Slight confusion on rebates

[rmcnamee]

I need some help with the rebates and cash back offers. Can the rebates/cash back offers only be applied to the "cash down" factor and not the purchase price of the truck? I thought that if a truck had a sticker price of $44,000 and the dealer took $4,000 off the sticker, which would make it $40,000, then the factory was offering a combined rebate of $2,000, that reduce your purchase price to $38,000. This is what I thought, but I guess I was wrong because according to my dealer, the combined $2,000 in rebates (which I am qualified for) actually gets applied to the required cash down factor. So, the total taxable amount is $40,000 and not $38,000 (unless you are trading, then it would be the total taxable amount would be the difference between the purchase price and the trade-in times 6%). If I haven't confused everyone and you can lend some info, I'd appreciate it.



Thanks

Ryan

 

[JWTX]

I am not paying taxes on my rebates. I have the buy sheet in front of me. It reads:



Vehicle price

+ Dealer Inv Tax

+ Accessories

- Rebates

= Total Cash Price

Trade Allowance

Taxable Difference (Total Cash Price - Trade Allowance)

+ Tax

+ Document Fees

+ License Fee

+ Transfer Fee

+ Title Fee

+ State Inspection

Total

- Deposit

- Cash on Delivery

Total Balance Due



Hope this helps. The buy sheet was just a form that they filled in the blanks on. Of course some of this could vary from state to state.