selling car - question about title transfer. What would you do?

[bbkat]

Dude is buying my car for $18k but he says he'll go higher if I fill-out the title transfer as a $1,000 sale price to save him money on sales tax. The $1,000 figure was way too low and I think would raise red flags at the Franchise Tax Board, but $10-12k could be reasonable and save him almost $700 in taxes. Obviously illegal, but to what degree? "Hit-and-run with tons of witnesses" or "rolling a stop sign with no one around"? Who would know?

 

[jadinolf]

Don't even think of doing it.

 

[thedarkwolf]

I've done that on every car I have bought or sold except the 2 I bought at a dealer. Aslong as you make it look somewhat reasonable your not going to get caught but $1k for an $18k car yeah good luck .

 

[syberscott]

Just be honest. What if he doesn't pay all the money for example? He has proof that you sold him the car for $12k and you're outta luck.

 

[Phuz]

I've been told my the MTO that the transfer of sale price doesn't necessarily determine how much your sales tax is.

 

[DainBramaged]

I know that this is just an overused figure of speech but honesty is always the best policy.

 

[notfred]

Every car I've ever bought or sold privately has cost $100. Everyone I know does the same thing and the California DMV has never mentioned it.

And yes, sales tax is a percentage of the selling price.

 

[Thegonagle]

I bought a '94 Saturn for a fair and honest $250, but when I went to transfer the title, they still made me pay sales tax as if it was an $1100 transaction. So yeah, a $18,000 car for $1000 will raise eyebrows, probably a lot more so than my $1100 car for $250. Of course, it does depend upon how strict your state is about collecting tax on private party sales. (I'm in Minnesota.)

Is it possible to just leave the amount blank, and just let him do WTF he wants? Then your concience will be clear. If they call him on it, they won't come down on you, will they?

 

[VirginiaDonkey]

If the DMV thinks the value written is too low, they will asess their own value, then it would be up to him to prove it is only a $1000 car.

don't sweat it, I would just leave the block blank and let him fill it in for what he wants.....like posted above, you are clean, he is screwed

 

[StageLeft]

Originally posted by: notfred
Every car I've ever bought or sold privately has cost $100. Everyone I know does the same thing and the California DMV has never mentioned it.

And yes, sales tax is a percentage of the selling price.

I'm rather amused at the fact that somebody who would report a stranger to their professor for trying to get answers on some homework/test from the internet would actually not be above reckless tax evasion.

---

I suppose it differs all over but in Nova Scotia at least when I bought a used car they taxed me based on the blue book value and not what I paid unfortunately.

 

[imprezawrxwagon]

Originally posted by: thedarkwolf
I've done that on every car I have bought or sold except the 2 I bought at a dealer. Aslong as you make it look somewhat reasonable your not going to get caught but $1k for an $18k car yeah good luck .

it's been a long time since I bought a car from a private seller, but I had thought previously that when one purchases a car from a person and not a dealer, in the same state that one lives in, there is no sales tax to pay. Is that not correct?

 

[thedarkwolf]

Originally posted by: imprezawrxwagon

Originally posted by: thedarkwolf
I've done that on every car I have bought or sold except the 2 I bought at a dealer. Aslong as you make it look somewhat reasonable your not going to get caught but $1k for an $18k car yeah good luck .

it's been a long time since I bought a car from a private seller, but I had thought previously that when one purchases a car from a person and not a dealer, in the same state that one lives in, there is no sales tax to pay. Is that not correct?

Here you pay tax on every car you buy not matter were you bought it from. Somebody already paid taxes on the car when the car was new so I say screw the government. How much money do they need to make off the same damn car?

 

[CTrain]

This paying taxes for a used car is somewhat absurd.

I don't get it. You pay taxes on a new car and when that car get sold, that person get taxed again and it repeats over and over.
This is like double, triple, quad taxation.
Yet, if you trade you car to the dealership, you only have to pay taxes for the difference in price.

I bought a car recently for $9200, the guy left the space blank and I filled in $5000.
So yeah, you should leave the space blank in the title and let him fill it in. You should be in the clear after that point.

