Dealers Buying Personally

if i own stock in MCD can i walk in the local MCDs and state i own the place ?

 

Sorry, but I think you lost me here.

Are you asking whether I, as Rosso’s Fine Cars Inc. would pay sales tax if I bought a new Ferrari from a dealer and registered it to the company? Or whether I as Rosso328 would pay sales tax if I used my dealer license to buy a personal use car?

 

if your ford dealer takes your 85 escort gt in on trade does it pay sales tax ?

 

Don’t you see all the exotics with dealer plates? They don’t register and pay taxes. Hell even the rich guys with supercars in Miami all seem to “live in Montana” and skip the tax man, the only fools who pay taxes are the regular guys like me.

 

yup.
im the moron who registers and pays taxes on all my cars.

 

unlikely a dealer will buy something, even for personal use, and pay taxes on the car.

 

It’s uncanny in Miami how every laferrari,Bugatti,etc all belong to residents of Montana and I know it before getting up close. Bugatti should really open up a dealership in Montana since all those guys live close by.....

 

You can be a car dealer and register a car personally...

 

I can answer your question. I'm a dealer and have bought brand new cars from franchised dealerships. In every case, I've had to pay sales tax.

Three reasons why:

1. I'm not licensed to sell new cars; i.e. I don't have a franchise license. So I can't keep a car on MSO, nor can I title a car on MSO.

2. Even if #1 didn't apply, the vast majority of franchise dealers won't sell new untitled cars to non-franchise dealers anymore. The reason is because, especially with the exotics, the manufacturers want to protect their overseas markets, and they don't want new cars leaving the US and being sold outside of the franchise dealer network. So, they won't do a wholesale deal with a non-franchise dealer, and they won't take a resale certificate for tax exemption.

3. It's the right thing to do. I'm using the car for personal use (i.e. the Honda minivan that we just bought earlier this year for my wife), so I should pay tax on the car.

 

If you were a dealer what incentive would another dealer have to sell you a car at a discount then? Or do you pay "full price" like everyone else? Unless they just want to get rid of the car for whatever reason.

 

exactly, they are driving dealer inventory. the are out for a "test drive"

 

if a rolex dealer wears the inventory does he pay tax ?

 

Well I don't know what state these dealers are in, but in Massachusetts the state makes you pay the sales tax, not the dealer, they have no choice in the matter.

 

I’ll add another fun wrench. Illinois just passed a law that will limit the tax credit on trade-ins to $10,000. So if your car is worth 30k, and you buy a car worth 60k, you’ll pay roughly 3k in taxes today. OTOH come January 1, you’ll pay roughly 5k for the same transaction.

 

They buy all the good cars if you are in
Montreal you can’t buy a few models but
The owners keeps for himself and letter
Sells when someone wants it bad .

Why does Ferrari Italy allow this
Please try to explain to us

 

Ferrari doesn’t have much control over the way a dealership is run. If they did they would start by sending the sales, service and parts departments to a Lexus dealership to learn all about real customer service

 

Sorry, Mr. Kroc, it's $.10, just like everyone else.

sjd

 

If I'm buying a new car, I'm a customer like anyone else. It's a retail deal in every way. I negotiate just like everyone else; my only advantage is that I may be better at it, since I buy and sell cars for a living now.

 

Oh, and as to "driving around on dealer plates", I can answer that one as well, at least for Texas.

As the owner of my dealership, I am allowed to use my metal dealer plates on my personal or inventory vehicles for personal use, and my immediate family can do this as well. The vehicles have to be titled in the dealership name, of course. The only thing is that I am limited on the amount of metal plates that I am issued; currently the maximum for a non-franchise dealer like me is 3 plates.

Temporary paper dealership tags are a different story, though. These are only supposed to be used for test drives or transport of a vehicle from one location to another, like from a service facility back to a dealership, for example.

I've read the Texas laws and dealer manual very carefully, and I know the rules and follow them. Not every dealer does, though, especially when it comes to temporary tags.

 

Just to say, this conversation is not really relevant to my market (UK and Europe) but it is very good to see a dealer, speaking from knowledge and experience, willing to contribute to a conversation like this. Kudos to Mr Foertsch.