MrMakesItRain

iTrader: (14)

Anyone know about trading cars in california? Me and my buddy want to trade cars and do everything legit. What are the steps to go through, anybody know?

Also could we both put gift during the title transfer to avoid paying the taxes?

i JUST renewed registration and smogged so that should transfer over fine? and then my buddy would just have to smog his car and we can both transfer titles and call it a day?

Esxtreme

iTrader: (7)

Yes just put as a gift i did the same. you will need to sign some papers in front of the clerk and that's it yes wait until he smog his car first.

MrMakesItRain

iTrader: (14)

hmm i was reading somewhere that if you put down gift you are taxed the "market" price?

eugenile

yes indeed

snowflow

iTrader: (14)

And who decides the market price?

East Bay STI

iTrader: (27)

Do what my aunt did for me a few years ago just say sold it for .05 cents

-Gio

MrMakesItRain

iTrader: (14)

i should lol. it doesn't make sense why we would get taxed for a trade since no one is actually making a sale or money off the deal.

i mean technically i could sell my car to him for .05 cents and he could have sold me his car for .05 cents afterwards?

snowflow

iTrader: (14)

Ya, that would work.

I used to buy my motorcyles for "$500"

smyamaha

I have never paid or sold a used vehicle for more than "$1000" . i may be wrong, but I think they can ask to inspect it if they think the price is too low. The one time they asked me I told them I bought it as parts and had to put it back together, no more questions after that. Went outside and drove it home. hehe

MrMakesItRain

iTrader: (14)

I don't even know what to put since neither of us are purchasing the cars?

if it helps im trading my 02 wrx wagon with about 100k miles for my buddies 07 2.5i with 40k miles.

i don't want to put anything too ridiculous if its going to be suspect and could potentially get them to audit it or something.

smyamaha

it's all about how much you are both willing to pay in REG. fees. The higher the number the more you will pay each year, but the less obvious it will be. Oh, and I'd recommend not going to the same DMV at the same time. I would guess 3k and a its "wrecked" would do nicely.

Esxtreme

iTrader: (7)

To: OP :hmm i was reading somewhere that if you put down gift you are taxed the "market" price?

That taxed price is how much you think your car is worth on that piece of paper when you both agree to sign and do the trade. The less you put the less you pay.

subaruwrx

Eh, I disagree. If you write too low a number, they will say "This sounds like a gift". The first time I got that, I had to pay "market price" of my choosing and the second time I said it was a parts car and paid $20 in taxes.

Esxtreme

iTrader: (7)

Well when i put that i traded my 03 wrx i wrote about 5k down. when i got my 04 Sti i wrote it down as i got it for $3800 with no problems.

MrMakesItRain

iTrader: (14)

i'm thinking about just writing $1 and see if they care. if im paying the transfer fee and registration, the taxes should just be on an actual sale.

There is no way to prove that we each didn't just decide to sell cars for $1.