What to do? Am I unerstanding this correctly ?

We are starting to go through the process again, same dealer, and a new one 6 hours away. New dealer is offering a great deal on 2012 30% off MSRP! But there is a catch! It's in Texas and they don't charge sales tax. We would have to pay the sales tax when we tagged it here in Kansas. Am I understanding this correctly? That's a big chunk of money to come up with all at once. Tax and tags. Is there a way to have this included in financing ? The old dealer is giving 20% off MSRP and it's a 2011. and taxes would be included in finance charge.
What to do ?

JakeWandaWhite said:

We are starting to go through the process again, same dealer, and a new one 6 hours away. New dealer is offering a great deal on 2012 30% off MSRP! But there is a catch! It's in Texas and they don't charge sales tax. We would have to pay the sales tax when we tagged it here in Kansas. Am I understanding this correctly? That's a big chunk of money to come up with all at once. Tax and tags. Is there a way to have this included in financing ? The old dealer is giving 20% off MSRP and it's a 2011. and taxes would be included in finance charge.
What to do ?

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Can you get it financed by someone in Kansas and have the taxes and registration fees rolled into the loan? Shop around banks and credit unions and you may find an interest rate that's comparable to what the Texas dealer is offering. Does Kansas have a one-time permanent trailer registration/tags (we do in Michigan), or do you have to get new tags every year?

We have to get new tags every year,

Sounds like either way you are paying the sales tax so if you don't want to pay it out of pocket finance the difference and have the dealer/ finance company cut you a check back. Here is an example: say the MSRP is $10,000 and they are willing to sell it for $7,000 (30% off) your dealer can show a 20% down payment making your loan amount $8,000 leaving a $1,000 surplus that can come back to you for taxes.

Does the old dealer collect the taxes? If not it seems to me this is what they are doing.

The old dealer is including the taxes in the finance charge, he's here in Kansas. The new dealer, in Texas said they use to add taxes back in and cut a check back, but they won't let them do that any more. We are talking about a $3,000 difference and a year newer. We would really like to make this deal work,

codycarver said:

Sounds like either way you are paying the sales tax so if you don't want to pay it out of pocket finance the difference and have the dealer/ finance company cut you a check back. Here is an example: say the MSRP is $10,000 and they are willing to sell it for $7,000 (30% off) your dealer can show a 20% down payment making your loan amount $8,000 leaving a $1,000 surplus that can come back to you for taxes.

Does the old dealer collect the taxes? If not it seems to me this is what they are doing.

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It may at a higher interest rate, cash advance on a credit card to pay sales tax.

JakeWandaWhite said:

We are starting to go through the process again, same dealer, and a new one 6 hours away. New dealer is offering a great deal on 2012 30% off MSRP! But there is a catch! It's in Texas and they don't charge sales tax. We would have to pay the sales tax when we tagged it here in Kansas. Am I understanding this correctly? That's a big chunk of money to come up with all at once. Tax and tags. Is there a way to have this included in financing ? The old dealer is giving 20% off MSRP and it's a 2011. and taxes would be included in finance charge.
What to do ?

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We bought in Indiana, live in Texas. Had the dealer roll the Texas sales tax into the purchase. Dealer cut us a check and when we got home and registered it, everything was paid for!

Brett

20% off a 2011 doesn't sound like a very good deal. If your willing to buy out of state I think you can find someone that will work with you.

Ask for at least 35%-40% off Heartlands MSRP (not dealers MSRP). Pay for your sales tax when you register it (use a Visa to so you get free air miles or money back). OR stay within your means, wait a few months/years to save up a few more dollors.

I would think that either dealer could include your state sales tax into the financing package. A dealer in Ohio did this for us here in WA. There are lots of good deals out there. Find the one that fits your needs.

Best Wishes!

Many states have reciprocity agreements to collect and file your home state sales tax when you buy a vehicle out of state. We bought in Indiana and registered in Texas. There was no reciprocity agreement between Texas and Indiana, so we registered and paid when we got home. I'd suggest calling your home state tax office/vehicle registration to find out whether they have a reciprocity agreement (regardless of what the sales person told you). Also check to see if there's a time limit. Texas assesses a significant fine if you're late registering. We took 19 days to get home and registered on the 21st day. One day later and we would have paid several hundred dollars for being late. That would have been an ugly surprise.

Also, not sure what rig you're shopping, but on the high-end rigs, 20 or 30% is not the best you can do on discounts. Suggest you get prices from http://www.rvcapitalwholesalers.com/ or http://www.rvsforless.net/
At a minimum, you'll find out how competitive a price you're getting quoted.

Check with the Texas DMV folks because I seem to remember buying and registering a new car in VA, paying the tax there, and then reregistered in TX a couple of months later (to avoid the VA personal property tax) and they only charged me the difference between the VA and TX sales tax. That was a long time ago, but it is probably worth checking out.