Buying a used car (from a private party)

[illusion88]

So I am in the market for a new (used) car. I have about $5000 to spend so it's not going to be anything fancy. What other costs would I incur? What should I expect for tax, registration, anything else? What else am I missing?

This is in Salt Lake City, Utah if that helps any. It's been a while since I have done this so I am a bit unfamiliar with the process.

 

[xSauronx]

call your dmv/license plate bureau for tax and registration info. figure a couple hundred bucks at least to fix things that either the seller didnt mention, or didnt know about, or thats going to need work in the next 3 months

 

[purbeast0]

try to see if the person you buy it from will put a lower price than you actually pay for it on the bill of sale so that your sales tax won't be as high when you go to register it.

when i got my new (used) car this past new years, I paid close to $700 when I went to the DMV to register it and get tags for it.

 

[slimrhcp]

Originally posted by: purbeast0
try to see if the person you buy it from will put a lower price than you actually pay for it on the bill of sale so that your sales tax won't be as high when you go to register it.

when i got my new (used) car this past new years, I paid close to $700 when I went to the DMV to register it and get tags for it.

Damn! $700 for tags, title, and reg? In MD it's only $243 for the heaviest class of passenger vehicles.

 

[radioouman]

You'll have to pay taxes at your DMV.

 

[KK]

Why would you have to pay sales tax on a used auto? You are buying from a private seller and not a dealer, therefore I would think there would be no sales tax. It'd should be like if you were buying used workout equipment from someone, why would you pay taxes on that?

 

[feralkid]

Originally posted by: KK
Why would you have to pay sales tax on a used auto? You are buying from a private seller and not a dealer, therefore I would think there would be no sales tax. It'd should be like if you were buying used workout equipment from someone, why would you pay taxes on that?

Good point, but unfortunately most states make you pay it.

 

[KK]

Originally posted by: feralkid

Originally posted by: KK
Why would you have to pay sales tax on a used auto? You are buying from a private seller and not a dealer, therefore I would think there would be no sales tax. It'd should be like if you were buying used workout equipment from someone, why would you pay taxes on that?

Good point, but unfortunately most states make you pay it.

Yeah, but it seems like double taxation. damn government.

 

[Falloutboy]

Originally posted by: feralkid

Originally posted by: KK
Why would you have to pay sales tax on a used auto? You are buying from a private seller and not a dealer, therefore I would think there would be no sales tax. It'd should be like if you were buying used workout equipment from someone, why would you pay taxes on that?

Good point, but unfortunately most states make you pay it.

yup I beleave techinically if the states wanted to be anal they could make you pay sales tax on pretty much any sale for goods even private sales. its just to much work for them to enforce it so they don't

 

[KK]

Here's some info on your situation.

 

[purbeast0]

Originally posted by: slimrhcp

Originally posted by: purbeast0
try to see if the person you buy it from will put a lower price than you actually pay for it on the bill of sale so that your sales tax won't be as high when you go to register it.

when i got my new (used) car this past new years, I paid close to $700 when I went to the DMV to register it and get tags for it.

Damn! $700 for tags, title, and reg? In MD it's only $243 for the heaviest class of passenger vehicles.

I'm in Maryland.

Sales tax is 5%. Do the math.

5% of 15K = $750 ... but it didn't say $15K on the bill of sales

You pay sales tax on a used car when you go to register it, hence why it was so much

 

[illusion88]

Originally posted by: xSauronx
call your dmv/license plate bureau for tax and registration info. figure a couple hundred bucks at least to fix things that either the seller didnt mention, or didnt know about, or thats going to need work in the next 3 months

Sweet. So I should probably get a car that is $4000 and have the rest for getting some minor repairs and tax, title and registration

 

[MikeyIs4Dcats]

also, be aware that if the previous owner had back taxes, they may block you from registering it. Call your DMV or Department of Revenue and make sure it is clear and paid up to date.

