Is my Genesis Dealer trying to pull a bait and switch?

[Unprocessed1]

So I drove 200 miles in a different state to pick up my GV70.

The sales manager and I agreed on the price and monthly payment in advance of the delivery and he sent me a detailed price sheet that I have a copy of. However, when I was at the dealership reviewing the lease documents, I noticed they only put down about half of the sale tax that I thought should be paid in my state. When I asked the finance guy about it, he said not to worry about it and that "we've had several customers in your state, and it's the way we always calculate it and we've never had an issue." It was my fault for not pushing back more aggressively but I was exhausted at that point and just wanted to take delivery and go home.

A day later and getting a chance to review the lease contract, I believe the dealer sold me the leased car at the agreed-upon price and monthly payment by deceivingly marking up the actual price of the car and reducing the amount of sales tax to make up the difference, which is almost $1,300.

I don't think this is a mistake because the original detailed price estimate from the sales manager (which I agreed to) listed the car sales price for a little below MSRP and seemingly had the correct sales tax amount for my state and had an all-inclusive monthly payment. In fact, the monthly payment is what we agreed to, it just arrives at the number differently...

My concern is that why they try to register the car and get me the plates, they're going to call me and say I owe them another $1,300 in taxes as a way of forcing me to pay a markup for the car when the sales manager told me there was no markup.

What would my recourse be in the event they try to ask me for additional money? Unless it's just sheer incompetence on their part, it would mean their sales manager wasn't honest when he sent me the pricing sheet and we agreed on the deal. I'm inclined to escalate it to Genesis corporate and fight it if they try to shake me down for more money than we agreed on.

 

[tb3573]

I'm inclined to interpret it as you - the sales sheet was correct and now because finance shuffled $ around you're at risk for the state to come back and ask for the additional sales tax. Seems to me like the finance guy is gambling with your money - that the state won't catch it because either they didn't for other customers or those customers weren't smart enough to come back to the dealership when the state smacked them.

I can't help you much on the recourse, but seems there could be some legal recourse as well since it didn't match what was agreed-upon and was put in writing.

 

[TBickell]

And they wonder why they have such bad reputations.

 

[EdP]

So I drove 200 miles in a different state to pick up my GV70.

The sales manager and I agreed on the price and monthly payment in advance of the delivery and he sent me a detailed price sheet that I have a copy of. However, when I was at the dealership reviewing the lease documents, I noticed they only put down about half of the sale tax that I thought should be paid in my state. When I asked the finance guy about it, he said not to worry about it and that "we've had several customers in your state, and it's the way we always calculate it and we've never had an issue." It was my fault for not pushing back more aggressively but I was exhausted at that point and just wanted to take delivery and go home.

A day later and getting a chance to review the lease contract, I believe the dealer sold me the leased car at the agreed-upon price and monthly payment by deceivingly marking up the actual price of the car and reducing the amount of sales tax to make up the difference, which is almost $1,300.

I don't think this is a mistake because the original detailed price estimate from the sales manager (which I agreed to) listed the car sales price for a little below MSRP and seemingly had the correct sales tax amount for my state and had an all-inclusive monthly payment. In fact, the monthly payment is what we agreed to, it just arrives at the number differently...

My concern is that why they try to register the car and get me the plates, they're going to call me and say I owe them another $1,300 in taxes as a way of forcing me to pay a markup for the car when the sales manager told me there was no markup.

What would my recourse be in the event they try to ask me for additional money? Unless it's just sheer incompetence on their part, it would mean their sales manager wasn't honest when he sent me the pricing sheet and we agreed on the deal. I'm inclined to escalate it to Genesis corporate and fight it if they try to shake me down for more money than we agreed on.

Seems to me it should be their headache, not yours. If you have paperwork to an agreed deal, they should honor it. There is always small claims court.

 

[BadTrainDriver]

All that matters now is the numbers on the signed document. You're correct in believing you should have made the agreed upon numbers match the finalized paperwork before signing and leaving with the vehicle. How much sales tax did you pay, and do you know the total sales tax due? Generally with a lease, you only pay sales tax on the portion of the value you using(meaning minus your residual value). You could probably call your local BMV and find out right now. From my experience in the car sales, this is between you and the dealer. Corporate Genesis won't help with this at all. Best of luck!

 

[Unprocessed1]

All that matters now is the numbers on the signed document. You're correct in believing you should have made the agreed upon numbers match the finalized paperwork before signing and leaving with the vehicle. How much sales tax did you pay, and do you know the total sales tax due? Generally with a lease, you only pay sales tax on the portion of the value you using(meaning minus your residual value). You could probably call your local BMV and find out right now. From my experience in the car sales, this is between you and the dealer. Corporate Genesis won't help with this at all. Best of luck!

My state taxes the entire sale price of the car, not just the leased portion. It’s short by roughly $1300. My idea was to contact Genesis Corporate as a way of informing them about one of their dealerships is doing to customers. I even have emails from me telling them how my state taxes leases and they responded with a price breakdown showing the correct sales tax and sales price as agreed upon. They changed the numbers with the actual lease contact.

 

[hd222]

My state taxes the entire sale price of the car, not just the leased portion. It’s short by roughly $1300. My idea was to contact Genesis Corporate as a way of informing them about one of their dealerships is doing to customers. I even have emails from me telling them how my state taxes leases and they responded with a price breakdown showing the correct sales tax and sales price as agreed upon. They changed the numbers with the actual lease contact.

There's no doubt that they are screwing around with you. Keep driving the car and at some point they won't be able to register it without the additional funds and will call you. At that point you hopefully racked up several thousand miles and you can offer that they come to you and pick up the car so they can sell it that way.

