New Car Dealer says they forgot to charge me tax

My favorite part of the story is when the lying bully tells the OP that he is a terrible person and that he has no respect for him. These kind of stories warm my black heart.

Anyone who thinks salespeople are always professional and don’t browbeat people into doing what they want should listen to this: http://www.thisamericanlife.org/radio-archives/episode/513/129-cars NOTE: the Internet version of this episode includes un-bleeped curse words.

Many salespeople sell cars by being aggressive, and it reinforces their behavior when that behavior makes them successful. Selling cars isn’t like most other businesses. The salesperson wants to close the deal, regardless of whether it leads to repeat business.

Bully is an understatement
him telling me that ‘I thought we were friends’ I almost fell over! Yea, the best kind of friend I would want
anyone trying to sell you something is NOT your friend
but I am supposed to be so naive


@talos

Why on earth would you voluntarily give any money to this dealer if you’re not liable, especially after the salesman yelled at you and called you a lousy and evil person?

If that request for payment ever shows up, I would ignore it

After making empty threats, they don’t deserve one more red cent from you

And as far as service goes, I’d find someplace else to take the car. Considering how unprofessional they acted, I’d not trust them to maintain your car properly

I for one think this story is 100% true

I spent some years at a dealer, and I’m still in the industry. I know about some of the shady and incompetent goings-on

You couldn’t make this stuff up if you tried

I happen to also know that the part about Toyota corporate only being able to keep track of disputes is true. I once had an issue and called Toyota corporate. They also told me they could only keep track of things. I told them the name of the dealer and the nature of the problem. They really didn’t care. They asked me if I wanted them to send me a survey. I said don’t bother, because I’ll give them an F

I’m thinking the same way @TwinTurbo is. I’m amazed that the state would ever let the car be registered without proof of Tax payment. The tax payment on every state I lived falls to the owner of the vehicle. Cars are different from anything else you buy since you have to license and register the vehicle. You don’t license and register the shoes you buy. So the collection of tax on those type of items is the store. When I buy something in MA I’m charged a Tax (if the item is taxable). But if I buy a car in MA I’m NOT charged a sales tax.

When I got back from Nam and was stationed at Ft Campbell Ky. I bought my first car in Tennessee. But registered it in NY. I didn’t pay any sales tax in TN. When I registered the car in Ny
I had to pay a 7% usage/sales tax there.

I don’t doubt this is true
I’m just amazed that it could ever happen. States LOVE to collect their tax. So the dealer paid the tax, but didn’t collect it from the buyer. Again
that’s weird. How could they FORGET a couple thousand dollars? Why would they ever do this. If I was the owner of the dealer I’d FIRE my finance guy for doing that. Most decent dealers have software that will automatically add in the sales tax to the final price.

This just seems to weird to me.

@The Same Mountainbike–I was able to locate some information on that scamming Honda dealership, and my memory was apparently faulty. Instead of 3 or 4 dealerships, these two brothers owned
at least 10 dealerships. And, this info regarding the case that the State of NJ filed against ALL of their dealerships alleges far more than “just” the de-contenting of new cars.

While this doesn’t have all of the details, it does contain enough to be both fascinated and appalled that scam artists like this were able to amass enough money to own so many car dealerships. But, I guess that scam artists are the best at amassing large sums of money


I’ll echo calling the AG office and a local TV station with a consumer affairs segment. Even though the situation is pretty much over with, letting others know of their shady dealings will go a long way to help others out. It may even get more people to come out and say “Hey, that place done that to me, too.”

Oh my God, VDC. Thanks a million for the update. The scope of these guys’ scams is beyond belief. If you wrote that into a TV script, everyone would say it was too outrageous to be believed.

I hope everyone involved goes to prison for a very, very, very long time. And I hope some of their former customers happen to be there.

There is a very well known NASCAR team owner and new car dealer who has had some pretty checkered dealings in the past. He pleaded guilty to misdeeds with Honda and got off very lightly after most charges were dismissed. President Clinton pardoned him a few weels after receiving a 500 grand donation from the NASCAR owner’s buddy


Ah, ethics
 :wink:

1 Like

I suspect that the $2700 will be coming out of the salesmans next check which will also be his last.

Probably why he was such a grouch.

Years ago, I was fired from a few jobs, for incompetence. This was before I was turning wrenches.
I don’t recall yelling at anybody for my own mistakes. I took my licking and moved on to the next job, where I didn’t make those same mistakes.

I’m late in this thread so maybe this has been covered. In California the auto dealer is responsible for collecting and paying the sales tax. It’s likely that the salesperson is trying to get the OP to pay for something that the dealer is holding the salesperson responsible for.

I wouldn’t pay it unless I had agreed to the higher price and clearly knew it was an error. If the dealer/salesperson has threatened you, tell him to provide text of the law. You don’t need to act. He does. Even if you were legally responsible you would have an opportunity to pay the tax you owed to stop the process. Hang on to your sales receipt. If it says N/A for sales tax, then they have agreed to take responsibility for it.

Are you all as tired of this as I am? I am really

Today’s update, Saturday mail arrives with a registered letter from the dealership. So now at least I have something in writing about this situation. Another couple names of people at the dealership included.
They are continuing to threaten me with several things. Firstly, now they say: ‘We have confirmed with the State of California that I do not hold a valid ‘resale permit’ and my purchase is subject to all applicable taxes.’ Oh, and what might a resale permit be? Is that the Title? right

The threats: 'If necessary, we will report the nonpayment to the following agencies: Board of Equalization, Department of Motor Vehicles’
Again, bulls**t.
I already spoke with the BofE and they told me that if I have the title in my name, it is paid for, and they wouldn’t get involved. This is from their expert on sales tax issues.
I just got a printout on the vehicle record at the DMV, and it shows everything has been paid, and there are no problems with it.

I now do not want to pay them one cent. This has taken up too much of my life already. All the lies and other tactics have worn away at me enough.

I am going to compose another letter to send back to them, again explain my position and how I feel I have been treated, and no money.

I would not respond to them anymore. All you can do is make things worse. Either get a lawyer to advise you (and possibly write a letter for you) or just collect their letters in case you eventually have grounds for harassment.

I would also not accept certified letters anymore. They don’t need to certify them. The only reason they would do that would be either because they don’t know better or they think they will scare you into responding.

I did some research, and a ‘resale permit’ as they put it, is probably a ‘resale license’ which is something someone who sells and buys cars would need to have. I am not any such person, I am a private citizen that bought a car. My gosh, apparently no one there has a clue.
I have called a lawyer, but didn’t want to push into that, but now, since they continue to harass me with these bogus threats, I might have to go that route, and have them write the letter.

It is still unknown why the closer believed this was a tax exempt sale but since they have verified you don’t have a brokers license this suggests how they were mistaken during the sale.

@talos

It might be worth having that lawyer send a “cease and desist” letter to the dealer. I suspect when they receive correspondence with the lawyer’s letterhead, they’ll leave you alone, because everybody now knows the game is over, and they lost

Make sure the letter clearly states that you don’t owe them anything, because they are the ones that made the mistake, and they’ll have to eat the costs. Also make it clear that since you checked with the DMV, and you are in the clear with them. Have the letter tell them to stop harrassing and threatening them. Make sure this comes across loud and clear.

Good luck

You need a lawyer. Fast. Yours is not a car problem, it’s a legal problem.

Sincere best.