Used car price on bill of sale

Common resources like Edmunds or KBB provide pricing based on trade in, private party and retail. All considering the condition of the vehicle.

I've bought several vehicles in a private transaction at a trade in value (literally) therefore it's easy to document.

In Fl you can 'give' a vehicle to a family member with no taxes collected.

 

Yes they arekilling us by finding a thousand ways to cut their taxes.

 

you were otherwise busy (i think)

 

The Tacoma I’m looking at is priced at 27,500 lowest kbb in terrible shape on trade-in is like 21,500. I’m thinking about putting 15,000 on the bill of sale. It will save me about 1,000. As long as the seller is cool with it I don’t see there being a problem.

 

it all theoretical my friend.

 

For some reason I always forget to fill in that space when I sell a car.

 

And instead of committing tax fraud behind closed doors (I don't condone your actions, but you do you), why post a thread about committing tax fraud and asking about committing tax fraud?

 

So, an opinion based on experience:

County Treasurers would call our installment loan department (banker) every once in a while to ask for ball park loan amount against a newly purchased vehicle in private transactions. They knew which bank to contact as lien is noted on the title. We wouldn't (couldn't) disclose, but they'd tell us the purchase price disclosed on the title registration........and listen pretty closely for any reaction. Clear they had their doubts and were fishing for a disproportionate loan against a "junker" car. This is in Iowa.

Know from a couple insurance agents that they would check with to see the insured value on some private transaction cars. Which lead to:

One specific case I'm familiar with that a County did pursue against a guy that claimed a few thousand dollar purchase price on a Chevy tri-five that he paid 6 figures for.

Be careful out there folks. See Kwikvette's post above (#30) if not following any of this.

 

I/my dad have done it plenty of times before when buying used motorcycles, boats, trailers, and the ATVs he bought when I was young. Never with a new car or new “toy” obviously.

 

Paying cash....

 

They're going to go with KBB at the licensing office, you'll most likely pay the tax on 27,500 I'm afraid

 

Not sure if that's true. I sold a car to someone in Texas and he told me he paid taxes on the book value.

 

In CA, you pay taxes based on what you paid for the vehicle.

However, if the vehicle was a gift, you pay taxes on the "value" you list on the title/bill of sale...which anyone can make up.

 

Lol.

every vehicle I’ve owned has been second hand.. minus my Tacoma...

Private sale always had a way lower price on the bill of sale to dodge taxes as much as possible.

come on people. The government already fucks us enough

 

How much to retain an attorney if you get caught?

If you were really going to do it, I do not see you posting on the forum the intent to fraud the guberment.
Nobody is that dumb.

 

Not anymore and hasn’t been for 10+ years. You can put down you paid $100, they’ll look up “average retail, then you’ll be taxed on that amount.
My dad literally gave my friend a POS car because my friend was in a desperate situation. My friend had to pay $300 in taxes because the DMV went off “average retail”.
Taxing a vehicle, or ANYTHING for that matter, more than once (the original sale) is a crock of shit and is legal theft.
Remember when this country had balls and that whole tea in the harbor thing? Yeah, let’s bring that country back!

 

No tax on a private sale in Nevada and in fact if you are trading in at a dlr you get a sales tax credit for the trade amount.

 

In GA it doesn't matter what price is on the bill of sale. The tag office looks up the vehicles value and applies that number to determine how much tax you pay. This is for private sales only.

If you buy through a dealer you can figure the sales tax into the purchase price and skip going to the tag office altogether. And it is a LOT easier for the dealer to work with the numbers to lower the amount of taxes you pay. You only pay tax on the difference between your trade-in and the new/newer vehicle you buy. It isn't hard for them to show that your trade-in was worth a lot more than they actually gave you on the paperwork.

Up until a few years ago there was no tax on private sales. But the number of unofficial used car dealers was really getting out of hand. People were parking a dozen cars on their property with for sale signs on them and claiming private sales. Lots of crooked dealers and problems. Charging tax on private sales shut these folks down and overall it was for the good. Most people are paying less on vehicle taxes now than before with the new system

We used to pay 7% at the time of the sale. Then we had to pay a yearly ad-valorem tax that amounted to about 1% for each vehicle. With 3 vehicles, a travel trailer and a utility trailer in the driveway that added up to $500+/year for me. When they started taxing private sales we now pay 7.5% at the time of the sale, but there is no longer a yearly ad-valorem tax. I'm paying a lot less and most everyone seems happy. Except the guys running illegal car lots.

 

So if we lie to the government its fraud and a felony, but if they lie to us it’s just politics. Got it. Sounds fair ‍♂️