I am buying a used car, what should I tell the dmv I paid for it to pay the least sales tax on it?

Question

Also, can you only say its a gift if your related to the person your getting it from? Any tips/advice?

I'm in Ca.

Answer 1

Yes, definitely. If you bought it from a related person, tell them it was a gift(make sure your relative knows your plan). They will charge the minimum taxes ($25 in Illinois), but only if the car is used. Sometimes, if it's very new, you have to pay a percentage of the value, but it's still cheaper if it was a gift from a relative.

Answer 2

It depends on how empty you like to keep your karma back pack. I sold a car 1500 and I think he said 500. It is just a used car. I think DMV spends most of their time tracking the uninsured and DUI's. The gift thing, I think you are crazy, if you actually bought it. Why use the "one time only" and have to pay taxes on something you may luck into in the future?

Answer 3

I don't know what state your in, so I don't know what that state's rules are. In Kansas, the DMV uses the Blue Book value of the vehicle to determine sales tax, so it doesn't matter what you paid for it. I assume other states are doing this as well, since Kansas is often a follower rather than a leader in this kind of legislation.

Answer 4

It depends on the state, but be warned: DMV often contacts the seller to verify the selling price. If you get cought lying, it could be considered tax fraud or perjury.

Answer 5

More and more states are using blue book value on private sales to prevent tax scams.

Answer 6

Tell them the truth. There is no sense in lying about it, even if you'd rather not spend the money.

Answer 7

Just don't make it sound too phoney