Can dealer cover tax and tag expenses in used car negotiations... please help!?

Seriously considering purchasing a used 07 Mazda3i for 14,800. The problem is that my financing won't cover the tax and tags. i will be putting around 3500 or so down, depending on the final price. My question is, in the negotiations with the dealership, can I offer to pay the 14,800 and have them cover the cost of the sales tax and other fees such as registration and what have you? I was told that might by illegal on their part?

It sounds like the lender has capped the amount financed which is preventing them from adding the taxes. I would see if the dealer will include those fees for the 14800. If they agree to this, make sure they put it on a "We Owe" form and get a copy of it. There are only 3 reasons why the finance company has capped the amount. 1. The dealer is maximizing the amount of the loan to value including your down payment which means they have room to pay your taxes. 2. Your credit is requiring the down payment and limiting the amount financed, or 3. The the lender has capped the payment due to your income. If 2. & 3. are not the issue and the dealer will not include the taxes, go to another dealer. Explain the deal you were receiving and see if they can help you. Source(s): Director of Finance 15yrs

They will just work it into the sale price of the car, that's how most do it, you don't ever pay that separately unless you want to
tax title and licence is the purchasers responsiblity . . but some will finance the tax title and license fees along with the car. .
See if you can get approved with only $2,000 - $2,500 down and use the remaining money to pay those fees. You can usually roll vehicle sales tax into the loan, so I would figure out how much those fees will cost you and have the dealership get you approved with a lesser amount down. It will increase your payment by about $20 per month depending on your loan term. I hope this helps. You can email me if you have more questions. Good Luck!
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