Does buyer need to pay sales tax if buying from...
#1
Does buyer need to pay sales tax if buying from...
I know if I buy it from dealer, I have to pay sales tax, no questions about it, but how about private party? The reason I ask is that I can buy a slightly used 05 car but I want to know how much I can save. If I still have to pay sales tax, I might as well buy a new one since it's only $1000 less than the new car base price, but if not, I m saving about ~$4000 since the car I am eyeing has a base price about $29k.... I know I have to pay registration fee, etc, but sales tax is the major concern.
I am thinking of slightly used 05 S2000. Dealers are finding a hard time to sell this car, so I can get it below invoice (~$29,100)... With sales tax, it's going to be $32k OTD for new. If used from private party (assuming no sales tax), I can get one for $28k+ registration, license, etc fee or even less around here at 'For Sale'. $4k is a lot, u know.... I just want to know if I can save $ from sales tax. Another info is that I am going to finance the car, but not 100% finance. I can ask the buyer to report the price exactly as the amount I finance, and I pay the difference with my cash...
I am thinking of slightly used 05 S2000. Dealers are finding a hard time to sell this car, so I can get it below invoice (~$29,100)... With sales tax, it's going to be $32k OTD for new. If used from private party (assuming no sales tax), I can get one for $28k+ registration, license, etc fee or even less around here at 'For Sale'. $4k is a lot, u know.... I just want to know if I can save $ from sales tax. Another info is that I am going to finance the car, but not 100% finance. I can ask the buyer to report the price exactly as the amount I finance, and I pay the difference with my cash...
#3
In New York when you go to register the car they will ask you for proof that you paid the sales tax or they will charge it on the spot. It doesn't make a difference if it's new/used/private party or dealer.
#5
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Yes when you register you will be charged sales tax. However the amount that you are charges sales tax is based upon the sale price declared on the title transfer......
#6
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for IL, buyer has to pay sales tax. not necessarily the sales tax rate for everything else though...goes by the tax form. for example, since my car was over $15k and the actual price was between $20,000 and $24,999, i had to pay $1k in sales tax.
#7
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Originally Posted by CrazyPhuD,Jun 16 2005, 06:28 PM
Yes when you register you will be charged sales tax. However the amount that you are charges sales tax is based upon the sale price declared on the title transfer......
people generally write lower amounts to skirt sales tax. Just make sure it is reasonable, because you don't want any investigating.
technically, writing a lower amount IS tax fraud; it is somthing that you can get jailed for. just something to consider.
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#8
In California, you will have to pay sales tax. When you go to register the car, they will take the price from the Bill of Sale to calculate sales tax. If you, and I highly frown on this, and the previous owner put a lower price on the Bill of Sale, you will pay less tax.
#9
Originally Posted by gameson,Jun 16 2005, 10:28 PM
But how do you prove it if you buy from private party?
A private party would most likely not have an ID#.
#10
That means I am set to buy a new car then... Damn government, if the car changes hand like 3 times, the government can eat 3 sales tax...
How about older car, say like 04 or 03? Still same thing?
How about older car, say like 04 or 03? Still same thing?