Hello Everyone.
I am in the market to buy a used vehicle.
I am from Atlanta, GA. and I found the car I want in Pennsylvania.
It is a private seller, and planning to drive back to GA.
Question is..

$37,000 will be only amount that i will be paying?
When I bring back the car, do I need to pay sales tax when I register the car here in GA?
Or just register fee, license plate fee, that's all?

Also, This seller said, He is not done with the payment (about $23,000) on the car. How does that work?

 

you will have to pay the taxes as well when you register the car

 

Are you sure??? Why is that? =( I thought the beauty of Private seller was that there were no taxes..

 

You pay sales tax wherever you title the car (if that state has sales tax).

 

You do not pay tax in the state it is purchased.
You pay tax in the state where you transfer the title to yourself.

Whatever the seller writes on the title is what is taxed.
Many people knock off some money from the price on the title so you can pay less tax, it does not hurt to ask if the seller is willing to do this.

The way every state works is different though, I would call DMV and ask specifically about it. It could be either one of the options below..

1) Pay for Sales tax where you bought the car. Your local DMV will credit whatever you paid, and you pay the difference.

or

2) Pay 7% GA sales tax to register an out-of-state purchased car, but you can submit a request for a refund if you paid tax in the state the car was purchased from

edit:

or

3) keep the G37

 

^^ "You pay tax in the state where you transfer the title to yourself" and DMV go by kbb price not the price that you brought it for .

 

it doesn't work that way bro.. it goes by the title price I'm pretty sure about this. DMV is not going to option out exactly your car's packages and addons and determine what is the KBB value.

When I bought my Lexus, I paid tax on the price that was listed on the title. You failed to account for the condition of the car, which translates to the negotiated price, which is the price you paid. And that's the price you'll be taxed on. Anyway that's not the point of this thread.

The reason you need to "pay" for tax to the state you purchase the car in, is because you're driving it back to GA. Car needs to be registered to be driven..


Some states issue a "movement permit". You may want to contact the DMV in the state you are buying the vehicle as well as your states DMV for correct information.

The best thing to do is pay and submit for the title transfer while you are there at a local DMV with the private seller present. At the DMV, you can pay for a temporary license plate when you transfer the title. This way you just have to pay for Sales Tax when you reach back home in your state.

I would just call both DMV to find out about it.

 

Actually many states are starting to use KBB because of people fraudulently stating a lower price than they paid for the car. They may not do this with older cars, but with newer cars that obviously worth quite a bit more.
Incorrectly stating the purchase price is tax fraud and is unfair to those that pay their fair share, and the DMV has caught on to this.

 

Some states use book value, some use a bill of sale. Just ask the DMV and they'll let you know.
You're going to pay the taxes on it when you register it in your home state.

He owes 23,000 on the car, so that will have to be paid off before the lean is cleared from the title allowing you to transfer the car into your name. You will have to work with his financing agency and pay them, not him for the car. If you just hand the guy the money, he's going to walk away with it then report the car stolen and make out like a thief, which he is. He'll have 30,000 in cash, his insurance will buy his vehicle, and you'll be stuck with a stolen vehicle and no money.

If you're financing this transaction, let your financial institution handle those details. That's what they're there for. I can assure you they won't transfer any funds without knowing the title will be cleared by it.

 

Good advice...

Last time I sold a car that I still owed money on, we just met at the nearest local office of my lender. The buyer gave me a check for the purchase price and I signed it over to the lender. They cut me a check for the amount I was owed back after payoff.

 

exactly ! maybe its a texas thing,

 

I don't know if this ever happened, but this is form 2009. In Georgia you pay a property tax on your car every year. In 2009 they talked about dropping that and accessing a 7% "title fee"...no different than a sales tax really; just giving it a different name.

Georgia Contemplates Ending “Birthday Tax” on Cars | The Truth About Cars

 

Thank you everyone for your help and great comments.
According to GA laws (that I found online) This is what it says

Do you pay sales tax if purchased from a private seller outside the state of Georgia and register the car in Georgia?


If you are a GA resident, you do not have to pay sales tax as long is it is a private seller, even if out of state private seller.

From Wiki Answers
Read more: Do you pay sales tax if purchased from a private seller outside the state of Georgia and register the car in Georgia

 

But do you still have to pay a yearly property tax on the vehicle?

Any state I have lived in did not have a property tax for a vehicle, but there was a sales tax for purchasing...one way or another, they will get money out of you.

 

Yup! We still have yearly birthday tax, So even if I have the G or New car, that is the money I still gotta spend. I am glad that there is no sales tax in GA