Hello everyone,
This is my first post in the forum.
I am looking at the 2010 Edge recently and almost close the deal with one local dealer. But the dealer charge me tax on the incentives from ford. For example, if the vehicle MSRP is 36000, ford incentive is 3000, tax rate is 10%, then what in my mind about the vehicle price is:
(36000-3000) x (1+10%)=36300
But the dealer charges me like this:
36000 x (1+ 10%) - 3000 = 36600
This is the first time I deal with dealers for a brand new vehicle, it really confuses me. When I did my home work in internet, nobody mention the incentives are charged for tax. All the pricing website gives price after incentives (MSRP or Invoice) as the list price minus incentives directly.
What do you guys think? I live in Illinois.
Thanks in advance. Every word is appreciated. Thank you.