.
Example:
MSRP: ................. $58,000
Dealer Disc: .......... ($7,500)
GM Card Points: ....... ($1,200)
Trade-in: .............($10,000)
Net Sales Price: ...... $39,300
You would only pay sales tax on $39,300.
Example:
MSRP: ................. $58,000
Dealer Disc: .......... ($7,500)
GM Card Points: ....... ($1,200)
Trade-in: .............($10,000)
Net Sales Price: ...... $39,300
You would only pay sales tax on $39,300.
