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The same reason you pay sales tax on a car you finance. Just because you are paying for the phone over 2 years does not mean that you get to defer sales tax.
by jmj42 14y ago
The same reason you pay sales tax on a car you finance. Just because you are paying for the phone over 2 years does not mean that you get to defer sales tax.
- betterunix 14y ago(1) You can sell a car you financed to someone else, even if they buy their gas from a different gas station. (2) You are not taking out a loan on the phone. You are paying a discounted price for it in exchange for signing a contract for service. You bought the phone when you paid the sales tax.
- onedognight 14y ago> (1) You can sell a car you financed to someone else, even if they buy their gas from a different gas station. Yes, but you must pay off your loan (the early termination fee) first and then you own the car and can sell it (i.e. as Obama suggested, after your contract ends).
- betterunix 14y agoOK, but you are ignoring the second point: the cell phone company is not issuing a loan to you, they are selling the phone to you at a discount. It is a loss leader strategy, not a financing program.