rebates taxed?

[spin1966]

Hi! I've got a quote from my dealer on a 2011 Edge and he's telling me that I have to pay tax on the price before the rebates. Does anyone know if that's really the case...or is he just trying to get a few extra bucks out of me?

[akirby]

Hi! I've got a quote from my dealer on a 2011 Edge and he's telling me that I have to pay tax on the price before the rebates. Does anyone know if that's really the case...or is he just trying to get a few extra bucks out of me?

 

100% correct. Think of them as mail-in rebates - you buy the product including taxes then you get money back. It works the same way except the dealer usually deducts the rebates from the total cost and keeps the rebate. But if you want Ford will mail you the rebate check directly.

[thinguy]

Depends on the state whether the rebates and trade-in come off the negotiated price before or after tax

Here's a chart

 

http://www.edmunds.com/car-buying/what-fees-should-you-pay.html

[akirby]

Depends on the state whether the rebates and trade-in come off the negotiated price before or after tax

Here's a chart

 

http://www.edmunds.com/car-buying/what-fees-should-you-pay.html

 

I knew the sales tax on trade-ins varied by state but did not know the tax on rebates varied. Thanks for the chart.

[k1200rsport]

Here in SC our max sales tax is only $300 on vehicles, I think it will be by state.