CA sales tax on used car sales
07-17-2004, 12:02 AM
#1
Race Car
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Join Date: Jun 2003
Location: Albany, CA: celebrating 100 years of independence from Berkeley, CA
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CA sales tax on used car sales
In California (and elsewhere), can you claim that you purchased a vehicle in a trade rather than cash purchase? Reason I ask is if you purchase a car as a trade, I think you pay tax on the "market value" rather than the actual purchase price. If the DMV will let me use Blue Book Value, we're talking about $4500 on an Turbo S (which is obviously way off!) and a huge savings -- especially in California withtax of over 8%.
07-17-2004, 01:34 AM
#3
Hey Man
Rennlist Member
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Just ask the seller to write up a separate bill of sale for a much lower amount. When I go to the DMV counter I ask if I have to get a non-op for a car that's not road worthy; that usually throws them off as long as it not $30 or some ridiculous price. You will pay more on a trade than a bogus sale. They didn't blink when I transferred the 86 at $2800. Go too low and the questions start flying so be ready with a good story about how it runs but can't be driven, someone broke all the glass, damaged the paint, etc. Remember they will have the smog cert the seller has to provide so don't tell them the engine is blown. If it truly is a trade then the other person has to pay a fee also. You can always call them and get the answers if they ever pick up the phone. Good Luck, we all hate resale taxes out here.
