Would you call?

[teller80]

We leased a car last fall, and yesterday the dealer sent us a nice sized check that says "tax refund". Huh? My thought is just to deposit it, but my husband thinks we should call to make sure it's not a mistake.

But so what if it is? We deposit it and later they ask for it back. What are we out?

So, what would you do?

 

[LovesTimone]

I would call. We get this check type sales promotion's all the time, some look like real checks. Also why would the dealer send you a " tax refund"?

 

[Hikergirl]

We get "checks" all the time from dealers, they are those promo ones. I would assume it is one of them unless it is accompanied by an actual letter informing you that somehow you over paid the tax on your lease.
We only leased once before so I don't know if that is common, call to be sure. No way would I just deposit it.

 

[Alesia]

Was it just a check or did it come with a letter of some kind? Did you finance the car directly through the dealer? Did you read the fine print?

 

[teller80]

No letter with it and I guess we financed through the dealer (aren't all leases through the dealer?). It's our first time leasing so not really sure. I'll take another look at the check to see if it's a promo offer. Thanks!

 

[DawnM]

Was there any other information included?

We get promo checks and then there are checks we have gotten before that have info attached with things like, "If you cash this you are agreeing to X or Y" make sure there aren't conditions attached.

Usually the conditions have to do with not suing.

 

[Queen of the WDW Scene]

I would call.
I'd much rather make sure its not a mistake now than deposit it, eventually use the money because well its there and I want a new blah blah blah, and then a year from now have them contact you and say they need the money back.

 

[Shmily1]

I got one in the mail too but it had no notes. Just a check for I believe about $59 from a dealership I bought a car from in September. That bad boy went right in my checking account!

 

[dclpluto]

Cash it

 

[supersnoop]

Which state do you live in? Actually, it could depend on your county or even your city. Because leases are complicated.

A leased vehicle is the property of the leasing company, which makes it "business personal property," so the company has to pay property taxes on the car, the same way you pay property taxes on your house. That's typically built into the lease payment -- they have to pay the taxes, but they get the money from you. Some areas specifically exempt lease vehicles used solely for personal use. So, the company might have been collecting the taxes from you, but then found out they weren't owed because of where you live.

Another scenario, although less likely, would occur if you leased the car from a dealer in a different state. Some states collect sales tax on the full price of the car. The leasing company buys the whole car, but they make you pay the entire sales tax. Other states only collect sales tax based on the value of the lease. So, if they collected the full amount from you up front, they might have realized that it wasn't owed and sent the refund.

This is all part of why leasing is a terrible idea in Texas. You have to pay sales tax on the full price of the car up front, and you have to pay sales tax again if you purchase the car at the end of the lease. You also have to pay property tax on the car during the lease term. These taxes could easily double your payment.

 

[teller80]

Which state do you live in? Actually, it could depend on your county or even your city. Because leases are complicated.

A leased vehicle is the property of the leasing company, which makes it "business personal property," so the company has to pay property taxes on the car, the same way you pay property taxes on your house. That's typically built into the lease payment -- they have to pay the taxes, but they get the money from you. Some areas specifically exempt lease vehicles used solely for personal use. So, the company might have been collecting the taxes from you, but then found out they weren't owed because of where you live.

Another scenario, although less likely, would occur if you leased the car from a dealer in a different state. Some states collect sales tax on the full price of the car. The leasing company buys the whole car, but they make you pay the entire sales tax. Other states only collect sales tax based on the value of the lease. So, if they collected the full amount from you up front, they might have realized that it wasn't owed and sent the refund.

This is all part of why leasing is a terrible idea in Texas. You have to pay sales tax on the full price of the car up front, and you have to pay sales tax again if you purchase the car at the end of the lease. You also have to pay property tax on the car during the lease term. These taxes could easily double your payment.

Actually, this is exactly what happened, we leased it in NJ but live in OH. I'm going to have to dig the paperwork out and call them. I don't think it's a sales promotion because the check isn't a round number (it ends with 1.47). Thank you for the info!

 

[disneyfantotheend]

I would call. What do you have to lose? If it isn't really a check you will know. If it is really a check, you don't have to just deposit it and leave it sit just in case they find out it was an error down the line.

 

[cedricandsophie]

It's a check for reimbursed state taxes. Should probably be treated as taxable income,

 

[supersnoop]

It's a check for reimbursed state taxes. Should probably be treated as taxable income,

It's a refund. He already paid taxes on that money. It's not income.

 

[ronandannette]

I would call. What do you have to lose? If it isn't really a check you will know. If it is really a check, you don't have to just deposit it and leave it sit just in case they find out it was an error down the line.

I totally agree; why not just call? Then you will find out exactly what the cheque is for. I'd want to understand (even if the cheque is legit), but maybe I'm weird like that.