English: 8-Hour License Renewal Auto Dealer Course
Very Complex Example
assessment
Existing Dealers
Ex: A customer buys a vehicle for $8,000 plus dealer prep fees of $500 and trades in his old vehicle for $1,000. The manufacturer has issued a rebate for $1,000. The buyer is registering the vehicle in a county imposing a 1.0% surcharge.
| Sale Price | $8,000 |
| Dealer Prep Fee | $500 |
| Trade-In | ($1,000) |
| Taxable Base | $7,500 |
| Tax Due 6% +1.00% Surcharge | $500 ($7500 X 6% = $450) + ($5000 X 1.0% = 50) |
Please note that the customer in the above scenario would only be responsible to pay $7,000.
| Sale Price | $8,000 |
| Dealer Prep Fees | $500 |
| Trade-In | ($1,000) |
| Taxes (Calculated Above) | $500 |
| Manufactured Rebates | ($1,000) |
| Amount Owed By Customer | $7,000 |
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Course
English: 8-Hour License Renewal Auto Dealer Course
Author
Joaquin Jimenez
Instructor
