I think this is a scam.


Old 09-25-06, 07:57 AM
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I think this is a scam.

I am buying a car from my wifes co-worker, it is in great shape. Anyway, I am purchasing it from him for $5000.00 this weekend, and he has found another car to purchase. So here is the scam, the dealer told him to bring the car in, and they would give him the 5000.00 in order to save him the sales tax, and get him into his car earlier. Then they would turn around and sell me the car even up for five thousand plus tax, and everyone is square. I think this is a scam, because I don't know any dealer that would do a good dead just to do it. What about the doc. fee, and the internet talks of a commision they charge, who do they think there fooling, I know I am going to get there and the car is going to be 6 or 7000 dollars, or they will say oh we have someone interested if you can match their price you can have it. Does this sound odd to anyone. My wifes co-worker said he wouldn't do it if I didn't want him too, but what is everyones opinion.
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Old 09-25-06, 08:38 AM
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I read the plan about ten times and can't see the logic; maybe I'm missing something. Like you, I don't see what's in it for the dealer. "Save him the sales tax" translates to "not pay the sales tax" in my book which would be, obviously, illegal. 'Nuff said.
Old 09-26-06, 10:52 AM
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Sounds possibly legit. The car sales rep is maybe thinking that the more enticing the deal is for your friend, the more apt he will be to buy the new car. By trading in a $5K car, it lowers his net taxable price on the newer car and will bring the tax down a little bit (but not that much ...maybe a few hundred bucks depending on how much the new car is). Just to be safe, I would have the dealership draft up in writing the plan before you and your friend take the $5K car in for the trade. Have them write it out and sign it ...that way, you have a legal document in case they decide to add $3K to the price before they sell it to you. And maybe your friend will cover the doc fee and any other anncillary fees that you are hit with since you are saving him the reduced tax by doing it this way.

The best scenario for you is to pay your friend $5K for the car and have him draft up a sales receipt for $2500 or something like that. That way, you get the car for $5K with no fees and you only have to pay tax on $2500. To me, the government makes a killing on the buying and selling of used vehicles. Total BS ...everytime a used vehicle is bought, uncle sam makes tax money on it. If my truck had 5 previous owners, he made tax money on it each time is was sold ...to me, that is F'ing rediculous but then again, we have the most stacked military in the world
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