double taxes on refinanced car through a car loan

[rkh]

What is the name of your state (only U.S. law)? california

I refinanced my leased car by an auto loan from a financial institution other than the dealership. now the dealership and the institution are both charging me taxes on the car. what should i do.

 

[FlyingRon]

You've lost me. What exactly is this transaction? Are you financing buying out the lease? Is the lease transfer (essentially the bank is buying out your existing car and leasing it to you)?

 

[rkh]

details of the case

I had a car leased for 3 years. I decided to buy out the car at the end of lease. when I requested for the buyout package, the dealer put the residual amount plus sales taxes (9%=calif. tax). I got a loan from a bank but the bank said I have to pay taxes on what ever is mentioned in buyout package and pay the registration fees etc. the residual was 12000, the sales tax reported from DVM rounds up to 2000$. leaving 14000$ needed to be paid to dealership. now the bank says i have to pay 0.09*14000 = 1260$ taxes as well (again) for car registration to them.

 

[rkh]

You've lost me. What exactly is this transaction? Are you financing buying out the lease? Is the lease transfer (essentially the bank is buying out your existing car and leasing it to you)?

I had a car leased for 3 years. I decided to buy out the car at the end of lease. when I requested for the buyout package, the dealer put the residual amount plus sales taxes (9%=calif. tax). I got a loan from a bank but the bank said I have to pay taxes on what ever is mentioned in buyout package and pay the registration fees etc. the residual was 12000, the sales tax reported from DVM rounds up to 2000$. leaving 14000$ needed to be paid to dealership. now the bank says i have to pay 0.09*14000 = 1260$ taxes as well (again) for car registration to them

 

[FlyingRon]

You need to confirm with the dealership that they paid the sales tax for you and then take that information to someone higher up at the bank and show it doesn't need to be paid again.

 

[rkh]

You need to confirm with the dealership that they paid the sales tax for you and then take that information to someone higher up at the bank and show it doesn't need to be paid again.

thank you for your quick response. I will run that with them.
The issue is that out of 14000$ check the bank was supposed to send to dealership they sent 12000 and withheld the tax. now the dealrship is after me saying i have to pay it in full.

 

[Zigner]

thank you for your quick response. I will run that with them.
The issue is that out of 14000$ check the bank was supposed to send to dealership they sent 12000 and withheld the tax. now the dealrship is after me saying i have to pay it in full.

Perhaps the bank doesn't want to loan you $14k?

 

[rkh]

Perhaps the bank doesn't want to loan you $14k?

they already approved 14K loan for me. they said they have to pay the taxes to DMV. someone here is double taxing me iguess

 

[Zigner]

they already approved 14K loan for me. they said they have to pay the taxes to DMV. someone here is double taxing me iguess

Ask the bank to contact the dealership to let them know that they will be remitting the taxes.