 

[Unprocessed1]

There's no doubt that they are screwing around with you. Keep driving the car and at some point they won't be able to register it without the additional funds and will call you. At that point you hopefully racked up several thousand miles and you can offer that they come to you and pick up the car so they can sell it that way.

Hoping they will back off and pay the full taxes if I tell them playing their game will result in some online reviews that include screenshots of the quote they gave me and what they actually did on the contract to swindle the customer out of an extra grand.

I'm wondering if there's any benefit to alerting Genesis Corporate or telling the dealer I want them to get involved. For me, it would be as much as the principle of fighting against what they're trying to do and make them regret doing it than it is about trying to avoid forking over another $1,300 I was never supposed to give them.

 

[csu87]

There's no doubt that they are screwing around with you. Keep driving the car and at some point they won't be able to register it without the additional funds and will call you. At that point you hopefully racked up several thousand miles and you can offer that they come to you and pick up the car so they can sell it that way.

unless the official paperwork that the dealer and OP signed says the dealer is going to pay ALL the sales tax, its not going to be the dealers issue.

OP, what does the paperwork you signed say? because that is all that really matters here. Those BS estimated monthly payment sheets are just that, BS, and arent a contract.

 

[hd222]

unless the official paperwork that the dealer and OP signed says the dealer is going to pay ALL the sales tax, its not going to be the dealers issue.

OP, what does the paperwork you signed say? because that is all that really matters here. Those BS estimated monthly payment sheets are just that, BS, and arent a contract.

Actually that's incorrect because he has evidence that they deliberately miscalculated the tax. An estimate doesn't vary by 1300. It's unfortunate that many people like you don't understand the power of their states consumer protection laws often known as the consumer fraud act. In many states they provide for attorney fee shifting so that you can get representation even for 1300 in losses.

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[Unprocessed1]

I signed this addendum to the retail order (which seems to be separate than the lease contract), and doesn’t list any sales tax since the only line was for sales tax for the dealership’s state.

 

[csu87]

Actually that's incorrect because he has evidence that they deliberately miscalculated the tax. An estimate doesn't vary by 1300. It's unfortunate that many people like you don't understand the power of their states consumer protection laws often known as the consumer fraud act. In many states they provide for attorney fee shifting so that you can get representation even for 1300 in losses.

the unofficial price sheet means nothing.

the official contract means everything.

 

[Unprocessed1]

Here is a comparison of the sales tax on the lease vs. their quote (which was in response to an email from me asking for the quote and noting how VA sales tax is calculated). The finance person told me this is the way he calculates tax for all VA customers...

 

[EdP]

Hoping they will back off and pay the full taxes if I tell them playing their game will result in some online reviews that include screenshots of the quote they gave me and what they actually did on the contract to swindle the customer out of an extra grand.

I'm wondering if there's any benefit to alerting Genesis Corporate or telling the dealer I want them to get involved. For me, it would be as much as the principle of fighting against what they're trying to do and make them regret doing it than it is about trying to avoid forking over another $1,300 I was never supposed to give them.

I don't see any benefit to doing anything. Lots of speculation here but none of us read the contract and specifically know your state laws. Speculation on my part, but the dealer, not you, may be on the hook. Worst case, tell them to come get the car and get something else.

Meantime, enjoy the ride.

 

[csu87]

Here is a comparison of the sales tax on the lease vs. their quote (which was in response to an email from me asking for the quote and noting how VA sales tax is calculated). The finance person told me this is the way he calculates tax for all VA customers...

View attachment 37536View attachment 37537

unless theres something on the 2nd doc saying its a legally binding document, the 1st one is what is legally binding.

is it shady? yes. But this is why you always need to read what you are signing.

You can try asking your sales manager wtf and see if he fixes it

Based on that contract you signed, you also didnt pay any licensing, title and registration fees either that the state is going to want.

 

[Unprocessed1]

I don't see any benefit to doing anything. Lots of speculation here but none of us read the contract and specifically know your state laws. Speculation on my part, but the dealer, not you, may be on the hook. Worst case, tell them to come get the car and get something else.

Meantime, enjoy the ride.

Thanks. I really hope it’s just total incompetence on the dealer's part and they make it right if there’s an issue with registration. Again, the dealer hasn't contacted me about this, but having a strong feeling that's where it's heading and it wasn't an innocent screw-up.

unless theres something on the 2nd doc saying its a legally binding document, the 1st one is what is legally binding.

is it shady? yes. But this is why you always need to read what you are signing.

You can try asking your sales manager wtf and see if he fixes it

No one is questioning whether the lease is legally binding, it's whether the dealer was intentionally deceptive and knowingly miscalculated the sales tax to get an extra $1,300.

 

[kdl]

Question, the Agreed Upon Value of Vehicle includes Net Sales Price and what else? Not too familiar with lease terms but shouldn’t that be the same number?

 

[Unprocessed1]

Question, the Agreed Upon Value of Vehicle includes Net Sales Price and what else? Not too familiar with lease terms but shouldn’t that be the same number?

It’s what they sold the car for before any additional fees. It should have been $58,825. It’s suspect because they marked up that line from the quote while reducing the sales tax.

 

[Etex]

Do you recall signing the 'equivalent' doc to a Certificate of Title and Registration document? On the Virginia form (and other states, as well) the sales price and sales and use tax are filled in. That's usually all DMV cares about, as far as whether anyone is going to come looking for more tax $$$ from you.

 

[Unprocessed1]

Do you recall signing the 'equivalent' doc to a Certificate of Title and Registration document? On the Virginia form (and other states, as well) the sales price and sales and use tax are filled in. That's usually all DMV cares about, as far as whether anyone is going to come looking for more tax $$$ from you.

I did not sign a document like that. Only place I see the sales tax is the lease contract