Tax On US Purchased CX-5s?

[Pitter]

When you buy a CX-5 in the US are all taxes included in the quotation and subsequent sales contract? I know a lot of price negotiation is standard procedure there. Here in Colombia there is essentially no negotiation, The price is the price. This dealer or that might toss in a tiny extra to encourage you to chose them over the others but the vehicle price is the same. Trade in price is also standardized. When purchased my new Signature I was given a written quote with two numbers. One was the cost of the car complete with all taxes and the second was the cost of registration and obligatory government insurance. I paid for the car in cash exactly at the figures on the quote and there were no offers or suggestions of dealer add ons of any kind.

 

[ZoomZoomForever]

It varies by the state you reside in here. Mine were $300 (now been raised to a $500 max sales tax), but some states are percentages that equal several thousands.

 

[murky]

When you buy a CX-5 in the US are all taxes included in the quotation and subsequent sales contract? I know a lot of price negotiation is standard procedure there. Here in Colombia there is essentially no negotiation, The price is the price. This dealer or that might toss in a tiny extra to encourage you to chose them over the others but the vehicle price is the same. Trade in price is also standardized. When purchased my new Signature I was given a written quote with two numbers. One was the cost of the car complete with all taxes and the second was the cost of registration and obligatory government insurance. I paid for the car in cash exactly at the figures on the quote and there were no offers or suggestions of dealer add ons of any kind.

That sounds great. They try to offer "no haggle pricing" at some dealerships in the US. Of course, it isn't the lowest price you could get. I like paying too much even less than I like haggling.

If the price is truly fixed, that's another matter. Then its simply whether the car is worth it to you or not, takes the gamesmanship out of it.

In my state we have a tax on car purchases that is almost 10%. It is a huge disincentive to change cars. It's also unfair that one gets to deduct the trade-in from the taxed amount, but not if one sells the old car to a 3rd party.

 

[shadonoz]

In my state we have a tax on car purchases that is almost 10%. It is a huge disincentive to change cars. It's also unfair that one gets to deduct the trade-in from the taxed amount, but not if one sells the old car to a 3rd party.

And just south of you, we pay only 0.5% "vehicle privilege tax" on new cars. And that just started in 2018. That's the only state wide sales tax.

But we make up for it on property and income taxes.

 

[murky]

And just south of you, we pay only 0.5% "vehicle privilege tax" on new cars. And that just started in 2018. That's the only state wide sales tax.

But we make up for it on property and income taxes.

I'm not saying I would want to trade tax situations, but I might more seriously consider upgrading to a newer car if it weren't taxed. It's hard to justify burning another $2,000 to $4000 on top of the depreciation losses and all of that.

 

[shadonoz]

I'm not saying I would want to trade tax situations, but I might more seriously consider upgrading to a newer car if it weren't taxed. It's hard to justify burning another $2,000 to $4000 on top of the depreciation losses and all of that.

Good argument to do away with sales taxes.

 

[Chocolate]

Agreed upon value of car 25803
Total with tax, tag, fees 28563.65
In MD you pay full sales tax on leases, it is considered a purchase. I plan on keeping the vehicle, the lease just allows for more flexibility.
Lease payment per month 335 for 15k/year, 3 years,
1st payment covered, 1,000 down
Total payments = 1,000 down + 35 x 335 = 12,725.
Lease buyout option at end of lease is 15,569.25.
12,725 (amount of money down and total payment) + 15,569.25 = 28,294.25 total including taxes and fees.

 

[shadonoz]

Lease payment per month 335 for 15k/year, 3 years,

Love that rent charge! You scored on that one. You're basically financing it for 3 years for free.

 

[Chocolate]

Love that rent charge! You scored on that one. You're basically financing it for 3 years for free.

Yeah, it's better than the 0.9% APR and they chipped in $335.
I negotiated with multiple dealers and towards the end of the month. Someone will want to make their quota. The first quote I got was 345 with more money down.
The options on the vehicle are the i-activsense package (625) and factory hitch (450).

