Customers were buried in their trades 48 years ago too....

[steve_biegler]

That's correct. Anything that has a license plate. The customer is required to take the MSO or title that we provide to the county treasurer to pay tax, fees and get their plate. Cars, trucks, motorcycles, trailers, boats, snowmobiles. Great for us because "Tax and Tags" do not become part of the negotiation. God I love South Dakota!

[XDCX]

Originally Posted by steve_biegler

That's correct. Anything that has a license plate. The customer is required to take the MSO or title that we provide to the county treasurer to pay tax, fees and get their plate. Cars, trucks, motorcycles, trailers, boats, snowmobiles. Great for us because "Tax and Tags" do not become part of the negotiation. God I love South Dakota!

Wow, that's really different.

For customers who are financing their vehicle and don't have much money for a down payment, how do they finance the sales tax and license fees?

[mryan55]

Originally Posted by XDCX

Wow, that's really different.

For customers who are financing their vehicle and don't have much money for a down payment, how do they finance the sales tax and license fees?

That is different. I can imagine that sometimes the dealership is in a bit of a trick bag if they have given the MSO to the customer who doesn't go to to pay tax and plate the vehicle in a timely manner... now the contract is funded, the customer has the MSO, and the bank wants the deal repurchased because the car has been rolling for 90 days and the bank hasn't received a title!

[steve_biegler]

The tax structure here is quite low compared to most states. 3% of the difference or what is paid if a no trade deal. Plates will average about 50 bucks, so the need to finance these into the deal usually didn't come into play.

As for the bank, we actually connect to the state system and register and perfect the loan before the customer gets the MSO or title, so the bank has their lien noted right away and we are off the hook. If the customer does not get to the county treasurer in 30 days they get a letter from the state and fines start, one dollar a week!

[mryan55]

At least there is a good setup in place!

In Indiana we still do a lot just with pen and paper, so no lien is perfected into the MSO physically visits a license branch or we do the titlework online. Either way, the customer only gets the MSO in one of three circumstances:

1) in state and cash deal
2) out of state and cash deal
3) dealership employee

[XDCX]

Originally Posted by steve_biegler

The tax structure here is quite low compared to most states. 3% of the difference or what is paid if a no trade deal. Plates will average about 50 bucks, so the need to finance these into the deal usually didn't come into play.

As for the bank, we actually connect to the state system and register and perfect the loan before the customer gets the MSO or title, so the bank has their lien noted right away and we are off the hook. If the customer does not get to the county treasurer in 30 days they get a letter from the state and fines start, one dollar a week!

In Arizona the sales tax varies based on location but it's at least 8.1% and the license fees are between $350 - $750 based on value of the vehicle. I don't think I could handle your cold weather in the winter but I sure like your low taxes in South Dakota.

I also smiled when I read about the $1/week fine for customers who do not title their vehicles within 30 days. Hell, I bet the Library Fines for a "Past Due" book in Arizona are higher than that...

[mryan55]

We are 7% statewide on the difference, new or used. Plates are fairly expensive here -- probably about $600 first year on a $50,000 MSRP car.

Our title fine is $10 if 30 days late.

[steve_biegler]

Our Governor just signed a bill that will increase Vehicle sales tax to 4% to help the highway fund. The good part is the bill also included an increase of the speed limit on our interstates to 80 MPH! Now I can go 86 with out much hassle.

[mryan55]

Originally Posted by steve_biegler

Our Governor just signed a bill that will increase Vehicle sales tax to 4% to help the highway fund. The good part is the bill also included an increase of the speed limit on our interstates to 80 MPH! Now I can go 86 with out much hassle.

We have sales taxes of up to 12% for some items depending on the county -- think higher sales taxes pre-prepared foods, Starbucks, etc. -- thankfully it hasn't extended to vehicles yet.