Are these taxes and fees fair?

[Razor488]

I live in Texas but I am picking up a vehicle at the dealership in Lexington Kentucky. They are going to collect Texas registration taxes when I buy the vehicle. MSRP is $85,463.00 and estimated taxes and fees are $92,078.44. I figure Texas taxes at 6.25% = $5,341.43 so that leaves a balance of $1,274.01. I remember on the phone them saying they charge an ~$800 delivery fee and a ~$400 fee to register your vehicle from another state. Not like I have a lot of choice - my current vehicle is having mechanical problems so its a priority to get this car asap. Thanks

I did ask if they could not charge me taxes etc and I would take care of that when I got home, but they said no.

 

[gvan1998]

The MSRP includes the freight delivery fee. If you are picking up the vehicle, I don't know how they are charging you a second delivery fee.

I have purchased many vehicles from out of state, and I was never charged a fee to register them in another state.

It looks like some BS charges.

I would bring up those issues, if they don't remove it, I will threaten to back out of the deal.

 

[KAR120C]

It really depends on the out-of-state registration company they use. Your dealer will be given a breakdown of every line item the registration company charges, including their fees (which may include things you haven't thought of like priority mail of titles, etc).

 

[Bluegill]

Looks like the $800 delivery fee and $400 out-of-state registration are B.S. fees. That's 1200 bucks man!

 

[Razor488]

Looks like the $800 delivery fee and $400 out-of-state registration are B.S. fees. That's 1200 bucks man!

I agree they're BS but I don't have a lot of leverage since these cars are hard to find right now and I need it quickly.

 

[incognito.gx]

Tell them you’ll pay the $400 but not the $800

 

[ColoradoOutdoors]

I agree they're BS but I don't have a lot of leverage since these cars are hard to find right now and I need it quickly.

I wouldn't worry about it. Yes, you are likely paying a bit more but you get the convenience of getting what you want now, for not too much extra. When I was trying to work a deal with Pembroke Pines Lexus, they were adding $1,900 in junk fees (electronic doc, dealer fees, surcharge fee, tag fees) even before taxes. Luckily I was able to stay local. But the extra baked-in fees for these big out of state volume MSRP dealers seems to be a thing.

 

[S SUBERI]

It just depends on how bad you want the truck For some $1200 isn't a big deal If you don't have to wait another 6 months. I have a buddy that bought an LCFE a year ago April and paid the dealer 15K over list and bought a few other goodies that he didn't need just so he could get one before me. I walked away from the deal because I didn't want to pay a 15K premium and he bought it right after I left the dealership. It was funny and I still regret not getting it when I had the chance. Today we both laugh about it and I love my GX. So really its up to you and how bad you want the truck.

 

[ColoradoOutdoors]

It just depends on how bad you want the truck For some $1200 isn't a big deal If you don't have to wait another 6 months. I have a buddy that bought an LCFE a year ago April and paid the dealer 15K over list and bought a few other goodies that he didn't need just so he could get one before me. I walked away from the deal because I didn't want to pay a 15K premium and he bought it right after I left the dealership. It was funny and I still regret not getting it when I had the chance. Today we both laugh about it and I love my GX. So really its up to you and how bad you want the truck.

Thanks for the laugh, this is a great story!

 

[S SUBERI]

Yes, looking back it’s funny. I forgot to add that every time he saw me jogging in the neighborhood he would stop and tell me how much he loved his new truck

 

[tmitchem]

They are actually pretty much standard dealer charges. Delivery fee is pretty much the same across the board and the registration/Doc fees depend on the state. Here in VA I think it was like $800.00 from every dealer. I would be more pissed off at the amount you are paying in Texas taxes.
The other thing to remember is I guarantee you if you don’t take the car the dealer will have another buyer pretty quick.

 

[greenspacemarine]

I did ask if they could not charge me taxes etc and I would take care of that when I got home, but they said no.

Sorry but this is not accurate. I've purchased out of state vehicles a couple of times now and you do not pay them any sales tax or registration. That becomes your responsibility when you get home with the vehicle. (I.E. going to your local tax office with the bill of sale, title, etc and you pay them whatever your states tax rate and reg fees are)

 

[Chrisv]

I live in Texas but I am picking up a vehicle at the dealership in Lexington Kentucky. They are going to collect Texas registration taxes when I buy the vehicle. MSRP is $85,463.00 and estimated taxes and fees are $92,078.44. I figure Texas taxes at 6.25% = $5,341.43 so that leaves a balance of $1,274.01. I remember on the phone them saying they charge an ~$800 delivery fee and a ~$400 fee to register your vehicle from another state. Not like I have a lot of choice - my current vehicle is having mechanical problems so its a priority to get this car asap. Thanks

I did ask if they could not charge me taxes etc and I would take care of that when I got home, but they said no.

