Used car price on bill of sale

Do you guys usually say the exact number you paid for a used car, or do you say it was a lower price in order to pay less sales tax. This is obviously only for private sales, since no dealer will adjust the price. My opinion is that it’s crazy to pay the sales tax over and over again and again on the same vehicle. Also if you have fibbed a little on the bill of sale how much is too much and what can they actually do to prove your lying especially if both seller and buyer are good with it? I’m looking at a truck that the guy wants 27,500 for it and wanted to save as much as possible.

 

When I sell a vehicle I report the sale price to the state. Some states cross-reference sales. I'd never recommend someone commit tax fraud.

 

This used to be common practice in Maine to keep excise tax down, now they use their own value based system. I have to agree, why does an item that has sales tax already payed on it (when first bought), then again every time it gets sold?

 

I totally get what you're asking and saying. That being said, I have only heard of this being done with vehicles that could of been worth no more than 3 or 4k, and usually need serious work. I don't imagine any state getting all Gung ho to try and track down values........ Well maybe in California, nothing surprises me with that state government now.

 

40,000 truck has 3,200 in sales tax in Ohio, sell it years later for 35,000 and someone pays 2,800 in tax then it sells years later for 20,000 and someone pays the 1,600 sales tax on that. That’s 7,600 bucks in just 3 sales!!! It should be illegal to do that to people. I get that some people want to be honest but I feel that those folks are letting the government screw them over big time. It’s a joke. But that’s not what I’m asking. I want to know if you did fib a little how much is too much ?

 

Ask the seller if he'd be willing to mark down a lesser selling price. It's the only way to play it safe because everyone is on the same page.

I've bought and sold plenty of vehicles and I always ask and the sellers always ask politely and respectfully if the selling price can be marked down for less. Sometimes yes, sometimes no.

 

May not matter depending on your state's law.

In MA, you pay tax based on either the sale price or book value, WHICHEVER IS HIGHER on a private party sale

 

Absolutely. Just curious how low some people have gone without any hassle. My buddy sold a car for 19,000 and put 10,000 on the bill of sale. He got a letter from dmv asking why the car was sold at that price. He wrote down that it had some electrical problems and never heard back from them but him and the seller were on the same page as far as their response.

 

Within the family weve sold to each other for much less on the bill of sale.

Outside we've bought and sold many cars in Ohio growing up and there was always a bit of a "fudge factor" that never caused a problem.

We didn't pay property tax on vehicles in Ohio though only the initial sales tax.

 

That sucks. Fortunately here in Ohio it’s not like that. Not yet

 

I recently sold a UTV to a young guy. He was very responsible and he saved for a long time to buy one.

When I showed him the bill of sale, i showed him what he technically “bought” it for. He was really appreciative.

This dude busted his ass to save money so fuck the government.

 

I bought a Lexus for $300. I put $300 on the title and the lady at the DMV said "huh, only $300?".

I told her it was a clunker and she said "ah, oh" and moved on

 

Why wasn't this posted yesterday

 

What was it really worth?

 

$300

 

I bought my Camaro when I was 18 for $750 at an auction, book was about $2500. The guy at the RMV chuckled and said "oh you are gonna be paying some tax here".

I looked right back and said "yeah I know, even though I bought it from the government and you know that's the real price you're still going to force me to pay mightily..and I can't do anything about it. Now stop laughing about it, do your job that my taxes pay, and get me my fucking paperwork so I can get out of this place"

 

Yep, these rules that require us to pay the higher of blue book or sale price were promulgated after a bunch of societal freeloaders decide to commit fraud because they are above the societal construct the rest of us have agreed to abide by. Now if I get a good deal on a car I truly get screwed.

 

There are way bigger fish that are royally screwing us every dam day.

 

Nobody said they are above societal structure bud. The structure itself is flawed. Believe me I pay my share of taxes. I’m am in no way a freeloader. Lol