RTL Camino
04-26-2008, 12:15 AM
Of TT&L, Tax is easy - but what is the no BS price we should pay here for Title and License?
...I usually just figure adding 10% for TT&L - but I'm curious what the real numbers are.
galamo
04-26-2008, 07:48 AM
In Texas these are what I think are legitimate fees to a third party on the sale of a new car:
State Motor Vehicle Sales Tax (6.25%), some counties levy an additional tax usually for a special muncipal initiative like building Jerry Jones a giant football stadium, you can purchase a vehicle in the county of your own choosing.
License/Transfer/Title, This varies depending on if you are transfering plates or getting new plates but should be around $100 and it not always accurate at the time of sale. If the cost of this item turns out to be less than what you were charged in Texas the dealership has to refund you the difference.
Inspection fee around $22
Dealers Inventory Tax varies but again by law you cannot be charged more than the actual burden to the dealer.
Everything else is BS (service fees, documentary fees etc) some are limited by law others are not. Always negotiate an out the door all in price, you don't care how they divide it up.
RTL Camino
04-26-2008, 05:29 PM
Thx galamo, that's what I needed to know!
I'm still uncertain about what to expect for the Dealer Inventory Tax, wasn't even aware of this fee.
Sounds like on a $20,000 vehicle:
$1,250 (6.25% Tax)
$100 (License/Transfer/Title)
$22 (Inspection)
So, $21,372 + $X (Dealer Inventory Tax) - depending on the X factor, the 10% rule is probably giving the Dealer a little added profit.
galamo
04-26-2008, 06:11 PM
Inventory tax should not be much, on my $26K Ridgeline it was $61.74, that truck was on the dealer lot for about 5 months before it found its way out of inventory and into my driveway. I'm not sure how this is calculated but it is a pass through cost and by law in Texas they cannot charge you more than what was actually paid for this line item.
I've purchased three new vehicles in Texas, one was special ordered, no inventory tax because it was never in inventory on the taxing date. The other one was minimal, less than $62 if I remember correctly.
Outfitter
04-28-2008, 09:30 AM
RTL Camino,
Ask your dealer about a "Tax Credit". Here in Arlington we have to pay 8.25% in sales tax on a new vehicle but the state rebates the dealership the diffence back. The dealer can then use these credits for "special customers".
They basically pay the sales tax for you with these funds. They don't have them all the time. I think they get them once a quarter.