I just did the same thing on Saturday. I live in SC but bought a GX via email that was in MD. I picked it up on Sunday. I paid taxes for SC (capp d at $500 but we pay income tax ), an $800 dealer “processing” fee/markup and then $655 fee for title, registration, etc. For good measure, they also charged me a $4 Tire Recycling Fee (go figure). To the dealers credit, the $800 fee is advertised on the website and I must have looked at the listing 25 times, so I was not surprised. I thought the other fees were a little high but the dealer outsources out of state registrations to a third party (Beacon National Auto). Based on what I think I know about the costs to do it myself, it appears to be about 100% markup (~$325) for those services. That’s a small price to pay to avoid DMV! Fairness is subjective - in total, it ends up being about $1000 markup after the registration company pays the actual costs to DMV AND, ignoring the $1350 on the sticker. But, I was driving home in the exact 550 I wanted less than 48 hours after I started looking. My home dealership guessed I’d be on their waiting list for 4-6 months. Nope - life is too short. My advice: just let it go and enjoy the car. If you’re interested in the things the Finance Manager is selling, try y to o make up ground there. You’ll still be paying too much for those things, but you’ll feel better. I got a $1000 rebate (military) but had to finance through Lexus. I paid it off this morning! Good luck and enjoy the car!

 

[tmitchem]

Sorry but this is not accurate. I've purchased out of state vehicles a couple of times now and you do not pay them any sales tax or registration. That becomes your responsibility when you get home with the vehicle. (I.E. going to your local tax office with the bill of sale, title, etc and you pay them whatever your states tax rate and reg fees are)

That depends on your state. I lived in WV for 20 years and purchased several vehicles from PA. I always paid the dealership in PA the sales tax and registration fees for WV and they took care of the paperwork.

 

[Chrisv]

They are actually pretty much standard dealer charges. Delivery fee is pretty much the same across the board and the registration/Doc fees depend on the state. Here in VA I think it was like $800.00 from every dealer. I would be more pissed off at the amount you are paying in Texas taxes.
The other thing to remember is I guarantee you if you don’t take the car the

That depends on your state. I lived in WV for 20 years and purchased several vehicles from PA. I always paid the dealership in PA the sales tax and registration fees for WV and they took care of the paperwork.

Same for me.

 

[Dr Bob]

Here’s the scoop. I bought a GX from NY and had it shipped to CA. The dealership collected taxes and registration and paid them directly to CA. Over $8000 total. They were required to do so. I had to hire a shipping company to transport my car. Cost me another $1500. The dealership collected taxes charged me the MSRP(window sticker price) + about $1200 in additional add ons. I got the car I wanted OT+ nori green pearl. Same car in CA was $15-20 K OVER MSRP. So I think you got a fair deal so just pay it and be happy! When I got the car everything was easy. CA requires any new car from out of state to be smog tested. Then I took the car to DMV so they could verify the VIN and that was it. Oops sorry, I see you’re picking up the car, so there should be NO ADDITIONAL DELIVERY FEE! So the $800 is a bs fee!

 

[greenspacemarine]

I stand corrected then. I'm in Texas but have purchased vehicles from Illinois and Arkansas. Made inquires in Colorado and Arizona and was told by them it would have been the same procedure. With OP being in Texas as well it still sounds like he should not be paying them any tax. Just the vehicle price and their doc fee. Personally I wouldn't pay more than $300-$400 for that as it's literally just the dealers rate for your paperwork.

 

[thegoodheartedGreen]

Tell them you’ll pay the $400 but not the $800

 

[gvan1998]

Sorry but this is not accurate. I've purchased out of state vehicles a couple of times now and you do not pay them any sales tax or registration. That becomes your responsibility when you get home with the vehicle. (I.E. going to your local tax office with the bill of sale, title, etc and you pay them whatever your states tax rate and reg fees are)

I'm sorry, but that's not 100% accurate either. If the dealer decides to do the tag and title via power of attorney, you will need to pay sales tax tand registration to the dealer based on your state.

However, if the dealer opts out and you do your own tags, you have to pay sales tax directly to DMV.

 

[incognito.gx]

i bought my 2019 TypeR in Indiana (just over border from Chicago) and never paid any additional Illinois tax on it.