GMAC Lease Issue

[tozion]

Hi Marv!

 

I have a question. A friend of mine just told me that they leased a car through GMAC and signed the contract and gave the COD and drove off with the car two weeks ago. This morning the dealer calls them and says that GM now wants the excise tax included in their payment and that they can't pay it themselves. So, they must return to the dealer and sign a new contract with excise tax now included. Is this normal? What should he/she do or beware of now if anything?

 

Just want to calm their neves!

[hoapres]

Maybe you can say NO and simply return the car back. I am not sure why it matters how the excise tax is paid.

[tozion]

Maybe you can say NO and simply return the car back. I am not sure why it matters how the excise tax is paid.

 

I don't think they can take the car back without not having a car. They traded a car in to get this new lease!

 

:: BUMP :: for Marv

[tozion]

Maybe you can say NO and simply return the car back. I am not sure why it matters how the excise tax is paid.

 

One other thing. I have a GMAC lease right now (for a SAAB) and I pay the excise myself... why would it be different for them? This has me really confused as well.

[hoapres]

Maybe you can say NO and simply return the car back. I am not sure why it matters how the excise tax is paid.

 

I don't think they can take the car back without not having a car. They traded a car in to get this new lease!

 

:: BUMP :: for Marv

 

Demand the tradein back.

[Anubis]

Tell them to call GMAC directly. I'm guessing this is in MA? I've had two leases through GMAC, one included excise, one didn't. I was asked by F&I both times how I wanted to do it, and was never told that it was a requirement either way.

[MarvBear]

I am familiar with leases in the state of North Carolina, Georgia, and Florida.

 

North Carolina requires a use tax in addition to the sales tax and both of those are added to the base payment

Georgia requires a sales tax which is added to the base payment.

Florida requires a sales tax which is added to the base payment.

 

Each state may have different laws regarding how sales tax is computed and collected on a lease. In the states I am familiar with the lender collects the sales tax on top of the monthy payment which would be indicated on the contract and then remits to the appropriate state agency.

 

If sales tax is what you are referring to, then they would need to go back and sign another contract giving the State their due recompense.

 

Or if your friend doesn't want to, they can just go back and make a fuss because somebody made a mistake, and sit there and fume and not sign and just wait till your old car comes back, if indeed it is sold. If that's the case, likely to be a fair wait.

[tozion]

Tell them to call GMAC directly. I'm guessing this is in MA? I've had two leases through GMAC, one included excise, one didn't. I was asked by F&I both times how I wanted to do it, and was never told that it was a requirement either way.

 

 

The sale was done at a dealer in MASS, but my friend resides in Rhode Island. The SALES TAX is INCLUDED in their payment on the contract, but EXCISE is NOT and that is how they agreed on the deal as it was assumed to be paid directly to the local government. I think they're going to contact GMAC and then their lawyer as they have free legal service through their job.

[tozion]

Or if your friend doesn't want to, they can just go back and make a fuss because somebody made a mistake, and sit there and fume and not sign and just wait till your old car comes back, if indeed it is sold. If that's the case, likely to be a fair wait.

 

 

Sales tax is INCLUDED on the GMAC Smart Lease contract that they already signed.

[MarvBear]

It would be doubtful a dealer in another state would know how taxes whether sales or excise, are treated on lease contracts in other states. I certainly am not.

 

For those obvious reasons, and for dealing with irate customers who live in another state, I forego doing lease contract in any state except for residents of the state of Florida where my employer is located.

[mk_378]

If he says no and the dealer wants the new car back, then they have to give him his money back as well as his old car or it's trade value as specified on the contract. The dealer may decide to pay the tax instead and eat the cost to keep the deal alive.

 

Really if they made a bona fide error they should offer him some compensation for coming back and signing a new contract. And I doubt they'll be doing any out of state leases any more.

[tozion]

If he says no and the dealer wants the new car back, then they have to give him his money back as well as his old car or it's trade value as specified on the contract. The dealer may decide to pay the tax instead and eat the cost to keep the deal alive.

 

Really if they made a bona fide error they should offer him some compensation for coming back and signing a new contract. And I doubt they'll be doing any out of state leases any more.

 

 

They offered the couple a free tank of gas "for their trouble."

[Anubis]

It would be doubtful a dealer in another state would know how taxes whether sales or excise, are treated on lease contracts in other states. I certainly am not.

 

For those obvious reasons, and for dealing with irate customers who live in another state, I forego doing lease contract in any state except for residents of the state of Florida where my employer is located.

Because of the close proximity of New England states, most dealers are familiar with the tax/title/reg/insurance requirements of the adjoining states. People who rush to NH to buy a car in a no-sales-tax state are usually saddened to find that they still have to pay MA sales tax. Of course all the shady dealers are in NH since there is not a used car lemon law like there is in MA and RI. Excise tax up here is a use tax. Interestingly it's based on the depreciated value of the original MSRP of the car, and you regularly see people have to pay $1000 annually in excise tax on a $500 car.

[LBCS]

Wow, that sucks. How much is the tax for a new car?

 

Interestingly it's based on the depreciated value of the original MSRP of the car, and you regularly see people have to pay $1000 annually in excise tax on a $500 car.

[tozion]

UPDATE:

 

They couple now tells me that they called the dealer after not hearing from them. Their trade was already SOLD... the business manager is supposedly talking to the owner and will get back to them today.