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is this a scam? - Click HERE for Original Thread
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1badsterling
Well, I pulled the trigger and traded in my 06 MDX for a brand new 08 SG w/ tech package. All I can say is wow! Loving every minute behind the wheel. That is of course if the wife lets me have the keys.

Here is my problem, I received a call from the dealership today saying that they have to re-do the paperwork on our lease contract (this is a week later after signing all the paperwork). It turns out that the the sales tax they had charged me for was in their county's sales tax which is at 8.25% when they should have charged me for my county's sales tax which is at 8.75%.

The sales manager told me not to worry since everything will be the same (monthly payments). The only items they will change are:

1. The county tax so that they can charge me the correct taxes and the bank will not deny their paperwork (the bank they are referring to is American Honda finance).

2. They will be changing the selling price of the vehicle (dropping it) so that my payments won't change.

Is this legit? Do I have to re-do my contract or are they trying to pull a fast one on me?
ductman
quote:
Originally posted by 1badsterling
Well, I pulled the trigger and traded in my 06 MDX for a brand new 08 SG w/ tech package. All I can say is wow! Loving every minute behind the wheel. That is of course if the wife lets me have the keys.

Here is my problem, I received a call from the dealership today saying that they have to re-do the paperwork on our lease contract (this is a week later after signing all the paperwork). It turns out that the the sales tax they had charged me for was in their county's sales tax which is at 8.25% when they should have charged me for my county's sales tax which is at 8.75%.

The sales manager told me not to worry since everything will be the same (monthly payments). The only items they will change are:

1. The county tax so that they can charge me the correct taxes and the bank will not deny their paperwork (the bank they are referring to is American Honda finance).

2. They will be changing the selling price of the vehicle (dropping it) so that my payments won't change.

Is this legit? Do I have to re-do my contract or are they trying to pull a fast one on me?

I would tell them to go "scratch", the dealership miscalculated my sales tax and had to eat approx 1400 dollars, this is just an opportunity for them to try to screw you, also ask yourself this question: if you found a mistake in the contract, WOULD they redo it?
JL_SS
Most likely just a mistake on the dealerships part. But, as long as the payment/length stays the same, it's a perfect opportunity to ask for a free accessory for the extra effort required on your part to help them correct THEIR mistake.
LionSpeed
quote:
Originally posted by JL_SS
Most likely just a mistake on the dealerships part. But, as long as the payment/length stays the same, it's a perfect opportunity to ask for a free accessory for the extra effort required on your part to help them correct THEIR mistake.



^ what he said. Call first & confirm "FREE GOODIES" before you come. Tell them time is money, and you ain't gonna make a trip for NOTHING.
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1badsterling
my sales person told me (btw, she has been the nicest and most professional sales person that I have met) that they can't submit the contract or paperwork to the bank unless they have the contract corrected.

So, is there any truth in this? Or can they still submit the paperwork to the bank and the dealership just eats up the cost difference in the taxes? Remember, they paid a lower sales tax because they charged me their sales tax which is at 8.25% where mine is 8.75%. So really I'm the one that is ahead right?

Also, if I do get to the dealership, and see the new contract, but don't like it due to some changes in numbers (car, payment, length of lease etc.) can I just walk away and leave without signing anything?
cybulman
Can you quantify what that extra 0.25% is worth?

If it big ask for something worth that much...accessories, oil change services etc...

Cy
yumi
had a friend that had the exact same type of problem (except he was getting a Mazda). they called him and asked him to come in since they miscalculated and he said forget it.

it's like ductman said, if you found a mistake, would they help you out? if you want to do it, make sure you get something in return; if not, I don't think anyone would fault you.
MDXlover
No. It is not a scam.

Your dealer is asking you as a favor to go back to fix THEIR mistake. You can accept to help them out or you can refuse. The deal is sealed when signatures from both parties appeared on contract. And if you refeuse to make a new contract, most likely the sales rep will have to come up for the diffrence.
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MDXlover
No. It is not a scam.

Your dealer is asking you as a favor to go back to fix THEIR mistake. You can accept to help them out or you can refuse. The deal is sealed when signatures from both parties appeared on contract. And if you refeuse to make a new contract, most likely the sales rep will have to come up for the diffrence.
dacbiet
It's a scam to issue a new contract and get more money from you. So-called "mistakes" are always in the dealer's favor.

