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Why does a car dealer need my zip code for pricing calculations?

acbaugh 167 276 December 17, 2015 at 06:28 PM in Autos (2)
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I've been doing some research to buy a new car, collecting tips, ideas etc...

No one explains why they give the dealer their zip code for "pricing calculations".

Any ideas?

Thanks in advance.

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#2
Is it the "out the door" price? If so, could be for city/county sales tax.
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#3
Quote from acbaugh View Post :
I've been doing some research to buy a new car, collecting tips, ideas etc...

No one explains why they give the dealer their zip code for "pricing calculations".

Any ideas?

Thanks in advance.
I think that's for the transportation fee, you car will be shipped from the factory to the dealer, this will cost depend on the distance
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#4
Quote from tennis8363 View Post :
Is it the "out the door" price? If so, could be for city/county sales tax.
Yes, it could be for taxes. Thanks

Quote from Aaron_H View Post :
I think that's for the transportation fee, you car will be shipped from the factory to the dealer, this will cost depend on the distance
The manufacturers I've seen charge the same no matter where you live. Thanks
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Last edited by acbaugh December 18, 2015 at 11:06 AM
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#5
also advertising fees vary by region, but you can buy from out of state and sometimes get some good deals depending on where you live. Vegas is am great place to buy a car.
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#6
Quote from komondor View Post :
also advertising fees vary by region, but you can buy from out of state and sometimes get some good deals depending on where you live. Vegas is am great place to buy a car.
I have noticed this as well. A Toyota Highlander in MI has a 1,021 fee for ads, while the same car is 858 in Indy.
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#7
Wow, I never knew that you had to do that. I mean it's pretty crazy that they want to know where you live so they can tax you based off that.
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#8
Quote from Andrew334 View Post :
Wow, I never knew that you had to do that. I mean it's pretty crazy that they want to know where you live so they can tax you based off that.
The way I understand it, if you buy out of state, your home state still collects the taxes.
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#9
Quote from acbaugh View Post :
The way I understand it, if you buy out of state, your home state still collects the taxes.
Correct.

As an aside, some dealerships will inquire as to where you live because some offer different pricing to people depending on where they live. e.g. If you're local, they're going to give you a price relative to local competition. If you're coming from 4 hours away, they may offer you pricing competitive with that area or they may offer pricing that is competitive on a broader scale. Liccardi in NJ, for example, often prices their vehicles $2-3K less online than they do on the lot. They will then tack on $1K "internet pricing fee" for the leads they get off the net. (Super shady dealership.)
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#10
my state colorado has probably 100 different sales tax rates each county, city, district can have there own sales tax so you wind up paying at least 3 different taxes on everything you buy the state city/county and district.

We have one district for mass transit, one for the football stadium then state sales tax and local. state tax is 2.9 but the total can go as high as 11, most places in the 8% range. You pay by where you live not where the dealer is located to complicate the issue.
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#11
Quote from ManUpOrShutUp View Post :
Correct.

As an aside, some dealerships will inquire as to where you live because some offer different pricing to people depending on where they live. e.g. If you're local, they're going to give you a price relative to local competition. If you're coming from 4 hours away, they may offer you pricing competitive with that area or they may offer pricing that is competitive on a broader scale. Liccardi in NJ, for example, often prices their vehicles $2-3K less online than they do on the lot. They will then tack on $1K "internet pricing fee" for the leads they get off the net. (Super shady dealership.)
Good point.

My takeaway from this is:

1) provide zip if pricing in a broad market
2) be vigilant for hidden fees. Request an itemized OTD price

Quote from komondor View Post :
my state colorado has probably 100 different sales tax rates each county, city, district can have there own sales tax so you wind up paying at least 3 different taxes on everything you buy the state city/county and district.

We have one district for mass transit, one for the football stadium then state sales tax and local. state tax is 2.9 but the total can go as high as 11, most places in the 8% range. You pay by where you live not where the dealer is located to complicate the issue.
Michigan has 6% sales tax no matter where you live in the state.
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Last edited by acbaugh December 23, 2015 at 06:24 AM
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#12
Quote from acbaugh View Post :
Good point.

My takeaway from this is:

1) provide zip if pricing in a broad market
2) be vigilant for hidden fees. Request an itemized OTD price

Indeed. After settling on an OTD price for my latest truck, the paperwork came back with a mysterious $1,200 charge on it; it was the infamous "window etching. I actually had to sit there and argue with him as he tried to convince me that I needed it. After he took it off, I signed the paperwork. Then when I picked up the vehicle I realized that the window etching had already been done by the previous owner - so the dealer was trying to charge me for a service they had no intention of performing.
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#13
Quote from ManUpOrShutUp View Post :
Indeed. After settling on an OTD price for my latest truck, the paperwork came back with a mysterious $1,200 charge on it; it was the infamous "window etching. I actually had to sit there and argue with him as he tried to convince me that I needed it. After he took it off, I signed the paperwork. Then when I picked up the vehicle I realized that the window etching had already been done by the previous owner - so the dealer was trying to charge me for a service they had no intention of performing.
I had a similar situation once. We agreed on a price, and then they came back with some etching fee and a documentation fee. I kept saying no, butwe eventually agreed that I'd pay both fees, but they would lower the car price by 50% of the fees (saved on some sales tax). In all the arguing back in fourth, they forgot to have me sign the fee paperwork, so I got a refund check three months latter since I had never signed for those "services".
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#14
Quote from acbaugh View Post :
I've been doing some research to buy a new car, collecting tips, ideas etc...

No one explains why they give the dealer their zip code for "pricing calculations".

Any ideas?

Thanks in advance.

You are right about the taxes but its also for Factory rebates that are many times calculated by Zip Code and County.
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#15
Some car dealers are so farking shady.... was negotiating DW's last car online; it got down to brass tacks and one dealer gave me the lowest price so I repeatedly asked him to itemize it in a final email. He kept on talking pieces of the itemization - for example - the price of the car or the trade in value of the current car - but wouldn't put it all with a total. finally they just stopped emailing me completely. I'm convinced they were trying to pull a fast one - I roll into the dealer to complete the purchase and hidden fees and other BS pops up that they conveniently forgot to mention.
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