slingshot

I may be trading my car for another car.
What's the best way to handle the trade in terms of bills of sale and all of that?
Can we write bills of sale for a minimal ammount (like one dollar each) and therefore pay sales tax on that ammount? Or better yet is there a way to write it up as a trade where it would be considered a gift to both parties and not pay sales tax?

phyber

you'll have to write a bill of sale being that it isnt a trade involving a dealer.

if your car is nada worth 10k, and the other car is worth 12k, you'll technically have to write a bill of sale for 2km and have all parties and witness sign it.

otherwise, just have a bill of sale that the other guy is giving it to you for a gift, idk if they still allow it...but if memory serves me right they require an amount of some kind, be it $1, $10, $100....then you pay the tax on that amount written on the Bill

I Love (.)(.)

I always write 500 sale price on title and have a bill of sale written. they havent questioned me yet, and ive done 5 this year.

slingshot

Just checked the DMV site and it says if the vehicle is more than five years old they go by the trade-in value. It should be pretty cheap to register this car if that's the case.


Any idea about registration costs? Or is that the same thing?

phyber

to get plates put on the car and have it in your name, you have to register it, which i believe is 3% of the cars value.

for my $13.5k srt4, i payed +/- $400 for it.

98formulaLS1

you should write $1000. Since tax is 3% or $35minimum, it's comes out to be about the same. Just make sure you provide a bill of sale that also says $1000.

BAN HAMMER

Anything LESS than $800 they go by trade in value.

TYPE JDM

Tranfer tags and register vehicle is usally $49 total, I do it every few months. Thats only if the bill of sale is under $2000, the minumum is $35 sales tax & $10 title fee just to re-title only.

slingshot

Thanks all