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Ely, Counselor at Law
Category: Consumer Protection Law
Satisfied Customers: 102368
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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I purchased a used vehicle in TN on a trade in Monday. I recieved

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I purchased a used vehicle in TN on a trade in Monday. I recieved a call from them today on wednesday stating they needed an additional $1700 dollars for taxes in Ohio. I live in Ohio and they knew this prior to the sale and even did a tranfer for the plates. Is this Legal and is this owed to the dealership after the fact.
Hello friend. My name is XXXXX XXXXX welcome to JustAnswer. Please note: (1) this is general information only, not legal advice, and, (2) there may be a slight delay between your follow ups and my replies.

I am sorry for your situation. No, it is not legal. They can no more charge you extra for anything unless the contract states so, than you can lower the amount.

So if the contract is clear and the tax burden falls on them and that final sales price that you pay includes that tax, then it is their loss and their problem. Assuming the contract does not state that you have to pay additional money, and assuming the contract states that they take care of the taxes, then they have to live with their mistake.

A letter may ensure that they do not abuse their wrongful assumption. For example:

To Whom It May Concern:

This letter is in regards XXXXX XXXXX sale of the vehicle ____ (herein "vehicle") to me on (DATE) by your dealership.

Please note that the final price of the vehicle was $____. The contract explicitly states that the dealer (i.e. you) shall cover any taxes associated with transfer of the title from you to me. As such, the dealership is responsible for doing so. Nothing in the contract states that I have to pay more money for the transfer of the title, and as such, it is understood and enforcing that the dealer does, under contract.

Ergo, I must ask you to cover the taxes yourselves. Please note that not doing so and/or refusing to execute the sale will be seen as failure to perform and cause for breach of contract: the basic elements of a breach of contract case under Tennessee law must include (1) the existence of a contract, (2) breach of the contract, and (3) damages which flow from the breach. Life Care Centers of America, Inc. v. Charles Town Associates Ltd. Partnership, 79 F.3d 496, 514 (6th Cir. 1996) (applying Tennessee doctrine).

Ergo, the request is made that the taxes is paid by you, and that the sale is finalized.

I now consider this matter closed, but, should there be any questions, please do not hesitate to contact me at ___________.




This may very well have them simply agree to pay the taxes, and get something for the vehicle, rather than to risk litigation.

Now, note that again, I am making the assumption that the contract has the dealer pay for the taxes (which it often does). If the contract is silent, or has YOU paying for the taxes, then please REPLY and let me know.

I hope this helps and clarifies. Good luck.

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