I suspect that adding too many extras at the time of purchase puts the purchase price above the point at which luxury tax has to be paid.
Just a guess.
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I suspect that adding too many extras at the time of purchase puts the purchase price above the point at which luxury tax has to be paid.
Just a guess.
Correct.
If the total purchase price on the invoice is over the threshold (just over $57k) then LCT applies.
If you can bring the total in under this amount, it means that LCT does not apply, so by leaving off things like tinting etc, this can be achieved.
Some dealers are quite happy to arrange things like tinting for you, and have the tinting company bill you direct.
If you get options fitted by the dealer (e.g. tinting) prior to delivery or fitted up to a month after the purchase of the vehicle (I think???) then the price of these options have to be included when calculating LCT.
That is why cars that hover on or over the threshold of the tax are often delivered option-poor, but then get kitted up a month or two later.
Regards, Ron
Stumbled on this old thread and it has brought up an interesting topic - that being Luxury Car Tax.
If I buy $2,000 of extras, and assuming I've already reached/exceeded the LCT threshold, then I am paying LCT on that $2,000. Is this correct?
So best to do all options possible after purchase eg tow hitches, window tinting, floor mats, seat covers, roof racks etc. Could be quite a saving..
And as said somewhere above, if you are close to the LCT threshold then you would be even crazier to add the options. LCT threshold is $59,133 currently btw. Good luck keeping your D4 under this!
Mines way beyond the rules :D
And wouldn't have it any other way out here!!
Attachment 55875
RACV obviously spend to much time indoors and not enough driving in sun.
Good tint greatly reduces load on the A/C to keep the vehicle cool in blazing heat...
And less damage to interior fabrics as a bonus!