Tips on Buying Cars: Tax on Rebates and Dealer Cash, mark downs, sticker price


Question
Jermey, I bought a vehicle in the state of ny with a sticker price of 20,000  The sale price was negotiated to 15,000 with all rebates going to the dealer.  I was taxed on the full sticker price of 20 thousand.  - I do not know if these were considered mark downs, rebates, or dealership money.. Bottom line.. was I supposed to pay the tax on the additional 5k.. Thanks

Answer
Brian,

Thanks for your question.  In the state of New York, you pay taxes on the sales price of the vehicle before any rebates, and before any down payment.  In some states you pay taxes on the price of the vehicle minus any rebates, but in New York, you pay taxes on the actual sales price of the vehicle.

Thanks for your question again.

JB