Buying a used car... can u avoid tax??

[rEdEvoRS]

I swear i always hear people talkign about avoiding taxes and this and that, is there really away around the tax at the dmv? Is anyone experience in the car sales stuff, and used car markets? I dont want to avoid taxes, im just wondering cause i hear people talking about that stuff all the times, like buy private and avoid dealer TAX!!!let me know fellas!

[bleublaze55]

I have never heard anyone, get all the tax off, but a lot of the time you can negotiate it with the price like, for example i bought my 05 evo, for 26999 tax included, and that was it.

[rEdEvoRS]

hmm not talkin about buying from dealer, im talking about buying from another person private party

[tabio42]

If you want to be shady about it, you can state the sale price as being lower and therefore paying LESS tax. But you can't get out of the sales tax unless you are a dealer.

Err actually I don't know how it works buying it from a private party... Just when I think I know the answer to something...

[nurb2]

For private sales, you used to be able to get away with putting a lower sell price for tax purposes, like $250 was common for some reason, but the State caught on to it. Now they tax based on what they think the car is worth.

-nurb2-

[thetaxguy]

If you want to be shady about it, you can state the sale price as being lower and therefore paying LESS tax. But you can't get out of the sales tax unless you are a dealer.

Err actually I don't know how it works buying it from a private party... Just when I think I know the answer to something...


Sounds right to me ;) But what do I know?

[gofaster87]

DMV has an actual book they go by for car values. You have to be in the ballpark.

[rEdEvoRS]

ahh i see.. cool, i was just wondering cause i see people posting it by their cars on autotrader, but anyways paying tax is good, it pays for things :roll:

[Terry S]

http://www.dmv.ca.gov/vr/osreg.htm#BM2561
"Existing law imposes a use tax on a vehicle purchased outside of California and brought into California within 90 days of purchase. New legislation effective October 1, 2004 through July 1, 2006 requires payment of use tax on a vehicle purchased outside California and brought into California within 365 days of the purchase date."

So you buy a used vehicle in another state but dont register it there, leave it there for a year, then bring it to CA and you dont have to pay tax on it.

Basically, thats how you do it. It used to be 90 days, but they lengthened it to make it easier to collect taxes.

Terry S

[silex]

I thought with used cars, you just had to pay a title tranfer fee? I know you have to pay taxes on everything, but to transfer ownership of a car? That's ridiculous.

[Terry S]

I thought with used cars, you jut had to pay a title tranfer fee? I know oyu gotta pay taxes on everything, but to transfer ownership of a car? That's ridiculous.


You have to pay for transfer of the title AND pay sales taxes on the car you just purchased.

Terry S

[TrickedOutEVOVIII]

thats if you pay cash for the vehicle outright...but if you buy a used car from a dealer or used car lot and finance it...they have to include sales tax and lic and reg fees if the car doesnt already have current tags. now...you CAN have the dealer include the tax and fees in the selling price so that you dont have to pay that. lets say the price of the car is 10,000...you can negotiate the price of the car down to about 8900-9000 and have them include the tax...that way dmv taxes you for less when you pay it off. theres a lot of ways you can avoid things or get them discounted, you just have to know how to deal with whomever youre working with.

[speedracer2169]

either way no matter how you look at it you have to pay tax wether it's at the dealer or private party. You can't avoid it and don't mess with government. Look at what happened at Ron Isley for not paying taxes. Besides in most cases you can write it off on your tax return

[BoostAddicted]

if the owner of the vehicle your buying has the title in hand you can do it as a gift title transfer and you don't get taxed. i've done it with the past 2 cars i've bought :D

[kimletrim]

easy, just ask the person you bought the used car from to put a lower price than what you really pay for, now your tax would be low


That's called FRAUD!