Quote:
Originally Posted by gerbs
You know this is a very good question... According to my dealer, they claim the discounts are "rebates" and taken off the FINAL sales price, WITH tax WITH fees, etc.
So if the price is $55k out the door (including taxes, fees, etc.) then the Team USA discount, loyalty discount, etc. come AFTER that out the door price, instead of coming off the sale price of the vehicle PRIOR to taxes & fees.
This results in about $300-400 more taxes & fees since the vehicle purchase price is more expensive than if the discount were applied to the vehicle purchase price. Does this sound right, or should all rebates/incentives apply to the pre-tax amount?
Any input?
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I don't have any definitive information, but FWIW I've never heard of a manufacturer discount or rebate ever coming out of anything other than the base price.
For this to be true, what this in effect would mean is that the rebate amount varies in value depending on your local state/municipality and the state tax in effect there. In a 9% location, the rebate would be worth less than in Delaware, where there's no sales tax. How does that make sense for BMW? The administrative overhead alone would outweigh the potential savings.
Quote:
Originally Posted by Yoa518
Just heard back from the dealer and he will try to straighten out with the business manager and let me know. He said that it ends me paying more tax for the car and they don't make money of off that. The BMW drive event discount says it cannot by applied to tax title fees ect to me that means is pre tax.
I'll update the forum once I hear
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I'm confused, is he saying that applying the discount "pre tax" would somehow result in more taxes for you? (I'd like to see him justify that!) Or is he agreeing with you that it doesn't seem right to take the rebate off of the total amount (that includes taxes and fees)?