what do i do???

im here in california and im buyin a car from private party
the car is going to be financed so my bank will be lien holder in the title....

so how does this work???

i heard i pay the Tax when i go to DMV register....
can the seller put it for lower to reduce pay tax???
how risky is it ??

can the seller still putit for less when my bank knows that actual price i bought the car for ??

please answer my question thanks a lot

 

Yes you pay the tax when you register at the DMV.

Yes the seller *could* list a different price on the title exchange but why would they? They are now becoming a party to tax evasion. Not something that you would want to do to just anyone.

In your case it would be extremely unwise to attempt this. The odds of you getting caught are very good. First your bank is going to get the title with the selling price listed on it. If that price is different than the price you financed they will investigate the difference. Afterall you've just declared the collateral on your loan to be less than the value of the loan.

They could choose to cancel the loan in this case(i.e you are committing fraud), and demand that you repay the loan immediately.

Additionally if you list the car sale price significantly below the market value of the vehicle(i.e. where you will actually save real money on the tax of the car), there is a good chance the state will investigate in under possible tax evasion. Since all it will take is a phone call to your bank to catch you in your lie, if they choose to investigate you will get caught.

This is a classic penny smart/pound foolish case. The amount of money you could save would does not offset the risks of doing this. Is saving a couple hundred dollars worth the consequences? You could screw your credit, face fines and penalties and possible jail time. Even Al Capone couldn't shake the tax evasion.

 

Pay your taxes

 

Be a true American and pay your taxes!!!!! Stop acting like a cheapo...