Purchasing an RV and taxes
Wow what a mistake. We had our eyes on an RV made by Thor as our next purchase and trading in our old RV.
On a whim we found a unit in Panama City Florida. We stopped and worked out an acceptable deal.
In the end the dealer wrote of the paperwork using retail prices. The new RV was listed at MSRP and our trade was grossed up well beyond book value. This all seemed innocent enough as the bottom line came to the negotiated price.
30 days latter in our home state of VA it was time to take care of registering the motor home at the state and county level. Turns out DMV uses the bill of sale and bases its taxes on the sale price of the new home and the county uses the same number DMV uses. This resulted in an overpayment of taxes in excess of 12k in the first year.
When purchasing a new motor home be careful in how the dealer draws up paper work. If they start at MSRP as the "sale price" and work down through various deductions such as promotions, inflated down payments etc. you could be in for a surprise when and if you have taxes based on the "sale price".
We contacted the dealer and explained our issue and how they way their paperwork exposed us to the unexpected taxes and sought a affidavit of the legitimate sales price. They would not produce the documents.
So a very expensive lesson learned. With 100k plus RVs pay attention to the sales price listed on your documents. No monkey business on the paperwork!
On a whim we found a unit in Panama City Florida. We stopped and worked out an acceptable deal.
In the end the dealer wrote of the paperwork using retail prices. The new RV was listed at MSRP and our trade was grossed up well beyond book value. This all seemed innocent enough as the bottom line came to the negotiated price.
30 days latter in our home state of VA it was time to take care of registering the motor home at the state and county level. Turns out DMV uses the bill of sale and bases its taxes on the sale price of the new home and the county uses the same number DMV uses. This resulted in an overpayment of taxes in excess of 12k in the first year.
When purchasing a new motor home be careful in how the dealer draws up paper work. If they start at MSRP as the "sale price" and work down through various deductions such as promotions, inflated down payments etc. you could be in for a surprise when and if you have taxes based on the "sale price".
We contacted the dealer and explained our issue and how they way their paperwork exposed us to the unexpected taxes and sought a affidavit of the legitimate sales price. They would not produce the documents.
So a very expensive lesson learned. With 100k plus RVs pay attention to the sales price listed on your documents. No monkey business on the paperwork!
