[ConeFusion]

How the tax is handled depends on your state. In some states you can get the tax refunded if you sell the car. Or you might not have to pay it if you never register the car.

For the deposit, you'll have to look at your contract. My contract states that the deposit is refundable.

 

[babak]

RE: Deposit

It depends on where you live (or are wait listed.) In some states there is no such thing as a non-refundable deposit.

 

[smura]

He's probably right about the sales tax, but there is a way around it.

You have to set up an LLC in the state you live in. For purposes of selling the car, you can do this without an attorney. You have to pay $100 or so for a filing fee with the state.

Then, you buy the car under your new company name, and issue to the dealer a resale certificate. This resale certificate allows you to purchase the car tax free, for resale. Then when you sell the car, you are required to collect the sales tax from the buyer and file a sales tax return with the state to turn the money over to them. However, if you sell the car to a person who lives outside your state, you don't need to collect the tax.

This may be worth the effort to you if you believe you can sell the car above your purchase price. It's a bit of paperwork, but it shouldn't take you more than a couple of hours to fill it out and make it legit.

 

[Randy Chase]

It may depend on the state.

I *think* in California, you have to be registered as an automobile reseller in order to waive the sales tax. I think.

 

[ChrisB]

told him i cannot buy the elise i put a deposit down on in March at this time. asked him about still purchasing the vehicle and selling it on my own. he told me it is not worth it because of the sales tax.. he said he will be able to still sell the car and not to worry about it... i asked him about the return of my $1000.00 deposit and gave me a quick don't worry about it we will keep in touch type of answer. is he accurate about sales tax issue and should i buy it anyway and resell it on my own? can he keep my deposit legally...

Do you live in a different state than the dealer? If so, you may be able to purchase the car and have it shipped out of state without paying any sales tax. Normally, then, you would pay the sales tax in your state when you register the car. If you don't register it (and don't drive it), you should then be able to sell it and the buyer would pay the sales tax in whatever state he/she registers it in. You really need to do some research on the paperwork requirements of both states.

You may also get another dealer to buy it from you at a nominal amount over MSRP.

Given these scenarios, you also may be able to get your dealer to refund your deposit and pay you a nominal additional amount so he can keep it and sell it at well over MSRP.

In any case, given all this, if what you want is to just get out of the deal, the dealer is more than likely to refund your deposit regardless of what your contract, if any, says when he understands you may take one of these other alternative steps.