Canceling Maintenance Agreement when it is part of a lease

So I got suckered into a Security Plus maintenance agreement since the finance guy at the dealership told me the annual battery check cost $200, so I'd be saving money by getting the Security Plus plan...

Anyways, I have it canceled, but my issue is how it is credited back to the lease. The total amount due for my lease doesn't decrease (lowering my monthly amount), but instead the refund goes straight as payments. My issue with this is that I am charged sales tax on the total amount due over the life of the lease, so I will still be paying sales tax on my security plus plan even though it was refunded. I called Nissan Finance, and they pretty much told me there is nothing they can do.

Do I really have to pay sales tax on a maintenance plan that was refunded? I feel doubly screwed by this since the dealership lied to me to get me to sign up for it. Thanks.

Also, isn't it illegal to charge sales tax on the maintenance agreement? https://www.boe.ca.gov/formspubs/pub119/" onclick="window.open(this.href);return false;

Edit 2- Hmmm… after reading this, I don't think they should have charged sales tax… https://www.boe.ca.gov/pdf/pub46.pdf" onclick="window.open(this.href);return false;

Optional charges. Additional charges are not included in taxable rental receipts when the lessee is not obligated under the lease contract to use services provided by the lessor. Such services include equipment maintenance, warranty, assembly, reassembly, disassembly, etc.

The general rules regarding the application of tax to leases apply to vehicle leases.

Anyone know about maintenance agreements, sales tax, and leases? Thanks!

ya' the trolls at my dealership tried to sell me something like this.So, lets se the lease amount was 139 per month . the service crap thingy on the lease was about 130 per month .After laughing my head off the guy seemed confused.LOOSER.

lol. same thing happened to me. i didn't outright laugh but i had to stop myself from laughing.

the funniest was watching the finance guy's face go from being jovial down to shock when i told him to take it off. he gave me this perplexed looked like i was the craziest guy in the world and he said "just out of curiosity, why would you not want this?"

then i laughed...asked him what kind of maintenance he expected for the car. he couldn't come up with anything except for tire rotations and battery maintenance check.

i laughed again and told him that i rotate my own tires and that the battery maintenance check after year 1 is free anyway (i have a 2 year lease).

he lied and said that the battery maintenance is really expensive and not included.

i just laughed and said i don't want the maintenance plan.

these finance guys all must go to the same training.

when i got my last ICE car, the finance guy did the same exact thing. he tried to sell me a tire and wheel maintenance plan for $2k and it was almost word for word the same spiel.

i have another friend who told the finance guy "i thought you guys are selling me a reliable car...at least that's what the sales guy told me. if it's so unreliable that i need to buy an extended warranty because the car is going to fall apart, let's call this deal off..."

and that was enough to shut the guy up.

I don't think they should have charged sales tax

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I can't comment about your state, but I've seen dealerships overcharge sales tax, then I assume they forward the correct amount and pocket the difference.


Keep in mind that the so-called finance manager is paid only by commission. If he doesn't sell you anything or steal anything from you, he doesn't get a paycheck.

KLS said:

Keep in mind that the so-called finance manager is paid only by commission. If he doesn't sell you anything or steal anything from you, he doesn't get a paycheck.

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While I feel for his predicament, it's kinda not my problem...

RVD.