How much do dealers pay in taxes when they buy a car at an auction?

Home Forums Buying at Auction How much do dealers pay in taxes when they buy a car at an auction?

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  • #710
    Pamela Orourke
    Participant

    I know a guy that has a dealer’s license and he offered to take me to the auction so I can get the car I wanted for cheap….the car I ended up buying cost around $11,000….However, he (the guy with the dealer’s license) told me that the tax rate on my purchase is 10%. He is now requiring me to pay around $1100 (for the taxes) on top of the 500 bucks I gave him for taking me to the auction : (

    #713
    Denise Jantz
    Participant

    This question about “How much do dealers … ” was originally asked on Yahoo! Answers Australia ???

    There is no state or county tax on auctions in Alabama as far as I know. (I was a dealer for 15+ years).

    Some cities adopt an auction fee but that’s usually included in the buyer or sellers fee.

    Licensed re-sellers, of most everything, do not pay the typical sales tax that end users pay.

    You do have to pay for your license, your mandatory garage liability insurance, your lot, your sign and your bond if you are a dealer.

    And yes, visible tattoos CAN prevent you from being hired and some places.

    If I was hiring 1 person and had 2 otherwise identical candidate, Id hire the one withOUT the tat.

    Except maybe at a head shop, a quick mart,and places that cant find enough help. They tend to hire anyone because they need the help.

    Walmart will hire with tattoos, but you have to pass a drug test.

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