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Old 02-08-2006, 02:23 PM
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rockinbboy
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Default Destination charge question

Quick question..
When the sales tax is taken, is this the price of the car + destination or just the car alone?

Let me clarify:
let sales tax be 5%
destination charge = $605
car price = $25,000

A.) sales tax = 5% of ($25,000 + $605)

OR

B.) sales tax = 5% of ($25,000)

In general..when invoice prices are taken, do they include the destination charge already?

Just was crunching some numbers and making sure I don't do anything dumb.

Just makes a differenece when I calculate my OTD price of car, tax, destination charge, proc. fee, tags/registration.
Old 02-08-2006, 03:18 PM
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Swiffer
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Originally Posted by rockinbboy
Quick question..
When the sales tax is taken, is this the price of the car + destination or just the car alone?

Let me clarify:
let sales tax be 5%
destination charge = $605
car price = $25,000

A.) sales tax = 5% of ($25,000 + $605)

OR

B.) sales tax = 5% of ($25,000)

In general..when invoice prices are taken, do they include the destination charge already?

Just was crunching some numbers and making sure I don't do anything dumb.

Just makes a differenece when I calculate my OTD price of car, tax, destination charge, proc. fee, tags/registration.
Invoice does not include destination. Sales tax covers cost of the car + destination. If you want to see the OTD price, head over to edmunds.com. It will show you the invoice and the destination fees. I believe that sales tax is on those 2 combined. Take that price, and then add your proc fee and tags/reg. That would give you your otd price.

You can use this form to help calculate the price:
http://www.carbuyingtips.com/offer.xls
Old 02-08-2006, 05:36 PM
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rockinbboy
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Cool, thanks!
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