Order/Build Deposit Question?

[mavmrb3]

My question is:

If you decide to purchase the vehicle after order delivery, when in the transaction is your build deposit amount applied to the sale of the car?

1. Before taxes
2. After taxes

Can anyone answer me?

I'm seeing the dealership tomorrow (1/11/20) to order. This dealership gave me the best price out of the others. This car dealer is requiring $1,000.00 deposit. He quoted me price for the 2020 Mustang Bullitt (MSRP: $52,595.00) at $50,025.04 + TTL and Doc fee. Finally under invoice $50,032.00.

Thank you...

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[Bikeman315]

My question is:

If you decide to purchase the vehicle after order delivery, when in the transaction is your build deposit amount applied to the sale of the car?

1. Before taxes
2. After taxes

Can anyone answer me?

I'm seeing the dealership tomorrow (1/11/20) to order. This dealership gave me the best price out of the others. This car dealer is requiring $1,000.00 deposit. He quoted me price for the 2020 Mustang Bullitt (MSRP: $52,595.00) at $50,025.04 + TTL and Doc fee. Finally under invoice $50,032.00.

Thank you...

OK Brady, I'm not sure I totally understand your question but let's try this.

Regardless of whether you are ordering a car or buying off the lot your deposit goes to the cost of the car. The tax is then added onto the net price of the car.

Example:

Cost of car: $50,000
Deposit $ 1,000
Net Price $49,000

You pay the tax on $49,000.

Hope this helps.

 

[mavmrb3]

OK Brady, I'm not sure I totally understand your question but let's try this.

Regardless of whether you are ordering a car or buying off the lot your deposit goes to the cost of the car. The tax is then added onto the net price of the car.

Example:

Cost of car: $50,000
Deposit $ 1,000
Net Price $49,000

You pay the tax on $49,000.

Hope this helps.

What you are saying then is deposit before taxes.

 

[Bikeman315]

What you are saying then is deposit before taxes.

Yes. If they do it after you are paying tax on the deposit.

 

[Zooks527]

Regardless of whether you are ordering a car or buying off the lot your deposit goes to the cost of the car. The tax is then added onto the net price of the car.

Example:

Cost of car: $50,000
Deposit $ 1,000
Net Price $49,000

You pay the tax on $49,000.
.

No. If this example were correct, you could put a $50,000 deposit down on the car and avoid paying any taxes. That isn't going to happen.

Rebates and trade-in are "above the tax line" items, as they effect the amount of cash you're giving for the car. Deposits and other out-of-your-pocket items are applied below the tax line.

 

[Bikeman315]

No. If this example were correct, you could put a $50,000 deposit down on the car and avoid paying any taxes. That isn't going to happen.

Rebates and trade-in are "above the tax line" items, as they effect the amount of cash you're giving for the car. Deposits and other out-of-your-pocket items are applied below the tax line.

Sorry Brady I had this backwards. Do not know what I was thinking. Z thank you for correcting.

 

[mavmrb3]

No. If this example were correct, you could put a $50,000 deposit down on the car and avoid paying any taxes. That isn't going to happen.

Rebates and trade-in are "above the tax line" items, as they effect the amount of cash you're giving for the car. Deposits and other out-of-your-pocket items are applied below the tax line.

So, after taxes.

$50,000
$3,000 -- 6% tax (PA)
$53,000
$1,000 -- Deposit
$150 -- Doc Fee
$100 -- Title/Tag

Like that?

 

[Zooks527]

So, after taxes.

$50,000
$3,000 -- 6% tax (PA)
$53,000
$1,000 -- Deposit
$150 -- Doc Fee
$100 -- Title/Tag

Like that?

Yes.

 

[mavmrb3]

I ordered on 1/11/2020. Allocation should be in today? That's what the dealer said...

2020MY Mustang Bullitt - Dark Highland Green | Electronics Package | MagneRide Damping -- MSRP: $52,595.00

The invoice for this package and option is $50,032.00. I bought $174 below invoice.

Sell price: $49,897.00

I probably could have done better if I bought outside of small towns central PA. A local dealership makes it convenient. I justify at least it is a 2020 year and a special addition of the '68 Mustang GT Fastback 390 with heritage wheels and you don't have that much leverage with an order/build. Heck, when the 2019MY editions came out dealerships were selling them at MSRP firm and sometimes over.

Now I have to figure out the process through the weeks. I have the copy (yellow) of the purchase order. What's next?

 

[mavmrb3]

I am so tickled HAPPY! I went over to the dealer who orders build vehicles. I ordered on Saturday 1/11/20. He told me the allocation would be in on Friday, 1/17. That day went by and nothing. I came by yesterday 1/23 to see if he got the allocation. He did! It was earlier in the week. He was trying to reach me to tell me but he couldn't. LOL! He was calling the wrong # I don't have anymore? So, we sat down and he handed me the DORA paper showing it was processed (order confirmed) on 1/21/20 with order receipt on 1/11/20. He showed me the key information on dealer order receipt acknowledgement.

1) Priority 01 - the Pittsburgh Regional Scheduler who gets the ball rolling,
2) Order #: 0110
3) Dealer #: 44W447
4) Retail Order Priority #: 19 (assigned)
5) VIN #: assigned. I have it to plug in and track
6) Build Date (Scheduled Production): 3/23/20

I thought it took longer, perhaps 3-4 weeks for car production schedule and VIN assignment? I got it in 10 day? At the rate it is moving with car production beginning at that tentative date and ending usually a week afterwards, there is only assignment of shipping and the car gets moving. The Bullitt could be here some time in mid to late April!

Hopefully, there will be a parts shortage or something to slow the production. I was looking at having it in late May or early June. The garage is almost done. I expect it to be completely finished by mid May, except for the epoxy floor paint.

Brady

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