Tax question on used car purchase

[toolboxolio]

Will I save money on tax buying a used car from a private seller? Or will I just end up handing 6% (FL sales tax) to the tag office when I provide the bill of sale?

 

[compuwiz1]

If both of you are honest about the sale price written on the bill of sale, the tax would be the same, as if you bought it at a dealer. Be very careful. Many DMV's are running reports that give them a cars value. So, let's say you buy a car from mr.x, and you pay him $14k, but he writes you a receipt for $5k, you could be charged for submitting fraudulent information. Whatever you thought you saved could suddenly become much more.

 

[toolboxolio]

dang.... I thought so.

Isn't this highway robbery? taxing on a car that's been taxed to all hell? govt must makes thousands more of a single car with multiple owners.

 

[daveymark]

it depends on the state, and year of the vehicle. for instance, in illinois a year 2000 vehicle for $7k means $90 tax from a private party, and $400 tax from a dealer

 

[Lonyo]

Originally posted by: toolboxolio
dang.... I thought so.

Isn't this highway robbery? taxing on a car that's been taxed to all hell? govt must makes thousands more of a single car with multiple owners.

They'd make more from a new car

 

[compuwiz1]

Originally posted by: Lonyo

Originally posted by: toolboxolio
dang.... I thought so.

Isn't this highway robbery? taxing on a car that's been taxed to all hell? govt must makes thousands more of a single car with multiple owners.

They'd make more from a new car

Exactly what totally pisses me off. Between tax, title and license, here in CA, if we sell a $50k vehicle, this will work out to about $4600 in fees. Normally, we don't make that much on the sale! The vehicle taxation situation is unjust for the dealer. :|