Can a car dealership hold my tags if they forgot to add the sales tax on the contract?

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Can a car dealership hold my tags if they forgot to add the sales tax on the contract?

I purchased a car a month ago and somehow the sales tax was not added. After the problem was realized, the salesman asked me to bring them $1000 that I don’t have. Now they’re holding my license plates and the car is already financed. I’ve made a payment on the car and can’t drive it because the temporary tag has expired. What are my options?

Asked on August 12, 2011 Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you purchased a vehicle from a dealership and it made a unilateral mistake in the purchase contract that you signed with respect to not adding on the sales tax and you were not aware of it until afterwards, the dealership needs to absorb the sales tax from its profit margin and immediately turn over to you your issued license plates for the vehicle.

I would write the dealership a letter to this effect giving it a certain period of time to turn over your plates. Keep a copy of the letter for future reference and need. If the time runs with no presentation of your license plates, I would consult with an attorney who practices law in the automotive field.


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