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An Interesting Purchase Dilemma

Discussion in 'Lamborghini Discussion (not model specific)' started by ghost, Apr 18, 2005.

  1. ghost

    ghost Formula Junior
    Lifetime Rossa

    Dec 10, 2003
    643
    Singapore
    Full Name:
    Vik
    Wanted to turn to the community for advice on behalf a friend.

    - A friend who lives in the area (East Coast) is keen on purchasing a new 2004 Gallardo from a West Coast dealer.

    - Lamborghini is apparently serious about dealer encroachment - inadvertant or intentional - and prevents sales of new cars if an authorized dealership is within 100 miles of the buyer.

    - Two dealers are in the East Coast area, neither of whom want to trade with the WC dealer (reason not provided by EC dealers - "they just said no" indicates the WC dealer).

    - My friend has his own friends that would buy the car for him in a relevant jurisdiction, but I assume this wouldn't work given New York State laws require you to pay tax on a vehicle regardless of whether dealer or private party purchase. As such he would be subject to double taxation - once upon sale of car to friend in State X, and once again upon purchase of car from friend in State X.

    He wants the car. What's he to do?

    Thx.
     
  2. Kds

    Kds Karting

    Hey Vik........

    Has the EC Lambo dealer refused to sell him the car directly ? Maybe that's why they won't dealer trade.....maybe they are expecting him to call and he hasn't yet.

    In the years I worked for franchised high end dealers we all had back door tricks for this situation, or we plain just didn't care, and rode the heat from the manufacturer on the occasional out of territory sale.

    It's not like Lambo is a volume brand either.......they need every retail delivery number that they can get.
     
  3. richard_wallace

    richard_wallace Formula Junior

    Feb 6, 2004
    402
    Cincinnati, Ohio
    Full Name:
    Richard Wallace
    Well ain't this interesting :)

    Well Hypothetically - one of those West Coast Friends could buy the car and not register it - specifically if they were not in the said state they were purchasing the car from - and then they could take the car to the said state where they live and then register it and title it...

    What I guess I am saying - and which I have done several times - go buy the car in the state that it resides - do not pay tax, title, etc. When you - I mean your friend gets back to NY - just register and title it there - you will not save any money - and everyone gets what they need from the tax, etc. So all is on the up and up.

    When I lived in Chicago and had my place in Florida and Cincy - I would buy a car - not knowing where it would reside - and I would decide later - sometimes months later where I wanted it to "live"... If it is a problem doing this - I never had a problem doing it - or was even questioned when I went to register it...
     
  4. ghost

    ghost Formula Junior
    Lifetime Rossa

    Dec 10, 2003
    643
    Singapore
    Full Name:
    Vik
    He hasn't called the EC dealers Kds, because the WC dealer reached out to them first, and the EC dealers flat out refused to even entertain the option. You seem to think it might help if my friend speaks directly to the EC dealers - probably makes sense.

    My friend asked the same question - ie, why don't you just "do it and deal with it" but the response he got back was that Lambo takes this stuff pretty seriously, and would penalize by withholding "hot" allocations (like Murci Roadster) and reducing dealer kickbacks, so there is a strong inclination not to. Not sure how much is true, and how much is spin.

    I take your point on "a sale is a sale," and will ask my friend to push the WC dealer harder.

    Thanks for your thoughts.
     
  5. Kds

    Kds Karting

    It's more than likely salesman spin for "I want my commission"............I used to do it all the time.

    If it's a hot car that gets sold like this they'd really get PO'd big time..............evidently the WC dealer wants this G-car off his floor plan............so as the EC dealer "won't trade" (heresay perhaps ?) either or they'd be stuck with a G they might not floor and be back at square one as well. If the car was a hot seller.....they'd do the trade....no problem. My take anyways............

    He should call them directly..........just get any sales rep on the phone and try to cut a deal. The easier and more profitable it is...the more inclined they will be do it.
     
  6. ghost

    ghost Formula Junior
    Lifetime Rossa

    Dec 10, 2003
    643
    Singapore
    Full Name:
    Vik
    Interesting Richard. How does the WC dealer make this happen - when they fill out the purchase paperwork, don't they need my friend's particulars (mailing address, driver's license, etc., etc.), which will obviously be East Coast references?

    The title and paperwork will obviously come when the car is registered with the NYS DMV (as will the tax) so those issues I understand, but it seems strange that Lambo's rules could be so easily circumvented by buying in that state.

    Also, how would the financing work. If you go with a national bank like Chase, etc., wouldn't they need my friend's relevant details - again all references to the East Coast?

    Do elaborate.
     
  7. wings

    wings Formula Junior

    Dec 13, 2003
    315
    Some Dealers have a policy that they must collect "sales tax" on every new car they sell whether it is going out of state or not being registered. They do it to protect themselves should an audit by state officials somehow cause the dealer to be responsible should the tax not be paid. I know of one dealer who would not sell a $185000 car to a private dealer who dealt mostly with used cars. The private guy had a dealer license and wanted to buy this new expensive car, tax free, drive it for a year then sell it and maybe make some money. The new car dealer said no pay tax no get car and the deal fell through. There was also the question of whether the private dealer had a license to sell new cars or only used cars. It was believed he was only licensed to sell used. Still, it came down to "Company Policy"!
     
  8. darkalley

    darkalley Rookie

    Aug 17, 2004
    43
    Full Name:
    Jim
    I'm still missing something. Why doesn't your buddy just look for an East Coast car?? I have to assume he's better off getting the car from the dealer that is going to be doing the service.
     

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