Give them two choices: 1) keep the contract as-is and they eat the sales tax difference, or 2) they can cancel your contract, refund your fees and they come pick up the car.

I'm sure they would rather absorb the sales tax difference since they can't resell your car as a new vehicle.
laborlitigator
On a $40K deal, that's only about $200. I'd tell them to absorb it.
davemiamiacura
Mistakes in this business happen. sometimes in favor of the dealer and some in favor of the buyer. If you have a mistake on your contract for .25% we are not talking about alot of money when you are calculating a 46000.00 vehicle. The problem may fall on the sales persons hands..
If you really want to and the sales person took care of you resign . if the payment dont change. and you are not losing . you can ask for something for the trouble. maybe throw in a few oil changes , or like some others had said a great deal on an accessory..
It is your call , but only you know how you were treated and you want to respond. bottom line we are not talking about alot of money.
let me know how it turns out....

Dave Miami Acura.
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hipcheck
I have had this happen and have gone in and redone contracts. I do it out of ethics and wanting to maintain a good relationship with my dealer.

I make mistakes and figure others will too. Normally I catch these types of things when I review the contracts (I've bought over 30 new cars)
HwyRogue
..the dealer is eating the difference - as one of the posts said, the dealer said they would indicate a lower sales price to reflect the tax and payments won't change.

I'd do it - the manager whom I bought form is a decent guy (yes, I was taken in terms of trade-in value for my Pilot, but I expected it) and was accommodating so I'd return the favor.

So, instead of trying to 'stick it' to the dealer who made an honest mistake, do the right thing. If you have to go the dealer and it is out of your way, you could ask for something in return (better price on sidesteps, etc) but if you're close by and it's not a big inconvenience, just be a nice guy.
HuMan321
If it happened to me I would not want this mistake to cost me anything. From what you stated, it won't. I would help them out.
cybulman
How about a COMPROMISE???

You help them out and they give you $200 worth of accessories or oils changes/service in future.

BE VERY CAREFUL TO READ THE NEW CONTRACT FINE TYPE / LINES...before you sign.

Cy
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barnowl
I don't see this as a big deal, and I would do the right thing.

It's not going to cost you anything, as they're adjusting the sale price to reflect a higher tax, which they have to pay.

So, in essence, they are getting approximately $200 less for the car than originally contracted.

They are eating the $200.

I would not add insult to injury by asking for freebies.
adr5
quote:
Originally posted by 1badsterling
Well, I pulled the trigger and traded in my 06 MDX for a brand new 08 SG w/ tech package. All I can say is wow! Loving every minute behind the wheel. That is of course if the wife lets me have the keys.

Here is my problem, I received a call from the dealership today saying that they have to re-do the paperwork on our lease contract (this is a week later after signing all the paperwork). It turns out that the the sales tax they had charged me for was in their county's sales tax which is at 8.25% when they should have charged me for my county's sales tax which is at 8.75%.

The sales manager told me not to worry since everything will be the same (monthly payments). The only items they will change are:

1. The county tax so that they can charge me the correct taxes and the bank will not deny their paperwork (the bank they are referring to is American Honda finance).

2. They will be changing the selling price of the vehicle (dropping it) so that my payments won't change.

Is this legit? Do I have to re-do my contract or are they trying to pull a fast one on me?



It sounds like an honest mistake, not a scam. You should call them and tell them your time is valuable, so you don't want it wasted. Ask them to draw up all the paperwork in advance and have them fax you a copy to review it. Once you get it, go over it carefully and make sure they did exactly what they said they would, which is that they would absorb the cost difference and you would not end up paying anything extra. When you go in do a quick review of the paperwork and then you should be on your way quickly. If the dealer is out of your way, I would ask for a perk like a free oil change.
kingmdx
^ I think the reason people are saying get something free is that if the shoe was on the other foot they would not do over the paperwork.

I agree that you should help them out and do over the paperwork BUT make sure you get paid for your time+gas+inconvenience...that's the bottom line.

