500 Dollar Deposit

[marcants1977]

Dear All,

Those of you who have been lucky enough to purchase your Prima's.  My time is coming near and I was wondering if you could explain how the 500 dollar deposit was deducted from paperwork in your deals.

I have a 20,400 sticker on my prima. Are the taxes calculated on this amount and then the $500 deposit is deducted or is the tax calculated on 19,900?

The salesman I am working with says the deposit has to be taxable. Can anyone shed some light on this.'

Thanks,
Guido.

[Mike S]

The $500 deposit is part of the price of the car and is taxable.

[Welshy]

When we bought ours this is how i was done:

Price of car - $20,350
Sales taxes - $1,780.63 (CA tax @ 8.75%)
I'm leaving out the other cost bits such as add-ons and doc fees/registration etc...for this example
Total - $22,131.63 and then minus our $3,000 cash deposit and the $500 deposit. They didn't tax us on the $500 just made the cash down to be $3,500.00 instead.

[CaliberSRT4]

Welshy wrote

When we bought ours this is how i was done:

Price of car - $20,350
Sales taxes - $1,780.63 (CA tax @ 8.75%)
I'm leaving out the other cost bits such as add-ons and doc fees/registration etc...for this example
Total - $22,131.63 and then minus our $3,000 cash deposit and the $500 deposit. They didn't tax us on the $500 just made the cash down to be $3,500.00 instead.

If they deducted the $500 from the total after taxes, then yes the $500 was taxed.

[Welshy]

.....and that's why I don't look after the check book !!!! LOL !!!