Buying from a dealer as a private party

[6spd4lyfe]

Stupid question, but if buying a car from out of state from a local dealer, is there any way they can sell you the car as a private party so that you don't have to pay taxes when it arrives to your state? Or is that illegal?

[DocL]

Have you ever bought a car before? There is no way a dealer can sell you a car as a "private party". So yeah, stupid question.

[6spd4lyfe]

Originally Posted by DocL

Have you ever bought a car before? There is no way a dealer can sell you a car as a "private party". So yeah, stupid question.

I have only purchased cars from private party and never paid taxes on them before...

[PhatLyfe]

In NJ we pay taxes on the car when we register for new plates.. no way we can run away from taxes..

[Hoppyumr]

Originally Posted by DocL

Have you ever bought a car before? There is no way a dealer can sell you a car as a "private party". So yeah, stupid question.

And to add to that generally, you aren't going to get around sales tax. It might just depend on how it's calculated.

Note that some states are getting smart regarding sales in used cars with private party because they finally figured out that people were "screwing" them out of tax money, so some I've heard rather than charge tax based on the actual sales price have already gone to an value based system and potentially include vehicle age and mileage, or they might use book/fair market value; this way it doesn't matter if you claim to have paid $1.00, or way more than what they assume the value to be. Note that if they don't believe the price you put down, the state/county has the right to take legal action for tax evasion. Just sayin'.

For instance:
Texas - https://www.txdmv.gov/standard-presumptive-calculator

MS- See page 4 paragraph on sales tax. - https://www.factorywarrantylist.com/...ssippi-faq.pdf

MN - older cars - https://www.revenue.state.mn.us/guid...-vehicle-taxes


Either way, you gotta pay to play!

[DocL]

Originally Posted by 6spd4lyfe

I have only purchased cars from private party and never paid taxes on them before...

So you don't have to pay sales tax on used cars in AZ? Laws may vary from state to state. If there isn't a sales tax, then the selling dealer shouldn't collect it if you are going to register the car ytourself.

Originally Posted by Hoppyumr

And to add to that generally, you aren't going to get around sales tax. It might just depend on how it's calculated.

Note that some states are getting smart regarding sales in used cars with private party because they finally figured out that people were "screwing" them out of tax money, so some I've heard rather than charge tax based on the actual sales price have already gone to an value based system and potentially include vehicle age and mileage, or they might use book/fair market value; this way it doesn't matter if you claim to have paid $1.00, or way more than what they assume the value to be. Note that if they don't believe the price you put down, the state/county has the right to take legal action for tax evasion. Just sayin'...

Either way, you gotta pay to play!

When I lived in Massoftwoshits in the 80's and 90's they calculated tax on what they thought the car value was. I had bought a used Alfa Romeo really cheap and they taxed me on their assumption of the retail value. I was pissed because I was a student at the time.

[FrznM]

I’m in Kansas and here you have to pay sales tax. They will not register the car until you prove that you already paid sales tax or they will make you pay it when you go to register. There’s no way around it… maybe laws are different there but I haven’t heard of people really getting out of sakes tax except for maybe registering a car in Montana or something.

[Gxmmtme]

Originally Posted by DocL

So you don't have to pay sales tax on used cars in AZ? Laws may vary from state to state. If there isn't a sales tax, then the selling dealer shouldn't collect it if you are going to register the car ytourself.



When I lived in Massoftwoshits in the 80's and 90's they calculated tax on what they thought the car value was. I had bought a used Alfa Romeo really cheap and they taxed me on their assumption of the retail value. I was pissed because I was a student at the time.

There is sales tax on used cars in AZ. OP just is asking if a dealer will help him commit fraud to save a few bucks. Which a dealer will not do. It also looks like AZ is still an honor system on used cars so it is possible to defraud the system still, but i am not sure how easy it is to do that with a 50-60k purchase. Its only like 5.X% so imo not a bad rate

I have purchased a few cars out of state and its depends on the state but most out of state dealerships file all that with your state on the sale. But double check what they are collecting as a few times the dealer tried to collect their local sales tax from me when my state tax is almost half of what they wanted to collect.

I think California is different but i have only gotten quotes on cars never purchased from CA.

[DocL]

Originally Posted by Gxmmtme

There is sales tax on used cars in AZ. OP just is asking if a dealer will help him commit fraud to save a few bucks. Which a dealer will not do...

Yeah, we all kinda knew that that is what he was inferring. I was just being as polite as I could.

[WingZeroX5]

I've bought plenty of vehicles from out of state. In NH, there's no sales tax. However, in order to register it, there's a town and state portion which is calculated based on the value of the car. 1st year, is the highest, then goes down from there...which usually works out in your favor because the amount assessed < a typical sales tax

Anyway, I moved out but still retain residency there. If I buy a car from anywhere else, I still don't pay sales tax because it's going to be registered in NH.

Really no way out of it, because you pay taxes (or fees in my case) in the state where it's going to be registered in.