Lie to the dmv about purchase price?

[Joshallen214]

So i bought a car for 11k i called the dmv to ask for a estimate and i lied and said i bought it for 9k and i had to pay $680 which is still high imo for a car thats been taxed on 2x anyways i went to the website and they have this “Standard Presumptive Value Calculator” and it says my car value is $4,100 can i go to the dmv and say i bought it for 5k to make it more believable and pay less taxes?

 

[nakedfrog]

You can certainly try. Dunno if they'll buy it. This was a private party purchase, I assume?

 

[dullard]

States that I've seen base the tax on the average value, not on the value you paid. This avoids the common situation of lying about value. They've heard the "my friend gave me a great deal" line way too many times. Of course, it will vary from location to location.

I have seen that some states let you provide an appraisal that shows your car is worth less than the average. But, that probably won't gain you more than the cost of the appraisal.

 

[Joshallen214]

You can certainly try. Dunno if they'll buy it. This was a private party purchase, I assume?

Yes private

 

[lxskllr]

In MD tnere's a minimum tax if the sale price gives them too little money. Sale price gets written on the title at time of sale. If that wasn't done, you can write anything in that space.

 

[Joshallen214]

I live in texas and my title doesnt have that “price” section. I mean they say my car is valued at 4100 and i was goint to tell them i paid 5200 to make it a little bit more believable rather than saying i paid wtv they said its worth lol

 

[BoomerD]

Bill of sale?

 

[Joshallen214]

Bill of sale?

Wasnt made

 

[pete6032]

Why did you pay $11,000 for a car with a presumed value near $4,100?

 

[zinfamous]

States that I've seen base the tax on the average value, not on the value you paid. This avoids the common situation of lying about value. They've heard the "my friend gave me a greal deal" line way too many times. Of course, it will vary from location to location.

I have seen that some states let you provide an appraisal that shows your car is worth less than the average. But, that probably won't gain you more than the cost of the appraisal.

this, and also you have to be careful about legitimately buying a car for $1, like absolutely does happen between family, and yes, I've done this before. That's how I learned about these issues. Still, it's OK to go ahead and pay a dollar because you're still out better than you would have been if you also had to pay the $4k that the car is valued at, on top of the taxes that the state will charge you, anyway. To me, this is the primary reason that they default to to the implied value for calculating tax.

 

[zinfamous]

Why did you pay $11,000 for a car with a presumed value near $4,100?

Good question, but what OP didn't tell you about was the kilo of coke that came with the car.

 

[Joshallen214]

Why did you pay $11,000 for a car with a presumed value near $4,100?

If i could find a 2002 corvette with 40k original miles ill buy all of them for 4100 (for some reason thats what the dmv says the car is worth)

 

[Joshallen214]

Good question, but what OP didn't tell you about was the kilo of coke that came with the car.

Hahaha 😂 no comment

 

[Dr. Detroit]

Bought a car in TX for $20K, drove it back to CA, then smogged and registered it. I had a bill of sale.

CA DMV never cared to look at the Bill of Sale , they told me to fill out the forms and from me filling in the the purchase price they would factor the sales tax. I was honest as I expected them to review the bill of sale.

I really dont think DMV employees care enough to check so long as its not an absurdly low value like $100, $500 or $1000.

 

[Joshallen214]

Bought a car in TX for $20K, drove it back to CA, then smogged and registered it. I had a bill of sale.

CA DMV never cared to look at the Bill of Sale , they told me to fill out the forms and from me filling in the the purchase price they would factor the sales tax. I was honest as I expected them to review the bill of sale.

I really dont think DMV employees care enough to check so long as its not an absurdly low value like $100, $500 or $1000.

Yea i kinda figured i just dont know what to do because kelley blue book says the car is worth 11k-14k but my dmv has this calculator that you enter your vin and it shows you the presumptive value of your car and its showing “4,100” lol

 

[Captante]

States that I've seen base the tax on the average value, not on the value you paid. This avoids the common situation of lying about value. They've heard the "my friend gave me a great deal" line way too many times. Of course, it will vary from location to location.

Can't speak for every state but Connecticut uses this method.

Guess they got tired of all the "great deals".

 

[BoomerD]

Wasnt made

How can you prove you actually bought it?

 

[Hail The Brain Slug]

How can you prove you actually bought it?

How is a bill of sale any more meaningful proof than an owner-signed title alone? Both a bill of sale and the owner's signature could be easily faked.

This is why it doesn't matter. If you've got the title, you effectively own the car.

Also why I go apeshit on people I know that keep the title in the glovebox.

 

[BoomerD]

How is a bill of sale any more meaningful proof than an owner-signed title alone? Both a bill of sale and the owner's signature could be easily faked.

This is why it doesn't matter. If you've got the title, you effectively own the car.

Also why I go apeshit on people I know that keep the title in the glovebox.

It's NOT any more meaningful than a signed title...but it DOES prove to DMV that you bought it...and for what price. Sure, a signed title (if everyone does their part right) can prove ownership...I get that, but a bill of sale with it carries a bit more weight at the DMV.

And you're right...never, EVER keep the title in the car. Keep it someplace safe.

 

[nakedfrog]

WTF, what kind of chump keeps the title in the car?

 

[JulesMaximus]

Josh Allen? You a Bills fan?

 

[Hail The Brain Slug]

WTF, what kind of chump keeps the title in the car?

Some people can't read the title where it says to not keep it in the vehicle.

Some people think it's supposed to be in the car like the registration and proof of insurance.

 

[kn51]

So you folks don't live in states where you just write in "gift" for the purchase price?

 

[repoman0]

I bought an older car recently that is similarly impossible to acquire at the fake NADA value. The seller asked if I wanted that price on the bill of sale but I asked for the real value both because I don’t like doing anything sketchy for my security clearance, and more relevant to the thread I wanted something additional to show insurance in the event that it’s totaled. Maybe not relevant compared to the many listings and sold vehicles on BaT that show NADA off by a factor of two or more but something to consider.

 

[nakedfrog]

I bought an older car recently that is similarly impossible to acquire at the fake NADA value. The seller asked if I wanted that price on the bill of sale but I asked for the real value both because I don’t like doing anything sketchy for my security clearance, and more relevant to the thread I wanted something additional to show insurance in the event that it’s totaled. Maybe not relevant compared to the many listings and sold vehicles on BaT that show NADA off by a factor of two or more but something to consider.

I don't know that the bill of sale will be adequate for insurance if it's totalled with regular insurance, but could be supporting evidence if you want to do an agreed value coverage thing.