P.S. RECHECK ALL VALUES WHEN THE PAPERWORK IS REDONE LIKE IF YOU WERE PURCHASING FOR THE FIRST TIME !!! ...some stealerships are sneaky :p
deanking
Not a scam. Check the numbers before you sign. Use the golden rule or it's reverse (do unto others as they have done unto you). Don't try and stick them for something to do the right thing if they have been right by you. Think of your Karma.

I don't even understand the comment of "would they fix it if the mistake was in your favor?". The mistake is certainly not in their favor: more paperwork for less profit. I think it is an audit and tax compliance issue.

One last thing to consider: it's a new contract. If you don't like something, you have another 3 days to get out of it.
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danilo
Its a common practice, They try to get you back for more money, or add time or something.
Specially by the end of the month.
Be carefull.
RECHECK ALL VALUES WHEN THE PAPERWORK IS REDONE LIKE IF YOU WERE PURCHASING FOR THE FIRST TIME
Specially if they make you hang around there for a few hours.

Let us know the putcome :)
lester123
When I purchased my MDX Nov 29, I signed all the paperwork to do a finance from Honda (at 2.9%) and am yet to hear anything from them. The first payment is due Jan 10.

I just was reviewing the sales invoice, and notice an error in the sales tax calculation. It is computer generated, but nonetheless, it is incorrect and in my favor for about $100. The printout show the 6% state tax and .5% county tax properly, but the tax $ amount is too low. How could they have such an error?
TulsaMDX
Do the right thing and go by the dealership and sign the new contract. Don't ask for anything free, it was an honest mistake.

My dealer made a mistake on a contract that was in his favor and I got a $500 check in the mail which was the amount of the mistake.
adr5
quote:
Originally posted by TulsaMDX
Do the right thing and go by the dealership and sign the new contract. Don't ask for anything free, it was an honest mistake.



Assuming the dealer doesn't waste your time, I would agree with this. Mistakes happen, not a big deal. The dealer is absorbing the cost, so there is nothing wrong with helping them correct it. But, if you get to the dealer and they don't have all the paperwork ready and you have to sit around waiting, then they should offer you something for your wasted time. Especially if the dealer is far from your home.
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G. COLTON
quote:
Originally posted by yumi
had a friend that had the exact same type of problem (except he was getting a Mazda). they called him and asked him to come in since they miscalculated and he said forget it.

it's like ductman said, if you found a mistake, would they help you out? if you want to do it, make sure you get something in return; if not, I don't think anyone would fault you.



I just love the thinking of some people; screw them unless I get something out of it.

Personally, I believe that we should all try to be good neighbors as much as we can. I would believe that this dealer would treat you the same if an error in their favor had been found. I think that most dealers/people would react this was. I will start with this attitude with any transaction until I have been proven wrong.

This dealer has told you that they will address the problem by changing the dollar amounts so that you will lose nothing. I think that you should give them the same consideration that you would expect them to give you.

G
1badsterling
I finally talked to my salesperson. She said that she will fed ex the docs to me and put a return envelope in there for me to send them back instead of me driving back to the dealership.

I read the new contract, everything looked good to go. The only major thing that changed was that she dropped the selling price of the vehicle to about $200 to offset the price for my higher sales tax. So my payments and terms did not change.

She even offered a free detail, but I turned it down. I rather detail my own vehicle anyway. But the offer was nice. Eitherway, I would have re-signed the contracts whether or not there was something given to me from them. :)
rburnett
quote:
Originally posted by 1badsterling
I finally talked to my salesperson. She said that she will fed ex the docs to me and put a return envelope in there for me to send them back instead of me driving back to the dealership.

I read the new contract, everything looked good to go. The only major thing that changed was that she dropped the selling price of the vehicle to about $200 to offset the price for my higher sales tax. So my payments and terms did not change.

She even offered a free detail, but I turned it down. I rather detail my own vehicle anyway. But the offer was nice. Eitherway, I would have re-signed the contracts whether or not there was something given to me from them. :)



I believe you made the right decision. Not every salesperson is a snake and establishing relationships with dealers can be valuable down the road. Treat people how you want to be treated until they give you reason to let loose the dogs of war!

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