Do you pay sales on tax when buying a used car from a private seller?

[platinumike]

My options right now are a 2005 4 cylinder elantra(14k miles) from hertz @ $10,295+tax. I found another a private seller who is selling a 2005 hyundai sonata gls(9k miles)@ $12,500. If i dont have to pay tax on the car the private seller is selling then its pretty much the same price as hertz. Whadya guys think?

 

[phreakah]

in CA you have to pay tax to the DMV

however, in my experience, when the seller writes you a receipt that you take to the DMV, you typically ask him/her to write a much lower selling price so you dont have to pay as much tax

 

[blackdogdeek]

Originally posted by: phreakah
in CA you have to pay tax to the DMV

however, in my experience, when the seller writes you a receipt that you take to the DMV, you typically ask him/her to write a much lower seling price you dont have to pay as much tax

same in NY iirc

 

[sourceninja]

in Indiana when you go to the DMV with the title, they will make you pay tax on the sale price listed on the title.

So we write it as 1000.00 and pay a lot less in tax 🙂

 

[GasX]

Here in NJ, you cannot register your car until you can prove you paid tax on it. In a private party sale, there are often two receipts. One will have a lower price you can show the DMV to save yourself some cash...

 

[Maximus96]

my friend tells me that if the amount is too low, ca DMV deems it as a gift and make you pay more tax. i don't know it thats true or not.

 

[platinumike]

ok, so this is something that is agreed on between both parties. If i ask the guy to lower the price so i pay the same price he is asking when tax is included, that means he is making less money. Im in florida, and right now iam contacting him by phone. Is this a question i could ask him over the phone?

 

[shot]

Originally posted by: sourceninja
in Indiana when you go to the DMV with the title, they will make you pay tax on the sale price listed on the title.

So we write it as 1000.00 and pay a lot less in tax 🙂

The thing about that is if you write an amount that is to low the BMV will go with bluebook value. So dont make it insanely low.

 

[GasX]

Originally posted by: platinumike
ok, so this is something that is agreed on between both parties. If i ask the guy to lower the price so i pay the same price he is asking when tax is included, that means he is making less money. Im in florida, and right now iam contacting him by phone. Is this a question i could ask him over the phone?

That's all part of the negotiating process. It never hurts to ask. You haven't negotiated well if you never hear no...

 

[phreakah]

Originally posted by: shot

Originally posted by: sourceninja
in Indiana when you go to the DMV with the title, they will make you pay tax on the sale price listed on the title.

So we write it as 1000.00 and pay a lot less in tax 🙂

The thing about that is if you write an amount that is to low the BMV will go with bluebook value. So dont make it insanely low.

not necessarily

you can say a family member sold it to you for only $1000 since it was a semi-gift or he didnt need the car anymore and wanted to help you out

 

[jeffeh]

In Canada you pay tax when you license the car and they calculate the tax not on what you bought it for but from a black book of car values kinda dumb but thats the gvt for ya

 

[phreakah]

Originally posted by: platinumike
ok, so this is something that is agreed on between both parties. If i ask the guy to lower the price so i pay the same price he is asking when tax is included, that means he is making less money. Im in florida, and right now iam contacting him by phone. Is this a question i could ask him over the phone?

never hurts to try

 

[DrPizza]

I didn't think there was sales tax in Florida. Maybe I'm thinking of something else.
But, like the others have said, here in NY you pay the tax when you go to register it at the DMV. If the receipt shows an unusually low amount (say $200 for a 2004 car in good condition), then you're going to end up paying tax on the book value.

 

[exilera]

Originally posted by: phreakah
in CA you have to pay tax to the DMV

however, in my experience, when the seller writes you a receipt that you take to the DMV, you typically ask him/her to write a much lower selling price so you dont have to pay as much tax

Most sellers won't do that. It's a crime, tax evasion and all that crap. Moreover, if the seller has the car financed and is using the payment to pay off the finance, there's no way they can adjust the true sale price on the Bill of Sale.

Edited for spelling.

 

[Nitemare]

Originally posted by: exilera

Originally posted by: phreakah
in CA you have to pay tax to the DMV

however, in my experience, when the seller writes you a receipt that you take to the DMV, you typically ask him/her to write a much lower selling price so you dont have to pay as much tax

Most sellers won't do that. It's a crime, tax evasion and all that crap. Moreover, if the seller has the car financed and is using the payment to pay off the finance, there's no way they can adjust the true sale price on the Bill of Sale.

Edited for spelling.

Yup, only works if you are paying cash

 

[exilera]

Originally posted by: Nitemare

Originally posted by: exilera

Originally posted by: phreakah
in CA you have to pay tax to the DMV

however, in my experience, when the seller writes you a receipt that you take to the DMV, you typically ask him/her to write a much lower selling price so you dont have to pay as much tax

Most sellers won't do that. It's a crime, tax evasion and all that crap. Moreover, if the seller has the car financed and is using the payment to pay off the finance, there's no way they can adjust the true sale price on the Bill of Sale.

Edited for spelling.

Yup, only works if you are paying cash

Yea, so the majority of buyers won't be able to swindle the MVA out of their fee.

It sucks, I know. We just bought a used '02 BMW for 20k, and had to pay $1000 tax. It's still cheaper than what you'd pay in tax at a dealership, however. You best just suck it up and pay the fee to avoid problems.

 

[phreakah]

Originally posted by: exilera

Originally posted by: Nitemare

Originally posted by: exilera

Originally posted by: phreakah
in CA you have to pay tax to the DMV

however, in my experience, when the seller writes you a receipt that you take to the DMV, you typically ask him/her to write a much lower selling price so you dont have to pay as much tax

Most sellers won't do that. It's a crime, tax evasion and all that crap. Moreover, if the seller has the car financed and is using the payment to pay off the finance, there's no way they can adjust the true sale price on the Bill of Sale.

Edited for spelling.

Yup, only works if you are paying cash

Yea, so the majority of buyers won't be able to swindle the MVA out of their fee.

It sucks, I know. We just bought a used '02 BMW for 20k, and had to pay $1000 tax. It's still cheaper than what you'd pay in tax at a dealership, however. You best just suck it up and pay the fee to avoid problems.

I agree with you if you are financing the used car. my experience has only been paying with cash, which is where my advice was coming from.

 

[Kelemvor]

You write what you paid for the car on the title and pay taxes at the DMV. If the seller writes a lower number you pay less but risk going to jail and getting huge fines if they find out. And Yes, they do look at the info becaue if you put down $1 for a car, you'll be contacted to prove that that's all you paid and you get in big trouble.

 

[FoBoT]

yes