Q: Can a car dealership demand more money after purchasing a car due to “tax miscalculations”?

A: This situation raises important questions about contract law and your rights as a consumer in Washington State. Here’s an analysis:

Key Legal Considerations

Binding Contract:

The purchase agreement you signed with the dealership is a legally binding contract. It should clearly state the total amount you agreed to pay, including taxes, fees, and the price of the vehicle.

If the contract specifies the total amount as $37,700, you are not obligated to pay more unless the contract includes a clause allowing for additional charges under specific conditions.

Dealership’s Responsibility:

It is the dealership’s responsibility to calculate and remit the correct amount of sales tax to Washington State. If they made an error in their calculations, they may be liable for the shortfall unless your contract states otherwise.

Washington State Sales Tax Law:

Washington State law does require that the appropriate sales tax be paid on vehicle purchases. However, your obligation is generally limited to what you agreed to in the purchase contract unless there is evidence of fraud or misrepresentation.

Additional Charges Post-Sale:

Unless the contract includes language requiring you to pay additional amounts if there is an underpayment of taxes, the dealership cannot unilaterally modify the terms of the agreement.

Steps to Take

Review Your Contract:

Look for clauses in your purchase agreement related to taxes or additional charges. If there’s no mention of additional liability for tax underpayments, you likely have no obligation to pay the extra $1,000.

Request Documentation:

Ask the dealership for documentation from Washington State indicating the alleged underpayment of taxes. Ensure this isn’t a mistake or misunderstanding on their part.

Contact Washington State Department of Revenue:

You can confirm directly with the Department of Revenue whether there was a tax underpayment and whether they require you, as the buyer, to pay the difference.

Consult Legal Assistance:

If the dealership insists on payment and you believe you’re not liable, consult an attorney familiar with consumer protection or contract law in Washington State.

Preliminary Conclusion

If your signed contract clearly states that the total amount is $37,700 and does not allow for adjustments, you are likely not legally required to pay the additional $1,000. The dealership’s error does not impose additional obligations on you unless explicitly outlined in your agreement. However, double-check the contract and any communications to ensure there are no clauses that alter this conclusion.

Let me know if you’d like help drafting a response to the dealership or need further clarification!