Quote:
Originally Posted by EnerJi
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.
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)?
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Delaware DOES have a sales tax for cars. Little known fact...