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ordering vs. buying out of state Wrangler - the melodrama continues

2K views 10 replies 7 participants last post by  sholtzma 
#1 ·
Okay, we need some serious help/advice. My husband and I want a very specific build of Sahara, and we care about the color, and there are no builds like what we want within 500 miles of us. So, we do research and find out from Chrysler headquarters that we cannot order a Wrangler and get the 0% financing, which is one of the only benefits/savings we have in purchasing right now. So ordering is out until after March 1, when we find out whether it's continued or not. So meanwhile, we contact a dealer WAY far away from us and it turns out that they seem to be dying to sell this Sahara that is perfect for us, except it actually has more options on it than what we want. But they've given us such a good deal that it's actually a cheaper vehicle than if we ordered one locally, since we aren't getting any breaks on ordering except maybe 1% below invoice.

The issue is that we cannot get a straight answer from that state, our state (Indiana), or the dealership on how sales tax and "tag and title" fees should be charged. We think that we can purchase the vehicle without all this, and pay sales tax of 7% and excise tax/license fees at our BMV when we get the vehicle home. This dealership has told us multiple stories about "tag and title" fees, which are all over the place depending on what day we talk to them, and they want to charge the sales tax but they have no idea how to document that we paid it. I told them about an Indiana sales tax form that Indiana dealers use and he said the secretary would just download that and I'm like, well that's for Indiana dealers, I think your state probably has your own document for this....they just seem clueless. What's worse, our BMV and the other states department of revenue is totally clueless about it and they just say, go ahead and pay it, I'm sure it will work out in the end. We got burned once by a dealership where we paid cash for a new commercial van (it had a weird Savana Pro package that had motorized doors, and it was the only one within 600 miles) and they collected $500 mysteriously in sales tax that never got to Indiana. We had to call the state's attorney general's office to get that back. The dealership also had no idea what excise tax was, but said that it had to be collected too so that we didn't have to go to the BMV when we got home, it would all automatically be taken care of. Well, that's not the way it works in Indiana. Of course, we haven't financed a vehicle in years, so perhaps all this has to be done for the financing part of it? That's what the dealership is claiming.

So what in the world should we do? I'm stumped. Sorry such a long post. I'm at my wits end....
 
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#3 ·
The dealership said that if we were paying cash, we'd pay the sales tax later, when we got back to Indiana - but when financing, we would have to pay it there to avoid any potential liens on the vehicle. I kind of understand that, I just don't understand how they can charge us for the excise tax and license fees. I've always paid that at the BMV.
 
#4 ·
Couple of things first go to your state's Department of transportation motor vehicles and it'll list frequently asked questions about state taxes what you would do if you purchased a car out-of-state who you would pay etc. Every state is different on how they collect and charge taxes on out-of-state purchases. So go straight to the source

Two- are you buying a 2012 or 2011 because if you build one it's definitely a 2012 if you're buying one it could still be 2011 especially if they give you 0%. to my knowledge nobody in the country is giving 0% at the dealer for 2012. So if it is a 2011 I would research the differences between the 2011 and 2012 because they are significant and thats the reason he's giving you such a good deal. the biggest difference being the motor is totally different much more powerful in 2012 and a little bit better gas mileage.

So I would not rush into this there's a lot of questions to still be answered most importantly finding a dealer that will know how to do your sale properly for out-of-state.

Lastly if you go to a local dealer they can search other dealer websites and make trades depending on the dealer and get the jeep for you.

One thing to note the biggest problem with buying a car 500 miles away from you is that some Joe blow drives it to your dealership probably not taking care of it probably wanting to see "what it can do" which isn't all great for the break in process of the new Jeep.

So this form has lots of information to research on the differences between the two years as well as financing finding 0% or it close to 0% (not the dealership ) on any jeep including 2012 you just need to dig around the forum and find it.

Also look into using the tread lightly discount it's a great way to not have to bargain on a jeep and will get you to a great price. Only drawback is if you're buying a Sahara that's got lots more than you want it may not be the best option although it could still be better.

Good luck and when you get a jeep be sure to wave
 
#5 ·
When financing, that's the law in alot of states to collect the sales tax and reg fees. I live in GA, and the dealer in Fl I bought the Jeep from collected all taxes and fees. The was a slight difference in the cost, so they sent me a refund. No worries! Buy your Jeep!
 
