Hey all - long-time RL lurker, first-time poster here! I'm a former Cayman S owner, am picking up a '16 GT4 next weekend, and am SUPER psyched to have a .2 GT3 on the way (January build, April delivery). I've done a bunch of forum searching on one topic that I can't seem to find any insight for, so I figured I'd ask here...

I'm one of the "idiots" who is paying a modest ADM to get my GT3 relatively quickly. It's worth the $ to me, and I'm able to put the principal-based frustration aside, so I'm pretty zen about getting "screwed." What I'm not super happy about is the thought of paying sales tax on the ADM. To me, I see an ADM as more of a service than a product. I'm paying the dealer to score me an allocation sooner than I'd be able to get at MSRP. Services aren't taxed, so why should my ADM?

Has anyone out there had luck in framing an ADM that way? I'm not looking to do anything shady or illegal, I just don't want to get taxed on a service. Any insight would be appreciated! Oh, and if anyone wants to talk me out of my ADM with a mid-2018 delivery slot at MSRP, PM me!

Cheers,

Kevin

 

ADM is part of the overall price and it’s taxed. Since you are “zen” about the ADM then I’m sure you are “zen” with the sales tax.

 

I think you're reaching there. MSRP is just that - a SUGGESTED retail price. They can ask whatever they want and there's no implied "value-add" for the amount over MSRP, even if you see it as such. From the standpoint of their books, there is Selling Price - Invoice = Profit. MSRP is a guideline they can choose to embrace or ignore. The fact that they frame the price to you as "MSRP + xx" has no bearing. It's just the price. You ain't gettin' nothin' extra for it other than a car you might not otherwise get.

 

Take it to the dealer in those terms and ask them to reduce the ADM by whatever percentage you are paying in sales tax to make it a wash. Doubt they go for it but it never hurts to ask.

 

That’s an idea, I doubt they’ll do it but you should try it

 

Never would I suggest any thing illegal but the only way would be to pay, in cash, outside of the MSRP invoice at closing.

But - the Dealer would have to be in on it but for a measly $20,000-$30,000 no Dealership would take that chance because they could royally screw themselves

 

Thanks for the replies all! More or less what I expected to hear. I'm reaching here for sure, although it never ceases to amaze me how often a reach turns into an unlikely win. Your idea @wareaglescott has some promise. In the spirit of reaching, it can't hurt to give that a go!

 

You will pay tax on the ADM; I paid $10K over for my car in 2015, and I paid tax on the total price paid. What if you bought a 250 GTO for $50MM at Pebble Beach? What should you pay to plate it in California? Original MSRP?

However.

I have purchased all 3 of my 911s used, and I have paid a deposit for each of them to hold the car; it was $1,000 in each case, coincidentally. The result was that the bill of sale reflected a $1,000 "credit" toward the purchase, so I only paid the balance. I believe - although I'm not 100% certain off the top of my head - that I only paid sales tax on the balance paid. All 3 in Georgia.

 

"I have purchased all 3 of my 911s used, and I have paid a deposit for each of them to hold the car; it was $1,000 in each case, coincidentally. The result was that the bill of sale reflected a $1,000 "credit" toward the purchase, so I only paid the balance. I believe - although I'm not 100% certain off the top of my head - that I only paid sales tax on the balance paid. All 3 in Georgia."

The deposit (credit) would be off the bottom line number, which was taxed. So price + tax - deposit (or down payment). Otherwise you could put a 110,000 deposit down on a 111,000 car and only pay tax on 1,000.00.

 

There is an opportunity for gamesmanship, of course.

However, I stood in the tag office in my tiny, tiny hometown in North Georgia and double checked the calculation of the tax bill on my 991 GT3. They got me for the fixed costs plus the balance (ie, I saved $70 in taxes).

 

Just be happy you're getting a .2GT3.

You're going to pay the tax regardless.

 

ADM isn’t a service. It’s the selling price of the car. Pay up, it’s only money. You’re in deep enough as is. What’s an extra couple grand?

“If anyone wants to talk me out of my ADM with a mid-2018 delivery slot at MSRP, PM me! ”

What on earth does that mean?? You don’t have an “MSRP slot” with an ADM attached to it. It’s not called an MSRP slot then. Or is this a veiled flip advertisement?

An “Idiot getting screwed in Zen”?? You should have no problem living with paying to play.

 

Four little words:

Montana
L
L
C

 

 

You're not the first guy to pay sales tax on ADM. State's law is probably specific on this. Many states, tax base is the "higher of" book value or actual selling price.

Montana LLC probably not a good option considering he's in California.