A BMW dealer here in VA requires buyers to sign the Bill of Sale at time of ordering. I though that's weird - I thought just the "Order Request" is supposed to be signed. Why would I commit to buying before even seeing the car? Also, he ads the "gross receipts tax" of roughly $100 on top of the 3% sales tax. Is that normal?
Any input appreciated.

helmutik

RIPPING YOU OFF...you can put a deposit down (100% refundable) but never sign anything that sells you the car before you have it...and $100 BS tax? Tell them to eat a big one on that.

wow... you guys are jumpy. having you sign a bill of sale is best for both you and the dealership. that way there are no surprises at all. Don't worry, it's not binding... but it is the best way for you to be sure the deal doesn't change when the car comes in. without it you have nothing about the deal in writing... just the pricing information. Of course every state is different, but believe me, you're actually being taken care of by having more paperwork rather than less. As to the tax, I can't say for sure what taxes are in VA, but according to the following link they did everything correctly.

http://www.tax.virginia.gov/site.cfm?alias=salesusetax

until they have all of the money for the car, or you signed the contract (like 6 papers you sign), you don't have to get the car

To Theroyalwe: your link has no info on the "gross receipts tax". Where did you see it? The Bill of sale is a legally binding document. Why should anyone have to sign it without actually seeing the product he or she is supposed to buy? For all others on this board who ordered the vehicle - did you sign the Bill of Sale upfront?

A seller is subject to the sales tax imposed on gross receipts from retail sales. "Retail sales" means sales made for any purpose other than for resale. The tax may also apply to the furnishing of transient accommodations and the lease or rental of personal property.
The seller collects the tax on each sale from the customer. The tax must be separately stated and added to the sales price or charge. The general sales tax rate is 5% (4% state tax and 1% local tax).

it sounds like they are charging you a local tax seperately from the state tax. I really can't say exactly what the taxes are in each state and township, but if it's only 100 on top of the 3% you're obviously doing fine since VA state website says it is supposed to be 5%.

you have to realize also that you don't own the car until the title is put in your name. until you sign those papers you don't own the car and you haven't paid for it yet either. believe me, the dealer can sell the car to someone else if you don't want it. the bill of sale is to get a commitment to buy the car at a given price/deal. it is the best way to put in writing all of the info regarding the deposit, down payment and everything else in the deal. It will protect both parties when the car comes in. it protects you from having the dealer change something about the deal (IE taking away or changing a discount or changing rates [unless 60 days goes by]). It also protects the dealer from having someone say they were quoted a different price or something else and freaking out at delivery forcing them to give it to them anyway. this way everything is written out and signed by both parties.

Thanks for your opinion, Royalwe. As far as the VA sales tax goes, the car sales tax is 3%. the 5% is for other retail products. Anyone else with personal experience signing Bill of Sale when ordering? Just curious.

Helmutik

I was asked to sign a bill of sale as well. With the exception of lease or interest rates, everything was spelled out from the negotiated sales price to the deposit and order-time. I was also asked to sign a non-refundable deposit agreement and the buyers order at time of order. This was explained to me quite bluntly and openly as "A commitment from you (buyer) to take the car as ordered for you and a commitment from us (dealer) to order the car as requested and provide you the terms as agreed." I had no trouble in agreeing to signing both.

Read it over, make sure it outlines your specific deal. not open ended and you sould be fine. If the insist on the tax, have them throw in free window tint or deduct it from the price of the car.

If you don't ask for more, you won't get it!