Can a dealer do this? (updated)
 

So my wife and I just bought an MDX . Today we get a call from the dealer that they miscalculated the taxes (we had a lease and traded it in as we had positive equity) and want a check for 1k. Thus far they have been awful to work with but since the car was a good deal we went with it. So my question is since we have a contract signed are we obligated to come up with more money? On top of that we found evidence the rear quarter had been resprayed. At this point I just want to give it back.
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how does a lease have positive value on a trade-in ?

they may get to revise the taxes maybe, as you owe the state not the dealer the correct amount

It held its value. 2k worth

I'd tell them you found the undisclosed damage. They can eat the 1k or take the car back... Their choice.

Yes, the tax liability is yours, based on the selling price. It's quite easy for a dealer to recalculate the selling price to meet the amount already collected from you so there is no outstanding tax. He could also just pay the balance. Of course, either of those steps means cutting his profit.

$1K short seems to be quite a bit of an error. Go over your paperwork and see if you can find the error. You might then, given the respray that apparently wasn't disclosed, renegotiate the sale to match the amount you've already paid. Depending on the wording of the contract, you may also be able to cancel the deal altogether. A lot depends on the contract.

The issue was that since we traded in a leased car, the car was in the lease co's name and thus we cannot get the tax credit they put in the deal. On the flip side they sell 100s of cars a month and I have no clue how this was overlooked.

Agreed that you should really scrub the paperwork. The taxes should be a known commodity. I have a used vehicle dealer's license in KS, I collect 7.5% sales tax from the customer on the net sales price and it is paid as part of the gross purchase price, i.e. one check from the customer. After I collect the gross purchase price, it is on me to pay the correct sales tax to the state. In the event that I miscalculate the sales tax, there is no guidance regarding who is liable. Personally, if it was my stupid mistake I would pay the correct sales tax out of my pocket and move on.

Being that you traded in a leased vehicle, I wonder if they screwed up the positive equity side of the equation and listed the vehicle at a lower net (taxable) sale price? Whatever they did, $1000 is a big mistake.

Is it truly a tax credit, as in from the government? Or did they incorrectly value your lease trade in?

They give you a tax credit on the trade and deduct it from the total taxes owed.

Payoff on lease = 16,500
Trade in = 18000 and thus sales tax was 1080 and this was removed from the final sales tax of the new vehicle. We are told this cant be done on a leased car that is traded in and they missed that fact. I just feel slighted.

I will only negotiate an "out-the-door" price.

I don't care what other numbers on the invoice for taxes, license, doc fees or any other junk fees are.
The only number that matters to me is the one I write on the check.
I write one check, you hand me the keys. Done.

At this point, either you have a deal, or you don't. If the deal is not final, you are still in the negotiating phase.

Never leased a car, just don't like the idea so my question, do you pay tax on a leased car.

I assume you pay something but is it on the full value or partial value?

If full value then it seems you should get the full credit.

If partial or no tax then it makes sense you would not get the full credit.

I would fight them on the respray, diminished value.

They'll probably reply that the car was already priced with consideration for the respray so you may want to do a little research on value.

We did pay tax on the lease up front.

Are we talking a new car? I'd return it.

The reason many people trade in is because of the tax advantage. I would take that into consideration. I'd tell dealer I'd have been better off selling car on your own, and back out the deal.

You negotiated a 'Done' price. Their fault if they can't add.

It wouldn't surprise me if this is a practice they've done before.... write it up and try to collect more later.

Dealer is eating the mistake.

If the numbers are screwed, you might have to sign the paperwork again. Just go for the gut feeling. If you do not want the car tell them to pick it back up.

nice

Yup..my wife is a bad ass

Perfect! They made the mistake, so they should eat it. It is not like they'll refund you money is they overcharged you.

Good outcome for you but regardless... The car is yours and that's it. Dealers stuff up all the time.
They ate it because they knew there was no way to force you to pay and taking you to court is not an option.

The repainted 1/4 panel has me concerned. Any info on what happened?