markulele

when deciding how much you are willing to pay for your toy?

the most basic IS one with automatic trans, cost

$31750 +$`1290= 33040

after destination charge: 33630

with (8.25% + $400) tax -> 36804

so reading other threads, some of you paid 35K, 40k, 43K out the door?
is really out the door, or before tax?

or when saying "out the door" it implies before tax, because tax is given, everybody
have to pay.

san diego sales tax is 7.75%, you might save around $200, but you might spend
$200 on gas and food driving from san diego to SF

rominl

iTrader: (4)

at least to me, out of the door means the price you got the car (with tax and fees) so you can drive the car off the lot. to me, with 1 cents less in tax, you can't drive the car off anyway

and in cali, usually i just tell people to get the price of the car + 10% as the total price

PhilipMSPT

iTrader: (5)

You can claim your car as a tax deductible if you use it for work (real estate agent, home health care, pizza delivery guy that owns an IS350). I think you can also claim part of the tax as a deduction if your work is more than 15 miles away from your residence. Check with your tax preparer and perhaps they can help you with this.

Other than that, tax can get pretty hefty especially for something around $35k, in which the tax is about $3k. If you finance the $3k in taxes, it's about $60 a month added to the price of the car for a 5 year loan. Not too bad considering you'll probably pay about $80-120 a month on gas alone.

Maximus350

Tax rate is based on where you live, not where you buy the car. Thus, since I live in a 7.25%sales tax bracket in Monterey County, I could buy the car anywhere in CA and will be charged the same rate.

rominl

iTrader: (4)

if it's for work yes i believe you can basically put the car as work and write off something. however, i thought the car has to be over 6000lb? could be wrong though

and nop, i really don't think you can write off anything just coz' you live this and that far away from work. to me it doesn't make much sense.

and everything comes in a price i guess. just imagine the tax number i saw when i got my sc430 i almost fell from my chair!

kensteele

Maybe you shouldn't be quoting the taxes in your final number when you report how much you got the car for. Taxes are totally different for everyone. Not only are the rates different, but if you trade-in another car at the dealership, you can lower you base and save on taxes. I live in Kansas and if I purchase a vehicle in Missouri (two local dealerships are in MO), I don't pay sales tax and I drive the car out of the lot without paying for sales tax. I pay the sales tax 30 days later when I go to the Kansas-DOT office for license plates or when I register my new car, I bring my bill of sale.

It's still money you have to pay one way or the other but I wouldn't consider that in what type of deal you got, how good or how bad it was. So for my numbers, that won't include TTL.

markulele

hey...those people who are independents or contractors can deduct pretty much everything,
is that right? I am sure many of them do a lot of tricks...
now, I know....no wonder everytime I saw a real estate agent, they always drive a nice car.

can they really deduct everything? the whole cost and gasoline, maintenance?
including those agents that drive benz S500?

so if an agent buy a ferrari modena, can he/she also deduct it?

dajanik

I think you double counted the destination charge of $590.

$31,160 + $590 = $31,750
$31,750 + $1,290 = $33,040.

I just saved you $590

jaydunn

You guys really get raped for the privilege of living in California. Here in Ky. the maximum tax is 5.8% on the difference in the price of the new car and the trade. Funny thing, I consider that getting screwed.

Xanadu350

Is there still a Luxury tax on new cars or did they do away with that?

TimboIS

I think it's actually a gas guzzler tax. Which I think they still have, but I'm sure the IS is well over the MPG minimum.

LeslieRC

For me, "out the door" means whatever I have to pay to drive the car off the dealership's lot. Thus, sales tax is a factor for me when I am calculating what a car "costs". When I am negotiating for a car I am always mindful of the additional $3K or so that is going to be added to the dealer's price. Therefore, my offer is always stated as "all-in", meaning every cost item that translates to my cost for the car. That way, my position is crystal clear and it's up to the salesman to sort-out the line items.

LeslieRC

Tax is a dedicated revenue stream that is used for community improvement. As communities grow, needs (schools, roads, police, fire, etc.) increase. Taxes provide the revenue to provide for those needs. Besides, somebody's got to pay for all those freeways!

Rockville

Most dealers will quote a sales price and then say plus taxes (in your locale), tags (and titling) and fees (processing fees). Some dealers will lump the destination charge as a fee and try to tack it on at the end which can be quite a surprise at say $675! This led to a less confusing approach with the buyers simply asking for the grand total "on the road" or "out the door". There are of course other factors that can supercede price such as convenience in location etc and availability. In our district some dealers charge inflated processing fees and business license taxes. Others give you the destination fee surprise so the "on the road" price is better defined.

Luxury taxes are history, Thank God....Lexus has never had a Gas Guzzler tax since their inception and I doubt ever will. Mercedes doesn't think that it is that important to their owners deep pockets and considers the GG a badge of success I guess.

fz1

I've never leased before, do you pay the same taxes on a lease?