Buying at a "friend-discounted" Price
11-30-2010, 10:23 PM
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Buying at a "friend-discounted" Price
I plan to purchase a G from a private party and asked seller to state the value of the sale at $16k since we are "friends." He is fine with stating that on the liability release form and title but wants to put the actual sale price of $25k on the bill of sale to reassure himself of not getting screwed over in case I decide to only pay him $16k rather than $25k.
Does anyone know if the DMV in California require the bill of sale to determine the tax/registration on the car?
Thanks in advance for your help!
Does anyone know if the DMV in California require the bill of sale to determine the tax/registration on the car?
Thanks in advance for your help!
Last edited by Kwang; 11-30-2010 at 10:28 PM.
11-30-2010, 11:34 PM
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Hi!
I'm with the California State Enforcement Office out of San Jose, the Fraud Division. If you would please, send your full name, DOB, home address and address of your work location, along with your "friend's" same information. We'd like to stop over and speak with you about conspiracy to commit fraud.
Please comply and save us the time of going through an IP address location process...in the end that will just be harder on you and us.
Thanks
Please comply and save us the time of going through an IP address location process...in the end that will just be harder on you and us.
Thanks
12-01-2010, 05:01 AM
#4
california's kinda broke man, lol. it's hard to say... granted yes that's about 1k in taxes you'd be saving.
lets put it this way. What you paid for it, and what it's worth are two separate things. so I don't forsee this being an issue. but yes they can easily determine what you are doing by what the previous owner and what you would be paying in registration fees.
and no beyond the pinkslip and the release of liability, the "bill of sale" is something legally binding only between the buyer and seller.
and your registration I don't believe is based on the dollar value of the used car purchase value anymore. I think they can determine it based on the previous year. I mean I don't pay zero fees if I receive a car for zero money...
i hope you're paying in cash, lol. (well not literally, but like not taking out a loan for this)
lets put it this way. What you paid for it, and what it's worth are two separate things. so I don't forsee this being an issue. but yes they can easily determine what you are doing by what the previous owner and what you would be paying in registration fees.
and no beyond the pinkslip and the release of liability, the "bill of sale" is something legally binding only between the buyer and seller.
and your registration I don't believe is based on the dollar value of the used car purchase value anymore. I think they can determine it based on the previous year. I mean I don't pay zero fees if I receive a car for zero money...
i hope you're paying in cash, lol. (well not literally, but like not taking out a loan for this)
Last edited by mw09g37; 12-01-2010 at 05:06 AM.
12-01-2010, 01:35 PM
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The easy answer is
why stop at this juncture? If you're going to evade State regulations, why not have two "bill of sale"? One made out in the amount appropriate for each party's interest?
More to the point. Doubt if most State's care what the bill of sale states, since too many people attempt trying exactly this scheme. They rely more on "official" paper work for tracking and applying laws and those who violate them.
Still waiting address and other data.
More to the point. Doubt if most State's care what the bill of sale states, since too many people attempt trying exactly this scheme. They rely more on "official" paper work for tracking and applying laws and those who violate them.
Still waiting address and other data.
12-02-2010, 03:07 AM
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california's kinda broke man, lol. it's hard to say... granted yes that's about 1k in taxes you'd be saving.
lets put it this way. What you paid for it, and what it's worth are two separate things. so I don't forsee this being an issue. but yes they can easily determine what you are doing by what the previous owner and what you would be paying in registration fees.
and no beyond the pinkslip and the release of liability, the "bill of sale" is something legally binding only between the buyer and seller.
and your registration I don't believe is based on the dollar value of the used car purchase value anymore. I think they can determine it based on the previous year. I mean I don't pay zero fees if I receive a car for zero money...
i hope you're paying in cash, lol. (well not literally, but like not taking out a loan for this)
lets put it this way. What you paid for it, and what it's worth are two separate things. so I don't forsee this being an issue. but yes they can easily determine what you are doing by what the previous owner and what you would be paying in registration fees.
and no beyond the pinkslip and the release of liability, the "bill of sale" is something legally binding only between the buyer and seller.
and your registration I don't believe is based on the dollar value of the used car purchase value anymore. I think they can determine it based on the previous year. I mean I don't pay zero fees if I receive a car for zero money...
i hope you're paying in cash, lol. (well not literally, but like not taking out a loan for this)
I was reading the dmv website concerning transfer of title as gifts and there's a section stating "Upon change of ownership, the department reestablishes the vehicle value and determines the appropriate Vehicle License Fee based on the purchase price or current market value of the vehicle."
I love ambiguous language.
12-02-2010, 03:08 AM
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why stop at this juncture? If you're going to evade State regulations, why not have two "bill of sale"? One made out in the amount appropriate for each party's interest?
More to the point. Doubt if most State's care what the bill of sale states, since too many people attempt trying exactly this scheme. They rely more on "official" paper work for tracking and applying laws and those who violate them.
Still waiting address and other data.
More to the point. Doubt if most State's care what the bill of sale states, since too many people attempt trying exactly this scheme. They rely more on "official" paper work for tracking and applying laws and those who violate them.
Still waiting address and other data.
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12-02-2010, 03:17 AM
#8
Thanks for the input!
I was reading the dmv website concerning transfer of title as gifts and there's a section stating "Upon change of ownership, the department reestablishes the vehicle value and determines the appropriate Vehicle License Fee based on the purchase price or current market value of the vehicle."
I love ambiguous language.
I was reading the dmv website concerning transfer of title as gifts and there's a section stating "Upon change of ownership, the department reestablishes the vehicle value and determines the appropriate Vehicle License Fee based on the purchase price or current market value of the vehicle."
I love ambiguous language.
yeah it's generally whichever is higher.
but yeah taxes. just don't get audited... that's a hefty fine... ha ha
12-02-2010, 08:29 AM
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No kidding, I got a call once from the Fraud Division in Ohio about mileage on a motorcycle title I traded to a dealer. Turned out to be an error on the dealers part when completing a form, but apparently, these "things" get checked from time to time. Good luck.
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