Random vehicle-buying question for dealership folk
- Thread starter N-Smooth
- Start date
No in a lease you pay sales tax on the monthly payment. So you pay zero sales tax upfront and just pay sales tax on your monthly lease payment every month. If you buy it out you go re title the car and pay sales tax at the dmv on the payoff amount. They sent the title with the bill of sale and everything to do it.. But if I never retitle it?
- Location
- Stinkwater
Just guessing, but if you don't retitle it then it's not actually in your name, and if it gets totalled then the dealership gets the check?
It’s registered in my name, it’s insured in my name. I have all the documents showing there is no lien on it. It could be a problem I guess but based on my previous experience with insurance they would do a payoff request before sending a check to a lien holder anyway and not just send the full check to them expecting them to give me the difference. So I feel like it wouldn’t be an issue
TurboMinivan
Still plays with cars
- Location
- Lehi, UT
This is correct.
This is also correct.
This may or may not be correct. When you, the car owner, buy out your lease--ie, you pay the bank the total amount due in full--the bank will add sales tax to the amount due. They do this because (a) they know you haven't paid tax on that amount, and (b) they know you are required to do so. When they send you paperwork, included will be evidence that you've paid your required tax... which prevents the DMV from double charging you. Without said paperwork, the DMV would not let you register the vehicle until they collected the full amount of sales tax due.
Having said all that, once you buy out a lease the DMV removes the bank from the registration and re-registers the vehicle in your name only. If there is still a bank/lease listed on the reg, then the state thinks the vehicle is still being leased... which means somebody somewhere dropped the ball. Once the snafu is discovered, I fear it may not turn out pleasantly for the car owner. Good luck and tread lightly.
TurboMinivan
Still plays with cars
- Location
- Lehi, UT
Sure, I'll play. Granted, I'm no expert... but I can see at least the following possible negative outcomes.
1) The tax commission finds out and merely bills you for the full tax amount plus past-due late fees, interest, etc.
2) The tax commission finds out, charges you with tax fraud, and you end up in federal pound-me-in-the-ass prison.
3) The DMV discovers you're driving on registration/plates not belonging to you and fines you.
4) You t-bone another car, and someone is severely injured or dies. Following standard protocol, the other insurance company goes after the name(s) on your registration, meaning they go after you and the bank. The bank turns around and sends their entire legal team down on you to make your life miserable on top of what the other insurance company does. You end up destitute.
5) You sell the car privately; the new owner goes to register it, the DMV discovers the snafu, they send the state after you for sales fraud, and you end up in federal pound-me-in-the-ass prison.
Or maybe you'll get away with it scot free and nothing bad will happen. Who knows? I'm just spit ballin' here.
(And that reminds me--I need to watch Office Space again.)
- Location
- Stinkwater
Not the kind you were hoping for anyway.
Unimog
Eric
- Location
- Stansbury Park, UT
There are sites that will list some rates, but my experience has been that they do really well with mortgage rates, but don't list much for auto loans. You can start at a place like bankrate.com and see what they show. Then I would check credit unions around you. You don't need to be a member and you don't need to apply for a loan - just check their website for their best rate. Now, if you have excellent credit (750+), you can expect to beat what is published on their site by a percent or so. If your credit is not so good, you will likely pay more than the published rate. The best rates are likely to come from a credit union. You can apply to be a member at pretty much any credit union by opening an account and depositing $5-10. You typically don't need to do this until your loan is tentatively approved. If you don't want to go through all of the above, just open an account at a well known credit union, like Mountain America and go with that.
- Location
- Grantsville, Utah
We just got 2.7% with MACU. 6% is nuts.
Same. Chance, check out MACU and America First. They had the best rates available (2.74 and 2.99). I’ve always banked with MACU.
6% is criminal. I can’t believe they made you do that.
I got a thing in the email from macu a few weeks ago to take an additional 0.25 % off the rate on a new loan. Bought a used challenger last week from a friend at 2.5%. I'm all about mountain america.
The 2.74% rate was listed on their website. I'd say if you want it to actually progress I'd go in person. I filled out the form online and didn't hear back for a week before giving up and calling on it. It wasn't a big deal in this case but if I was wanting to close quick it would have been a hassle.
The 2.74% rate was listed on their website. I'd say if you want it to actually progress I'd go in person. I filled out the form online and didn't hear back for a week before giving up and calling on it. It wasn't a big deal in this case but if I was wanting to close quick it would have been a hassle.
Pile of parts
Well-Known Member
- Location
- South Jordan
I bank with MACU. However, Hercules had the best rate on the last loan I did. They also had a cash back offer. I can't remember the percentage of cash back and it did have a maximum amount. Either way, it put cash in my account for taking out the loan I was taking out anyway. Not sure if the offer is still going.
DesertRam
Active Member
- Location
- Southern New Mexico
MACU treated us really well on financing for our fifth wheel a few years ago. I had never even heard of them, but we bought the trailer in Salt Lake, so that's who they hooked us up with. Great rates and very easy to deal with. I now keep a savings account and a credit card with them.