 

[MyFirstMazda]

In NJ they charge us a sales tax of 6.625% and also a tire tax. I wish I could get 6% interest on a bank's savings account. No matter what the Fed interest rate is or how the economy is doing, the State gets their fixed rate sales tax.

 

[Avoidin Deer]

Virginia charges 4.0% tax on the purchase of a new car.
Virginia also charges a "Property Tax" every year on the current value of the car. Some states do this as well, others do not.

Regarding all dealers charging the same: "No haggle" is a good idea, as long as you're not getting ripped off. I'll sell you my Reserve for $50,000 without haggling

 

[Puyapim]

Ive been in countries where the MSRP is the price and that is that. No dealing at all.

In WA State I paid close to 10% sales tax on the cx5. It is an ouch moment.

 

[Pitter]

In Colombia we also pay an annual property tax on vehicles.

 

[Avoidin Deer]

In Colombia we also pay an annual property tax on vehicles.

My mother was British...a WW2 bride. She had lots of British friends here who also immigrated to America. One of them was a cockney lady from the slums of London who had a very sharp wit.

She would often joke: "You left us because of taxation without representation. Now that you have representation, how do you like it?"

I guess there is no safe harbor.

 

[Zig613]

I*ve been in countries where the MSRP is the price and that is that. No dealing at all.

In WA State I paid close to 10% sales tax on the cx5. It is an ouch moment.

I will raise you 3%. In Ontario (Canada) we pay 13% sales tax on vehicles plus a tire tax and air conditioner tax.

Wade

 

[IamVAguy]

I will raise you 3%. In Ontario (Canada) we pay 13% sales tax �� on vehicles plus a tire tax and air conditioner tax.

Wade

Good grief! Is the 13% the VAT or is there a different rate for cars? So that's why all those Canadians shop at the Costco in Bellingham, WA. Isn't there some kind of duty charged when reentering Canada with U.S. goods?

Now I can understand how the Millennials are into ride-sharing. Keeping a car is really expensive...lowest cost to own (fuel, maintenance, loan interest, insurance, and depreciation) is on the order of $0.50/mile for an economy car.

 

[Zig613]

Good grief! Is the 13% the VAT or is there a different rate for cars? So that's why all those Canadians shop at the Costco in Bellingham, WA. Isn't there some kind of duty charged when reentering Canada with U.S. goods?

Now I can understand how the Millennials are into ride-sharing. Keeping a car is really expensive...lowest cost to own (fuel, maintenance, loan interest, insurance, and depreciation) is on the order of $0.50/mile for an economy car.

The 13% is the sale tax in our province (5% Federal and 8% Provincial). There are some exceptions (e.g. food, purchase of a house, etc.) however, it does apply to most purchases. I won't get into a discussion of whether or not the benefits we receive from the various levels of government for the amount of taxes they collect from us. That is another story. A lot of Canadians likely have slowed their shopping in the US (I know I have) due to the low Canadian dollar ($1.00 usd = about $1.32 cdn). Yes, there is generally duty applied to the products purchased in the US and brought back to Canada.

Wade

 

[Avoidin Deer]

The 13% is the sale tax in our province (5% Federal and 8% Provincial). There are some exceptions (e.g. food, purchase of a house, etc.) however, it does apply to most purchases. I won't get into a discussion of whether or not the benefits we receive from the various levels of government for the amount of taxes they collect from us. That is another story. A lot of Canadians likely have slowed their shopping in the US (I know I have) due to the low Canadian dollar ($1.00 usd = about $1.32 cdn). Yes, there is generally duty applied to the products purchased in the US and brought back to Canada.

Wade

My mother was British. Her family would occasionaly visit the states.
They would travel light coming over, buy luggage here, stuff it with goods bought in the states, and cart it all back home.

For them, it was selection as much (or more) than it was price.