 

[Kelemvor]

Ask the person to sell you a paperclip for $3999 and throw in the car for $1. Then you can claim the lower price on the tital and it's be mostly true. If you buy it for $4000 and he writes $400 on the title and that's what you claim at the DMV, they will sometimes research it and if he flips and says yeah he sold it for $4000, then you're going to be in big trouble.

 

[purbeast0]

oh yah, also make sure you get the lein release (if they are paying off the loan w/the $4K you are giving them, if they haven't already paid it off) or the actual title from them.

the 15K I gave the chick I bought the car from went towards her paying the car off from the bank. Well it took the bank about 3 weeks to get the lein release to her, so my car was sitting for like a month before I could register it. It really sucked.

 

[kami333]

Last year when I got my "new" car registered it came out to be about $300 for everything, $45 for the safety and emissions, about $100 for the registration (age based fee was the big one, for a 2000 is was $80) and about $150 for the sales tax. This was in SL County for a $2500 car.

 

[Dunbar]

Originally posted by: purbeast0
the 15K I gave the chick I bought the car from went towards her paying the car off from the bank. Well it took the bank about 3 weeks to get the lein release to her, so my car was sitting for like a month before I could register it. It really sucked.

As long as you have a bill of sale and proof of payment you should be fine. I bought a leased car and drove it the same day we transferred ownership. My credit union paid Honda Finance directly for the payoff amount and wrote a separate check to the seller for the remaining difference. I never saw the title until I paid off the car.

 

[smack Down]

Originally posted by: Kelemvor
Ask the person to sell you a paperclip for $3999 and throw in the car for $1. Then you can claim the lower price on the tital and it's be mostly true. If you buy it for $4000 and he writes $400 on the title and that's what you claim at the DMV, they will sometimes research it and if he flips and says yeah he sold it for $4000, then you're going to be in big trouble.

I know VT, doesn't care what price you paid for the car. They assume you are lying and make you pay sales tax based on the blue book value of the car. I'm not sure if that is standard or not?

 

[Zenmervolt]

Originally posted by: KK
Why would you have to pay sales tax on a used auto? You are buying from a private seller and not a dealer, therefore I would think there would be no sales tax. It'd should be like if you were buying used workout equipment from someone, why would you pay taxes on that?

Legally, you're supposed to pay taxes on workout equipment too.

Regardless of who you buy from, you will be required to pay sales tax on the vehicle.

To those saying to pay $3,999 for a paper clip and $1 for the car, the DMV WILL tax you on "fair market value" in most states. This means that if you show up with a bill of sale that says you bought the car for $1 (or any other absurdly low amount), the DMV will look up the car in something similar to a NADA book, and tax you on whatever value shows in that book. They will consult that book for any "unreasonable" sales numbers shown on the title.

ZV

 

[V00DOO]

I just bought an used car from a private party 3 weeks ago. I had to pay sales tax and $19 for new license plates.

 

[PELarson]

Originally posted by: illusion88
So I am in the market for a new (used) car. I have about $5000 to spend so it's not going to be anything fancy. What other costs would I incur? What should I expect for tax, registration, anything else? What else am I missing?

This is in Salt Lake City, Utah if that helps any. It's been a while since I have done this so I am a bit unfamiliar with the process.

Well there is the cost of having a mechanic, who you trust, check the car out before you buy it.

 

[OpenThirdEye]

Originally posted by: slimrhcp

Originally posted by: purbeast0
try to see if the person you buy it from will put a lower price than you actually pay for it on the bill of sale so that your sales tax won't be as high when you go to register it.

when i got my new (used) car this past new years, I paid close to $700 when I went to the DMV to register it and get tags for it.

Damn! $700 for tags, title, and reg? In MD it's only $243 for the heaviest class of passenger vehicles.

Yeah...unless you move from another state, had purchased a car from another state, and rolled all taxes into that payment. I paid $1800 for my plates in MD...and the Gaithersburg DMV sucks ass to boot!