Billed for Sales Tax On Used Car After Signed Contract?

[laliAlloy]

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

We purchased a used car from a dealership. We agreed upon financing terms, signed the contract and left with the vehicle that evening. The next day we got a call from the finance manager to let us know we needed to return to the dealership to re-sign the contract because they neglected to charge us sales tax on the car and that our payments would increase $50 a month. According to our contract, Line I. Sales Tax (on taxable items A thru H), the amount states N/A.

My husband and I told them that we originally agreed on the current contract because the monthly payment was in our budget and creating a new contract would put us over budget. We said we'd keep the existing contract.

4 weeks later and we now received a bill for the sales tax from the dealership. Every person we have talked to is advising us not to pay that bill because we have a signed contract that doesn't state that sales tax due. One person thinks by not paying the tax we could jeopardize being able to register the vehicle. However we did pay the Registration/Transfer/Titling Fees and have a "used vehicle dealer notice/temporary identification" DMV form from the dealer.

Does anyone know if they can legally bill us for the sales tax after the contract is signed? Are we obliged to pay the tax? Could it make registering the vehicle difficult?

Thanks,

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

 

[Zigner]

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

We purchased a used car from a dealership. We agreed upon financing terms, signed the contract and left with the vehicle that evening. The next day we got a call from the finance manager to let us know we needed to return to the dealership to re-sign the contract because they neglected to charge us sales tax on the car and that our payments would increase $50 a month. According to our contract, Line I. Sales Tax (on taxable items A thru H), the amount states N/A.

My husband and I told them that we originally agreed on the current contract because the monthly payment was in our budget and creating a new contract would put us over budget. We said we'd keep the existing contract.

4 weeks later and we now received a bill for the sales tax from the dealership. Every person we have talked to is advising us not to pay that bill because we have a signed contract that doesn't state that sales tax due. One person thinks by not paying the tax we could jeopardize being able to register the vehicle. However we did pay the Registration/Transfer/Titling Fees and have a "used vehicle dealer notice/temporary identification" DMV form from the dealer.

Does anyone know if they can legally bill us for the sales tax after the contract is signed? Are we obliged to pay the tax? Could it make registering the vehicle difficult?

Thanks,

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

You are obligated to pay the tax.

 

[LdiJ]

My guess is that if you cannot demonstrate that you paid the tax to the dealer, the DMV will charge you the tax when you register the car. At least that is the way it works in most states.

However, I would pay the tax upfront if at all possible, because 50.00 a month for the life of a car loan is steep.