I've searched and read a bunch of sites. Still unclear on some things. Any know? I've never bought a used car from a private party before.



Do I pay taxes on the used car? I assume yes, when does this happen (e.g. at the DMV during registration/title transfer or bill in the mail later)?

What amount is the taxes based on?

 

i found this out 3 months ago when i sold my first car..

what u can do lets say u pay 5 grand for the car... on the transfer paper or what ever the hell that goes to dmv u put that u got it for like 2 grand or even like $500... and that way u wont get all your money took. for taxes and bull****

i just recently found this out too soo..

 

Its harder to do on newer cars, but when youre buying old stuff...say like my friends Datsun 510 SR20 thats for sale for $5000, you pay $5000 cash, and you write that you paid $300. Then the DMV will see $300, and see the year of car is a 71 and most likely not question you. So instead of paying $400 tax on $5000 you pay $24.

But you can get away with cutting the price in half I would think. I dont know what the consequences are if they catch you somehow...i dont think they could catch you.

EDIT:lol see above post

 

Yes, you pay sales tax on the user car. The tax rate is based on where you live.

After you buy the car, you have 10 days to complete the title transfer with DMV. You pay the sales tax and a transfer fee (a small amount around $10 to $15) when you go to DMV to transfer the title. Good luck.

 

If I sell my car, do I pay income tax or anything like that?

 

haha glad to see were on the same page exactly what im saying...


well En3D theres you solution

 

thats the "ripping my self off way" from my point of view
im really not trying to pay too much for my taxes no siiir

 

hmm im not sure.. i will have to talk to my dad about that