Automotive

Buying New Car and TAX (Ontario)

  • Last Updated:
  • Mar 10th, 2013 9:47 pm
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Newbie
Aug 1, 2008
35 posts

Buying New Car and TAX (Ontario)

Well i'm looking at buying a new car and I need to know how they should calculate TAX
When I go to the manufacture website and build & Price the car (Elantra GT SE Tech Auto)
They show Price $26,349.00
Then they show Cash Purchase Adjustment $-2000.00
Other Price Adjustment $-500.00
Delivery and Destination $1495.00
Other Tax $129.70

So my question is do you take the discounts off then pay tax on the total ie 26,349-2,000-500+1,495+129.70 = $25,473.70 + HST% = $28,785.28
or do you take the discounts after ie 26,349 +$1495 + 129.70 = 27,073.70 + HST% = 31,610.28 - 2,500 = $29.11.28

So it's a $325 savings if they take the discounts off then add tax but what is the proper way

Just want to make sure they are calculating things correctly
They also seem to have other charges but I will have to work with the dealer on what other charges they have but as this one is on the website I though someone would be able to help
Thanks in advance
3 replies
Deal Expert
Oct 7, 2010
15536 posts
5790 upvotes
Should be adding tax after the discount.

Do you pay regular price when buying regular items at stores / tax it, then minus the discount amount? Possibly not.
Newbie
Aug 1, 2008
35 posts
Thanks thats what I thought too but was in a deal not really makeing a deal but they were reviewing some of the upfront pricing and that is how he calculated it seemed strange
I think it's so when I do push to drop price look like an easy 325 drop without even doing anything but billing things properly lol

OK just wanted to make sure
Newbie
Jan 12, 2013
15 posts
KITCHENER
According to hyundaicanada.com... "Price adjustments applied before taxes."
Some manufacturer incentives are after tax. Read the fine print.

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