Quote:
Originally Posted by TT3 iN NyC
Thanks. But are the tax savings on top of whatever discounts you already get plus the rebates? For example...
MSRP 55k
Negotiated price - 50k
Rebates - 5k
Tax Credit - 3k
Price after all said and done - 42k
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No the "rebate" is essentially the tax credit that the dealer received and are passing on to you in the form of a rebate (but you pay taxes on the initial cost). In your example it would be:
MSRP 55k
Negotiated price - 50k
Pretax loyalty incentive/rebate - $2k
Taxable price - $48K
State rebate - $3k
Price - $45k (but you paid tax on $48k)