Capitalized tax

samlane86

I’ve received two quotes on a Chevy Bolt. The second quote lowered the selling price and raised the trade in equity, but it included over $1600 in capitalized tax that was not included on the first quote. I’ve asked the salesman three times via text if he could explain it, but he never does. Can anyone tell me what it is?

kyfdx

samlane86 said:

I’ve received two quotes on a Chevy Bolt. The second quote lowered the selling price and raised the trade in equity, but it included over $1600 in capitalized tax that was not included on the first quote. I’ve asked the salesman three times via text if he could explain it, but he never does. Can anyone tell me what it is?

Tax is tax. Capitalized means the tax was rolled into the CAP cost.

NY collects the tax upfront. You either pay it upfront or capitalize it (roll it into the payments)

samlane86

kyfdx said:

I’ve received two quotes on a Chevy Bolt. The second quote lowered the selling price and raised the trade in equity, but it included over $1600 in capitalized tax that was not included on the first quote. I’ve asked the salesman three times via text if he could explain it, but he never does. Can anyone tell me what it is?

Tax is tax. Capitalized means the tax was rolled into the CAP cost. NY collects the tax upfront. You either pay it upfront or capitalize it (roll it into the payments)

Ahhh okay. So had I taken that first quote they would have charged me the taxes on top of any down payment? Is cheaper to use one option over the other or the same?

kyfdx

samlane86 said:

kyfdx said:

samlane86 said:

I’ve received two quotes on a Chevy Bolt. The second quote lowered the selling price and raised the trade in equity, but it included over $1600 in capitalized tax that was not included on the first quote. I’ve asked the salesman three times via text if he could explain it, but he never does. Can anyone tell me what it is?

Tax is tax. Capitalized means the tax was rolled into the CAP cost.

NY collects the tax upfront. You either pay it upfront or capitalize it (roll it into the payments)

Ahhh okay. So had I taken that first quote they would have charged me the taxes on top of any down payment? Is cheaper to use one option over the other or the same?

I would guess you are correct. Of course, I can't see the deals.

In NY, you'll actually pay less tax by paying it upfront (a little), and also avoid the finance charges that go with capitalizing it (again, a little).