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Dealers Buying Personally

Discussion in 'Ferrari Discussion (not model specific)' started by carz80am, Aug 2, 2019.

  1. carz80am

    carz80am Formula Junior

    Sep 23, 2015
    501
    Northern Virginia/DC
    So, I'm sure there are a few dealers out there that buy new ferrari's for themselves(or resale), do you pay sales tax? I'v heard different responses, but normally don't pay sales tax on new car purchases but some Ferrari dealers make them pay it, which makes no sense...
     
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  3. henryr

    henryr F1 World Champ
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    Nov 10, 2003
    18,223
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    Juan Sánchez Villa-L
    if i own stock in MCD can i walk in the local MCDs and state i own the place ?
     
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  4. Rosso328

    Rosso328 F1 Veteran
    Rossa Subscribed Owner

    Dec 11, 2006
    6,054
    Central FL
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    Paul
    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?
     
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  5. carz80am

    carz80am Formula Junior

    Sep 23, 2015
    501
    Northern Virginia/DC
    Buying under your company name for yourself
     
  6. carz80am

    carz80am Formula Junior

    Sep 23, 2015
    501
    Northern Virginia/DC
    Very helpful, asset to the community
     
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  8. henryr

    henryr F1 World Champ
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    Nov 10, 2003
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    Juan Sánchez Villa-L
    if your ford dealer takes your 85 escort gt in on trade does it pay sales tax ?
     
  9. F355 Fan 82

    F355 Fan 82 F1 Veteran
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    Jul 22, 2006
    9,035
    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.
     
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  10. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    15,364
    yup.
    im the moron who registers and pays taxes on all my cars.
     
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  11. ttforcefed

    ttforcefed F1 World Champ
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    Aug 22, 2002
    15,364
    unlikely a dealer will buy something, even for personal use, and pay taxes on the car.
     
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  13. F355 Fan 82

    F355 Fan 82 F1 Veteran
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    Jul 22, 2006
    9,035
    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.....
     
  14. carz80am

    carz80am Formula Junior

    Sep 23, 2015
    501
    Northern Virginia/DC
    I know those guys aren't paying sales tax. Lately, I've seen a porsche dealership and ferrari dealership make a customer who was also a dealer pay sales tax on a new vehicle purchase, makes no sense to me, that's why I asked.
     
  15. F355 Fan 82

    F355 Fan 82 F1 Veteran
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    Jul 22, 2006
    9,035
    You can be a car dealer and register a car personally...
     
  16. M. Brandon Motorcars

    Sponsor

    Sep 4, 2007
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    #13 M. Brandon Motorcars, Aug 3, 2019
    Last edited: Aug 6, 2019
    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.
     
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  17. Rosso Corsa Strada

    Nov 11, 2018
    58
    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.
     
  18. henryr

    henryr F1 World Champ
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    exactly, they are driving dealer inventory. the are out for a "test drive"
     
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  19. henryr

    henryr F1 World Champ
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    Nov 10, 2003
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    if a rolex dealer wears the inventory does he pay tax ?
     
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  20. Nospinzone

    Nospinzone F1 Veteran

    Jul 1, 2013
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    Paul
    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.
     
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  21. JP365

    JP365 Formula 3

    Mar 8, 2007
    1,064
    Chicago
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    John Fanning
    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.
     
  22. carz80am

    carz80am Formula Junior

    Sep 23, 2015
    501
    Northern Virginia/DC
    Thanks, this is very helpful. I guess some dealers follow and some don't.
     
  23. Sal polletta

    Sal polletta Rookie

    Jul 17, 2018
    12
    Full Name:
    Sal polletta
    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
     
  24. Graz

    Graz Formula 3
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    Oct 15, 2012
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    Thomas

    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 ;)
     
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  25. steved033

    steved033 F1 Rookie
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    Apr 12, 2017
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    Sorry, Mr. Kroc, it's $.10, just like everyone else.

    sjd
     
  26. M. Brandon Motorcars

    Sponsor

    Sep 4, 2007
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    Michael Foertsch
    #23 M. Brandon Motorcars, Aug 6, 2019
    Last edited: Aug 6, 2019
    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.
     
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  27. M. Brandon Motorcars

    Sponsor

    Sep 4, 2007
    1,470
    Houston, TX
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    Michael Foertsch
    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.
     
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  28. Themaven

    Themaven F1 Rookie
    Rossa Subscribed

    Nov 2, 2014
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    London
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    Darius
    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.
     
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