Pepboys Car Battery Core Dispute
 

Just bought a car battery from Pepboys (socal), and they charged $15 for the core plus sale tax. However, they would only refund the $15 and refused to refund the sale tax when I returned the core.

Their registers are set up to charge sale tax for the core, but not refund it for the core return. I am sure many customers don't know about the sale tax discrepancy.

Not sure if this happens in other states.

I have filed a complaint with Pepboys corp. and see what happen.

Core charges are trade-in allowances included in
the selling price of a part. They are designed to
encourage the return of old parts that can be remanufactured.
Auto parts sellers often include a
core charge when they sell parts such as batteries,
water pumps, brake shoes, and alternators.
Example
A seller sells a battery for $54, which includes
a $7 core charge. If the buyer trades
in his or her old battery, the seller will
give the buyer a $7 credit toward the purchase.
How tax applies
How you calculate the taxable selling price of the
part will depend on whether you are selling a new
or used part, or a reconditioned or rebuilt part.
New or used parts
You are liable for tax on the selling price of the
new or used part, including the core charge. Tax
applies to the core charge because the allowance
for the trade-in is considered part of your “payment”
for the sale.
Example
Selling price of new battery $54.00
(includes a $7 core charge)
Tax ($54 x 7%) 3.78
Trade-in allowance - 7.00
Total $50.78

Don't blame the retailer. This is part of the Tax and Revenue Code. Since a battery exchange lowers the price, it is considered part of the payment. Sorry - you are still obligated to pay the sales tax.

I have no issue paying sale tax. The issue is that when I returned the battery core, they only want to refund the charge for the core which was $15, but not the sale tax I paid for the core.

My sale receipt has 2 separate charges, one for the new battery ($98) and one for the core ($15) and I paid sale tax on both. So why am I not getting the sale tax back when I return the core.


some additional info - I purchased the battery via pepboy.com with the option to pay in the store (store pickup). If I select the store install option for the battery which is free, I only get charged for the new battery ($98) plus sale tax. No additional charge for the core or the core sale tax. So why am I not charged for the sale tax for the core in this case?

The real concern is that their system is set up to charge sale tax for the core and exclude the sale tax refund when customers bring back the core. I am sure many customers are NOT aware of this issue. So who keeps the sale tax in this case? This can be a major issue if they do that with all the stores. Consumer fraud for shortchanging customers?

Update: Pepboys store manager reached out to me this morning and told me his employee was incorrect and gave me back the full refund with sale tax. He apologized and stated that his employees need to have better sale knowledge and customer service.

I am glad they hired this great person as the store manager.

Glad to hear you got your appropriate refund and glad to hear of a business with proper customer service :tup:

:iagree::iagree:

We're taxed out the ying-yang, glad you got it back. My pet peeve is cars are taxed when sold new and each time it changes hands on the used market as well. BS that tax can be collected multiple times on the same object.

FWIW, I've never had good customer service at Pep Boys, never once greeted nor asked if I need help. Always had to tell the person behind the counter to assist me. Simple fix, I take my money to retailers that deserve it.

You're correct.. The 'know it all' attitude and talking down to customers is the norm among the auto part industry.

Fixed

As someone that worked behind the counter at multiple Autozones and Napas I can tell you the number of "know it all" customers far out numbers the few "know it all" employees.

I bought a battery from PepBoys 10 year warranty. After 2 years battery went bad. Took the battery back to PepBoys. They told me come back in an hour while we charge the battery. WTF. Went back and of course of the batter did charge. Your battery is OK. (BS). Had to put the battery back in the car. (this was my VW) took car to dealer and of course the batter was bad. Never buy a battery from PepBoys.

well, the main difference is that the people behind the counter get paid because of the customers.... If they can't provide the proper customer service, perhaps they should seek other job opportunities.

BTW: I wouldn't call them a-hole, but I suppose you'd know better with your experience.