BimmerFest BMW Forum banner

1 - 20 of 20 Posts

·
e39 m5 touring aspirant
Joined
·
1,725 Posts
Discussion Starter · #1 ·
If I was to purchase a vehicle from a private seller, what is the procedure in paying sales tax? Will it be included in the selling price of the private seller? I live in the Riverside County in California where the sales tax percentage is at 7.75%. Sorry for the ignorance, I've never purchased a car thats not from a dealership. Thanks in advance!

This is the car I'm planning to buy:

http://www.autotrader.com/fyc/vdp.jsp?car_id=226246163&dealer_id=60619873&car_year=2002&model=M5&num_records=25&make2=&keywordsfyc=&keywordsrep=&engine=&certified=&body_code=0&fuel=&awsp=false&search_type=both&distance=500&marketZipError=false&color2=&search_lang=&make=BMW&color=WHITE&page_location=findacar%3A%3Aispsearchform&min_price=&drive=&default_sort=priceDESC&max_mileage=&style_flag=1&sort_type=priceDESC&address=92883&advanced=y&end_year=2005&doors=&transmission=&max_price=&cardist=13
 

·
Registered
Joined
·
62 Posts
Normally you buy the car for the asking price. You get to pay the taxes at the DMV when you register it. This is where u can normally save yourself some money. If you get a Bill of sale, which in some states can just be a piece of paper with both names the VIN, year make and model and the VIN. You can but a lower price on the Bill of sale and title and save some money at the DMV. Maybe not legal or anything but, I have done it for almost every private party car I have bought. CA may be different or more difficult. Get on the Cale DMV site and take a look.
 

·
Registered
Joined
·
1,033 Posts
Like Slim said, you will be paying for the tax at the DMV. The car is listed at $35k but you can pay partial in cash and ask the seller to write down a lower amount. So when you go to the DMV to pay for the tax, you will get a tax break.
 

·
Registered
Joined
·
993 Posts
Doesn't work. They will assess sales tax at higher of cost or book. That is, it doesn't matter what you pay for that car (real or false), they will charge you sales tax based on a predetermined book value.

Who buys a car for the asking price? That's the negotiation starting point.
 

·
Registered
Joined
·
302 Posts
Normally you buy the car for the asking price. You get to pay the taxes at the DMV when you register it. This is where u can normally save yourself some money. If you get a Bill of sale, which in some states can just be a piece of paper with both names the VIN, year make and model and the VIN. You can but a lower price on the Bill of sale and title and save some money at the DMV. Maybe not legal or anything but, I have done it for almost every private party car I have bought. CA may be different or more difficult. Get on the Cale DMV site and take a look.
CA operates in the same manner. Over the course of 11 years and living in LA/OC/and Riverside counties, I've done as above on private party purchases and paid lower taxes. When I purchased my E30, I paid $2500 for it, but somehow the Bill of Sale only said $100. :thumbup: Now when you go to register it each year is when they will assess the value and your yearly registration will be higher, but you'll save more money on the front-end.

PS> I bought my 528i about a week and a half ago from a dealer in LA County where the sales tax is 8.25% but used my old address in Dana Point where the sales tax is only 7.75%. Not much of a savings but it was something!
 

·
Registered
Joined
·
268 Posts
Doesn't work. They will assess sales tax at higher of cost or book. That is, it doesn't matter what you pay for that car (real or false), they will charge you sales tax based on a predetermined book value.

Who buys a car for the asking price? That's the negotiation starting point.
I'm not sure thats accurate. When I got my 540i I gave my little brother my old Altima for free, but declared the sale as having been for $500 and he paid sales take based upon that price in New York. Book value for the car was $5.5-6k...

I suppose most people don't declare values higher then what the real sales price was, but we didn't want to be hassled when signing over the title.
 

·
VA makes me miss WA
Joined
·
1,779 Posts
Granted, i dont live in CA, but im my experience, they dont assess taxes on value unless what you put on the bill of sale is low. The way around this, is when you hand them the bill of sale, have an explanation. if the CEL is on=needs engine work..... DMVs out here didnt need anything specific or documentation, but high dollar work that was gonna have to be done, like engine, tranny, etc you can get a pass. So, if work needs to be done.....
 

·
Registered
Joined
·
993 Posts
Well, if you can get away with that in Cali, then go for it. In Mass and in DC, there's a blue-book equivalent value assigned by the DMV, and it doesn't matter what you tell them.
 

·
Registered
Joined
·
1,033 Posts
I got my car last year and the previous owner was nice enough to put down only $15k on the bill of sales. I went to the DMV and paid the tax on only $15k.
 

·
Registered
Joined
·
302 Posts
Well, if you can get away with that in Cali, then go for it. In Mass and in DC, there's a blue-book equivalent value assigned by the DMV, and it doesn't matter what you tell them.
Trust me...California will tax him in other ways and get their money. That's why I moved out of the state...

Do miss the weather though.....and the beach :(
 

·
E30 Maniac
Joined
·
2,461 Posts
Well, if you can get away with that in Cali, then go for it. In Mass and in DC, there's a blue-book equivalent value assigned by the DMV, and it doesn't matter what you tell them.
you can specify the value in nj. can save some money but it's not legal.
 

·
VA makes me miss WA
Joined
·
1,779 Posts
I dont really know where our DMVs get their value. When i sold my last car, on kbb it said 5400, so i took off a few hundred for a friend of mine, but the DMV said 10200?? that was ridiculous. especially in a state where sales tx is a hair under 9%...... i dont get it..
 

·
Registered
Joined
·
90 Posts
another benefit about a private seller is he needs the money either way... you should always try to get the price lower since its a private seller and not a dealer. dealers try make a profit but a private seller either want to just get rid of the car and negotiating is better with private seller. and you would go to ur DMV about the sales tax... when u buy it from a dealership they take car of it for you and u just receive, a letter in the mail (its basically a receipt for the sales tax you paid) will come from the DMV.
 

·
Registered
Joined
·
90 Posts
you should tell the seller to put higher mileage on the car.. that should change to different when u go to the dmv... unless they come out and look on the car themself. put an extra 10,000 miles on the car... haha
 

·
Registered
Joined
·
8,775 Posts
As part of the deal you want to take it to a BMW dealer for a pre-purchase inspection at your expense. If they say no then walk.

Do not take it to an indy. When you take it to a dealer they will write everything wrong on an inspection form.

You need the dealer and not an indy. The seller can not argue against what the dealer says on the form. They can argue against an indy.

Be smart and pay for an inspection at your authorized BMW dealer.
 

·
Registered
Joined
·
254 Posts
those dummies dont care all there concerned is you pay some sort of tax on the whip they know the deal
 
1 - 20 of 20 Posts
Top