Oh let me add. Each state have different law.
I think some will based on the price sold and others will based on the value.
Let him deal with trying to pass an $18K for $1K.
Don't sign any point of sale agreement that you sold it for $1K.
Just tell the guy you will leave the title blank and he can fill it in himself.

 

[Thegonagle]

Originally posted by: CTrain
This paying taxes for a used car is somewhat absurd.

I don't get it. You pay taxes on a new car and when that car get sold, that person get taxed again and it repeats over and over.
This is like double, triple, quad taxation.
Yet, if you trade you car to the dealership, you only have to pay taxes for the difference in price.

I bought a car recently for $9200, the guy left the space blank and I filled in $5000.
So yeah, you should leave the space blank in the title and let him fill it in. You should be in the clear after that point.

Oh let me add. Each state have different law.
I think some will based on the price sold and others will based on the value.
Let him deal with trying to pass an $18K for $1K.
Don't sign any point of sale agreement that you sold it for $1K.
Just tell the guy you will leave the title blank and he can fill it in himself.

Just make sure you get an few hundred extra bucks for your "trouble."

 

[z0mb13]

why cant u put it as a gift??

 

[RossMAN]

I think DMV rules and fees vary by state, which state would you be registering the car in?

Here in Oregon it's about $113 for a new car's TTL.

 

[Ronstang]

Originally posted by: z0mb13
why cant u put it as a gift??

I have done this before and simply had to pay a $25 gift tax fee.

BTW, this thread is a perfect example of how totally fscked up California is in regards to stealing money from it's residents. My brother bought a brand new truck here in TX and paid sales tax as usual. Two years later he moved to CA and they made him pay sales tax on the same truck when he went to get it registered. WTF?!!! You can keep that state and everything in it.......eventually it is going to implode.

 

[Argo]

I sold my old car for $6900 but in the title transfer I've put down only $3000. I told the dude if people start asking questions say that the car was damaged and he had to fix it out of his own pocket. You might try something like that. That puts most of the risk on the buyer.

 

[CTrain]

Originally posted by: RossMAN
I think DMV rules and fees vary by state, which state would you be registering the car in?

Here in Oregon it's about $113 for a new car's TTL.

Now I know why you're such a hot deal Ferrangi, you're in Oregon....no sales tax whatsoever.
Is that about the only good thing about Oregon ???

 

[RossMAN]

Originally posted by: CTrain

Originally posted by: RossMAN
I think DMV rules and fees vary by state, which state would you be registering the car in?

Here in Oregon it's about $113 for a new car's TTL.

Now I know why you're such a hot deal Ferrangi, you're in Oregon....no sales tax whatsoever.
Is that about the only good thing about Oregon ???

There's quite a few reasons why Oregon is great but two area's where we really suck are:
1) Weather
2) Job market

 

[Argo]

Originally posted by: RossMAN

Originally posted by: CTrain

Originally posted by: RossMAN
I think DMV rules and fees vary by state, which state would you be registering the car in?

Here in Oregon it's about $113 for a new car's TTL.

Now I know why you're such a hot deal Ferrangi, you're in Oregon....no sales tax whatsoever.
Is that about the only good thing about Oregon ???

There's quite a few reasons why Oregon is great but two area's where we really suck are:
1) Weather
2) Job market

Don't even talk about the weather, man. We just broke the all time record for amount of rain in the month of june and there's still 9 days left in the month.

 

[Wolverine27]

I think $1000 is way too low too.

 

[bbkat]

Thanks for all the advice. Interesting thoughts. The double taxation theory makes me WANT to declare a lower amount - especially since CA is tripling the vehicle registration fees!

Anyway, I have a tentative deal with another buyer for $18,300 who did not bring up the title transfer amount.

 

[JetsFanatic]

Originally posted by: gotey
If the DMV thinks the value written is too low, they will asess their own value, then it would be up to him to prove it is only a $1000 car.

don't sweat it, I would just leave the block blank and let him fill it in for what he wants.....like posted above, you are clean, he is screwed

I could not have said it better myself :frown:

 

[dirtboy]

If you do this you are committing fraud. If you get caught, you will be the only one to blame and be the one who makes reparations. If you are willing to accept those risks, then do as such.