As a JK noob, I did not think that my first post would be like this, but if I can save even one forum-reader from the rip-off that is being done to me then I will feel a little better.

I live in Georgia. About 8 weeks ago I was shopping for a new Rubicon and, unable to find what I was looking for locally, identified it online at Kahlo, a Chrysler/Jeep dealer in Noblesville, IN (a suburb of Indianapolis). I found that I could get a flight for about $100 from Atlanta to Indianapolis so I decided to pursue the matter and contacted the dealer.

I requested the sales manager and was given to the "internet sales manager", Micheal Ryan, who negotiated the final price and terms of the sale and who was my point-of-contact for the entire transaction. I was a little nervous about flying up there and getting surprised at the last minute with some new fee or whatever... you know how it can be when you are signing papers and suddenly see something new that was never discussed. So I was very hardnosed with Ryan on the phone over the course of a couple of weeks, pestering him by repeatedly asking him questions like, "And this is the total, out-the-door price? No extra fees, charges, etc of any kind?" Congratulating myself for my forethought, I even remembered to ask him about tax, title and tag fees. Since I am a Georgia resident, what is the procedure when buying a car in Indiana?

He repeatedly told me that his dealership would collect the taxes and deal with Georgia; that they dealt with other States all the time, that Indiana and Georgia had a reciprocity agreement and there there would be no additional taxes, fees or surprises.

I also took the time to call my county tag office and asked them what the procedure is; what should I know before I made the purchase? As with Ryan, I was told not to worry, that they (Forsyth county) deal with out-of-state car dealers all the time and that the dealers will collect the taxes and fees and forward them on to Georgia. That Forsyth County's tax rate is 7%, and that I would be responsible for any difference between that and whatever the dealer's local tax rate is. I had already been told by Ryan that their tax rate is also 7%, so at that point I told Forsyth county and they said fine, that there shouldn't be any further costs to me. So now I have both my local government and the dealer assuring me that any concern on my part was baseless.

I flew to Indiana and bought the car. When signing the papers and writing the checks we got to the point where they were collecting the 7% sales tax. At that point I again stopped everything, looked their finance manager, Keith Bush, right in the eye and asked if this were the only payment I was going to have to make in order to get tagged and titled in Georgia. He backed away, said that he did not know and could not guarantee it, and turned me back over to Ryan. Later he admitted to me that he knew at that time that he had no intention of turning over any money he collected from me to Georgia.

At that point I got angry. I grabbed Ryan and dialed the Forsyth county tag office on speakerphone. He was telling me that everything was fine, but I wanted to hear it from my tag office. Unfortunately there was no answer... it was Saturday.

In retrospect, it was at that point that I should have either walked away or gotten Ryan to sign a paper stating that I would not be liable for any further fees or charges associated with tax, tags or titles. But I didn't, I relied on his word. And I think I knew then that he would not sign such a guarantee.

Its just over 30 days and I still do not have a tag. My Indiana temporary tag has expired. Kahlo Jeep has refused to cooperate with Forsyth County. They insist that they are under no obligation to provide Forsyth with anything at all; taxes or documentation. Over the course of several days and a several phone calls, they did agree to overnight (directly to me) several of the items that Forsyth county requires for the titling process. But they continue to refuse to turn over any of the 7% sales tax that they collected from me.

My County tax commissioner insists that they are breaking the law... or at least the reciprocity agreement that exists between Indiana and Georgia. I asked him how he is so sure that they are breaking the law and he forwarded me a fax from the Georgia Dept of Revenue, Compliance Division (Lithia Springs) which is his basis for the accusation. I got a copy of that fax, where it says that, out of the 7% sales tax that I paid, I can be credited with only 4%, which is the State's portion of the 7% sales tax.

In other words, my County's portion is 3% and they are not going to give me a title or a tag until they get it. I am personally responsible for the remaining 3%. That represents about $1000.

So I am going to end up paying 10% sales tax on this jeep. Kahlo is pocketing at least 3% out of the 7% they forced me to pay when buying the Jeep. My County, even though they failed to inform me of the information I needed to know in advance when I asked them, is charging me an additional 3%.

So watch out when buying out-of-state!! There is not a lot you can do about incompetent government employees misinforming you and then holding you liable for it, but you can steer clear of unethical dealerships like Kahlo (and petty crooks like Keith Bush, their Finance manager).

 

WOW. Sorry to hear about the whole issue. Working for a dealership myself, we deal with out-of-state customers all the time, and atleast in Oklahoma, when an out-of-state customer buys a vehicle here, they are not liable to pay any taxes here - just in the state of residence where the vehicle will be tagged and registered. On the same note, I must also emphasize that Oklahoma does not charge a Sales tax on automotive purchase - just an Excise tax on vehicle purchase, ONLy if they'll be registered in Oklahoma. Several states, and I can ask one of our title clerks that has the big huge book of state laws for taxes and registrations to verify, do charge a Sales Tax AND an Excise Tax. Could it be that the 7% you were charged in Indiana was a Sales Tax?

In either case, I know that feeling will leave a bitter taste in your mouth for a long time to come, and wish it had ended differently.

 

i would have punched ryan in his face, found where he parked and deflated his tires and scratch his car till it looked like and ech a sketch

 

I live in LA but the dealerships near me were not willing to put any work into finding the Jeep I wanted. I found the one I wanted on the internet and it happened to be at a dealership in MS. I bought my Jeep in MS and had not issues with the tax, title license process at all. I am treat like I have leprosy by the local dealership though...

I hope you get this worked out, the dealership needs to refund your taxes!!

 

Wow! That sucks, seems like nowadays you have to say this call is being recorded for possible future use in a court of law! Dealerships like this are like bad layers giving others a bad name.

 

X2... Well, since dill seems to be a marine, I'd let him do it. ^

 

Yes, that's what it says on the Sales Agreement. 7% sales tax.

 

The dealer has my money. 7% and they refuse to turn any of it over to Georgia. I intend to call the Indiana Dept of Revenue to see if they are lying. The dealer says that they talked to the Indiana Dept of Revenue and that they "get to keep the entire 7%".

 

Granted the dealership misled you, it sounds like you're getting screwed more by your local gov't. If you bought the vehicle in Indiana, they should get the sales tax. I don't understand why Georgia is trying to collect sales tax on a vehicle purchased in another state.

 

I would be wild. I'm sorry to hear you are going through all this crap.