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

[tarhoosier]

Not directly related to the OP but some person(people) on this forum have said that in their situation seeking a lease as an out of state customer was not possible, only in-state customers. I cannot recall the state(s) involved, the posters or the dealers. Cash or financed purchase was acceptable but lease was not. Anyone else recall that or know of such a situation?

 

[Unprocessed1]

Is it worth responding to them now or wait until registration clears or I get a bill sent my way from the dealer or DMV? I’d be fine if the dealer covers any additional sales tax due, and I’m 99% sure extra taxes will be owned to the DMV.

This is what I’d send:

From what I heard from the VA DMV, the sales tax for VA, including leases, is on the entire upfront cost of the car. It’s how I was taxed for my last out of state lease. I assume that Genesis of Freehold will cover any additional expenses if the VA DMV says additional sales taxes are due to register the car since the sale price was increased to reflect a lower sales tax total and reach the agreed upon monthly payment that included all taxes and fees.

Worth sending this response to the dealer now to make it clear I don’t expect to say additional sales tax? Given his line was “you’re fine” sure seems like they’re saying they calculated my taxes correctly…

 

[Etex]

Might be worth a call to a Broker or DMV's to pin down if there is a reciprocal agreement (& details) between NJ & Virginia. Dealer obviously is paying NJ rates, then NJ DMV is dealing with Virginia DMV. Might have to do with title in Lessor's name.

NJ - see below

 

[Unprocessed1]

Might be worth a call to a Broker or DMV's to pin down if there is a reciprocal agreement (& details) between NJ & Virginia. Dealer obviously is paying NJ rates, then NJ DMV is dealing with Virginia DMV. Might have to do with title in Lessor's name.

NJ - see below
View attachment 37573

I’ve always been under the impression you pay sales tax in the state the car is registered. Reciprocal agreement is not what the dealer is pointing to, just the incorrect claim that VA taxes leases like NJ.

 

[ronsal]

I’ve always been under the impression you pay sales tax in the state the car is registered. Reciprocal agreement is not what the dealer is pointing to, just the incorrect claim that VA taxes leases like NJ.

I am only responding to your above statement - NOT to any ways that leases are taxed.
About 6 years ago I was in Ohio and saw a wonderful deal on a new Subaru. Traded my older Subaru and paid the difference - about $21000 for the car plus all the Ohio taxes and fees. When I got back home to Rhode Island and went to the RI DMV to register the car, I had only to pay the difference in sales tax between the Ohio tax that I had already paid and the then current RI sales tax which I believe was about 1 1/2% more than Ohio------a little over $300 (plus of course some ancillary reregistration fees).
I believe that most states honor the compact that the sales tax is paid to the state where the car is bought; and if there is a greater amount owed in the state where the car is to be registered, then that amount is what is paid to the residence state.

 

[EdP]

I am only responding to your above statement - NOT to any ways that leases are taxed.
About 6 years ago I was in Ohio and saw a wonderful deal on a new Subaru. Traded my older Subaru and paid the difference - about $21000 for the car plus all the Ohio taxes and fees. When I got back home to Rhode Island and went to the RI DMV to register the car, I had only to pay the difference in sales tax between the Ohio tax that I had already paid and the then current RI sales tax which I believe was about 1 1/2% more than Ohio------a little over $300 (plus of course some ancillary reregistration fees).
I believe that most states honor the compact that the sales tax is paid to the state where the car is bought; and if there is a greater amount owed in the state where the car is to be registered, then that amount is what is paid to the residence state.

Also depends on location. I bought four cars in MA and the dealer sends a runner to the CT DMV office to do the registration and pay the CT tax. It happens to be convenient that way as it is less than 20 miles. Doubt they would send anyone to Kansas.

 

[ronsal]

Also depends on location. I bought four cars in MA and the dealer sends a runner to the CT DMV office to do the registration and pay the CT tax. It happens to be convenient that way as it is less than 20 miles. Doubt they would send anyone to Kansas.

Correct. I didn't want to get into that, but since you brought it up I will. I believe there is a compact among the New England states that no matter which state you buy, they will take care of allocating the sales taxes between the 2 states, and ALSO register your car properly in your state. No need to have a temp tag if you buy out of state til you can register in your home state. Currently have SQ5 and contacted a dealer in Mass and another dealer in New Hampshire about cars I might have been interested in. Both dealers told me that if I bought in their state, I would leave their dealership with my RI tag, and within a few weeks have the RI registration.