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Problems canceling extras

Frequent Contributor

Problems canceling extras

When I bought my new car in January I picked up the Extended Warranty and GAP. After giving it some thought I decided to cancel within the first 30 days for a full refund which is what my paperwork says. The dealer was great with canceling the extras and didn't give me any problems but he did say that the sales tax ( 6% ) was not refundable because it was included in the contract. How is this so?? Why should I pay sales tax on stuff I cancel. I'm not really getting a full refund if I gotta pay the sales tax on it.

 

Hyundai Finance can't really do anything it's up to the dealer. I don't want to turn the dealer over to the state tax office unless I have to.

 

Anyone have any experience with this issue?

5 REPLIES
New Contributor

Re: Problems canceling extras

When you return an article of clothing to a department store, do you get sales tax back? Yes. To the best of my knowledge there is so seperate clause for intagible things such as GAP and an extended warranty on a vehicle. Kindly suggest that you have an attorney one call away and it should not be an issue.

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Valued Contributor

Re: Problems canceling extras

Chances are that the dealership has already included the full sale in their tax reporting and the state does not have a process for refunding it. The sales tax is no additional profit for the dealership so they would have no incentive to keep it from you.

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Frequent Contributor

Re: Problems canceling extras


HoldingOntoHope wrote:

Chances are that the dealership has already included the full sale in their tax reporting and the state does not have a process for refunding it. The sales tax is no additional profit for the dealership so they would have no incentive to keep it from you.


Do i have any options in getting this back or you think i'm screwed? My local tax office closed today due to the weather and last time i spoke with dealer they basically said sorry there was nothing they could do. It ain't much like $186 but still.

Valued Contributor

Re: Problems canceling extras


HoldingOntoHope wrote:

Chances are that the dealership has already included the full sale in their tax reporting and the state does not have a process for refunding it. The sales tax is no additional profit for the dealership so they would have no incentive to keep it from you.


They would take it as a sales adjustment in their next reporting period if that was the case.  The way Sales Taxes are reported (at least in CA/NV/AZ) is you report what your sales are and calculate the salex tax owed off of that.  They would simply reduce their reported sales by their returns (in this case the extras).  There is no reason for them not to refund the sales tax.

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Valued Contributor

Re: Problems canceling extras

Good info thanks. Then the OP may have a case for the refund.

Best financial advice I ever got: "Just imagine what an adult would do and do that."

Starting Score: 500's
Current Score: EQ 701 (FICO) TU 721 (FICO) EX 715 (Quizzle)
Goal Score: 760 ALL


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