#6 ·
sholtzma said:
The dealership said that if we were paying cash, we'd pay the sales tax later, when we got back to Indiana - but when financing, we would have to pay it there to avoid any potential liens on the vehicle. I kind of understand that, I just don't understand how they can charge us for the excise tax and license fees. I've always paid that at the BMV.
I don't believe cash or financing would matter on sales tax the only thing helps with is you don't have to pay for sales-tax out-of-pocket. So this dealership sounds like they don't know how to do it in my opinion definitely research it with your state government.
 
#7 ·
We are definitely buying a 2012 - we have pictures, window sticker and believe it to be a 2012. There's 0% financing through Ally as a Jeep promotion - that's why we're interested in it. We already qualified for it by applying elsewhere, so we know we can get it. It's unrealistic to expect to do a dealer trade so far away, and we'd rather drive it back ourselves for the exact same reasons you stated.

I called my BMV today and they were clueless. They just said that we needed documentation in the form of an Indiana form for an Indiana dealer to show we paid sales tax. I then reminded her that this was an out of state purchase, to which she said every state is different as is every dealer, and that she couldn't and wouldn't give advice on how to proceed. She absolutely refused to answer any questions related to paying sales tax if financing, and said that was an issue with the bank not with the state. It was a frustrating phone call, to put it mildly.
 
#8 ·
You didn't mention what state your dealer you are puchasing from is in. Each state does things differently. I live in Michigan and puchased my jeep in Indiana. The dealer collected the plate transfer fees and Mi. sales tax at the time of purchase and went to the Mi. SOS and did the transfer and paid the taxes for me.
 
#10 ·
First thing, You can order the jeep and get the 0% when the Jeep is delivered to the dealership.

Sold Order Consumer Incentive Protection
This program protection may be available when a vehicle is sold or ordered for a customer during an incentive program and that program has expired by the time the vehicle is physically delivered. This protection is available unless stated otherwise in the Official Program Rules. A claim for sold order consumer incentive protection must meet the following criteria:
The sale must be documented by a signed and dated buyer’s order, during the program period, which details the agreed upon selling price, and secured by a customer’s deposit with receipts, at time of order. Dealer must print and retain the Order Confirmation Ordered new for immediate production, or selected from in-transit dealer stock, and delivered to the original customer Must be delivered within 14 days of the date the vehicle is received at the dealership (known as X date) Must be delivered to the customer for whom the order was placed and at the originally agreed upon price at the time of order All consumer incentives must be documented as being passed on to the customer on the buyer’s order as described in the Required Incentive Disclosure/Documentation Section If the vehicle is delivered after the end date of the eligible program, the customer will have the choice of either the consumer programs available at the time of customer order or consumer programs at the time of vehicle delivery, but not both The qualification date is the date the dealership and customer agree on the purchase or lease of a vehicle. The purchase/lease terms, conditions, and price of the vehicle must be clearly documented via a completed signed buyer’s order and proof of deposit/payment on the date of sale. This date can override the delivery date for incentive payment. This date protects the customer and/or dealership for any eligible incentives available at the time of sale (excluding
objective-based and stair step programs). Qualification Date is also known as Sale Date Incentive Protection claims are made by entering the Program ID and Qualification Date (in addition to delivery date) on the Exception Claim screen found via “DealerCONNECT > Sales > Incentives Claims Processing > Incentive


Secondly, if financing all banks require proof that sales tax, title and license fees are paid. The reason for this is a lot of people were not paying the taxes, and were not getting a title showing the bank as the lienholder. Now you must pay all tax, title and license fees thru the dealer you are buying from. There is no way around that.

Third, Indiana and the state that you are going into to buy the Jeep might not be reciprocal states. In other words Indiana might not give residents of the state that you are going to out of state buyers exemption and that state does not give IN residents tax exempt status. IL and IN are non reciprocal states. So my question is which state are you going to?
 
#11 ·
Hello Pat,

We were looking to buy in Virginia. There is no reciprocal agreement b/w Indiana and Virginia. The way I understand it, we should only be liable for any difference between Virginia sales tax rate and Indiana sales tax rate - but the dealership is saying that they will collect Indiana sales tax for us. I just don't know how we would ever know that they paid it unless the financing entity (in this case, Ally) ensures that it happens.

The real concern is the excise tax and plates. That's about $650 here in Indiana, and if it gets lost in the shuffle, Indiana will make us pay it again here. I totally understand that a bank would not want any potential liens or problems with the vehicle, but this dealership has given us twelve prices on tag and title fees, and they don't seem to understand what excise tax is. They are so unfamiliar that it seems strange to me.
 
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