BLT

Hey guys!

So this is totally random outside W203 discussions, and I doubt I'm buying a car anytime soon, but I've always been intrigued by this, and I was wondering what you guy's thoughts were on private party sales.

Basically, what's preventing you from buying a car from someone and declaring it to the DMV as being either a gift (no money exchanged), or under-declaring how much you pay for the vehicle, does dodging taxes for both parties?

Is that advisable, or does that affect insurance or any other legal value? (I.e. if you wreck your car, insurance only gives you how much you declared it to be)

What do you guys think? I've always been curious about this.

Thanks!

hcoronado

I've done it with my sister and added on the pink slip gift.
did it on another car and the guy paid me the price i was asking and requested to type a much lower price on the pink slip "but not after having him sign an affidavit" (for my personal safety).

have not had any problems at all.

clkwork

integrity?

MW_ATL

And is it really worth all the hassle for a couple of hundred bucks?

jtalbert

No matter what you pay for the car. Get a written receipt for the price you paid. I bought a car from a friend a few years ago. Paid him $500 for it. It had some problems. When I went to register it with the DMV I did not have a receipt. The cars book value was $2300 and I had to pay taxes on that value. So. If you were so inclined to do this. You would have to get the seller to agree on a "price" and sign it.

BLT

All valid points. I was just curious about the theory behind it. Thanks!

eesjunin

in Mass, when registering it, and correct me if i am wrong since i havent done this in a while, they make you pay tax on the KBB value regardless of what you paid for it.

Moreira_C230

You are correct. Regardless of what you pay, or if you don't pay at all. The tax is the given percent of the KBB value of the car.

OneOfaKindTrini

That's fraud if money is received/given from the transaction?

anonymousmoose

Good answer. I prefer to do the correct thing. It comes down to honour.

MBFLO

depending on the state .. the only thing it will determine is how much you pay when you goto title the car .. In my state for example . you list sale price $10,000 will be $600 in taxes to title the car ... in my case the seller left the sale price blank and I didnt realize it till i got home with the car and filled it in before i got to the DMV . of course though i didnt put $10k and saved about $400 in title fees
but to register my car it still came back as a $70k category even though its 10 yrs old and registrations cost almost $400 so intergrity or faith or whatever .. that differnce in written sale price just paid for my registration .lol

If your a millionaire and like to throw money away by all means write the real price , if your a hard working man just write whatever you want and save the couple hundred buks

vjsilva

There is no honor in honorably handing money over to dishonorable people (i.e politicians).

samaritrey

now now lets not talk politics that is when we all get banned.

OneOfaKindTrini

I think he is suggesting Politicians take bribes . Why would he think something like that