Private auto sale

[AaronM]

Financing is secured, purchasing a vehicle from a friend. What is the process for obtaining the title? Sales tax? Anything else I'm forgetting? Thanks!

[Jarrod32]

Seller should have the title and will sign it over to you. You said financing is in place; if you have a lender, they will require a lien on the title. If you have a lender/bank, the best option would be to do the whole transaction in the bank where the title can be signed over. You will then need to go and transfer the title, though your lender may do this. That is where sales tax will be paid...when the title is transferred and/or the car is licenced in your name.

[AaronM]

I appreciate the speedy reply! The lending institution is located too far away fromt the place where the sale will take place. Instructions were fairly vague, but what I took from it was the lien will become applied when I go to the DMV with the seller to sign the title over. It was my impression that at the DMV the lien would be applied and sent back to the lending institution. Is this correct? I'm more or less looking for a bit clearer direction here. Thanks!

[TooTallTom]

Are DMVs open at the moment? I assumed that they wouldn't be, but you know what they say about assumption...

[AaronM]

Nope. However there are a few independant locations open. The one in Roseau comes to mind, I'm sure there are others as well.

[LightningBG]

If its someone you know, and you trust each other, you both dont need to go to the DMV.

He can just sign the back (I think its the back), then you sign a little tear off piece and that is the "receipt". Also not a bad idea to write up a simple purchase agreement that you both have a copy of.

From there, its between you and your lender how they want to get the title.

I think they ask at the DMV if their is an "interest" on the car (lien) on the vehicle. From there I would imagine they will want the company name, phone # and address, so they can send the title to the company.

[AaronM]

Thanks for the info. Would the sales tax be paid at the DMV?

[LightningBG]

Thanks for the info. Would the sales tax be paid at the DMV?

Yes, sales tax is paid at the DMV for the amount you "say" you paid for the vehicle.

[dfv87]

Sales tax may not apply depending ont he age of the vehicle... I think afetr 10 years they don;t charge it.

[AaronM]

It's an 2008, so I don't think that rule would apply. Thanks for the info though!

[fiskyknut]

Hey Aaron shoot me an e, I can't find your addy anywhere's on my confuser!

fiskyknut at yahoo

[Whoaru99]

Yes, sales tax is paid at the DMV for the amount you "say" you paid for the vehicle.

Yeah, but many/most of them are wise to the 3 year old, $250 vehicle. Especially if you hand them the loan paperwork to provide the lien holder's name.

If the price given seems unusual to the registrar they're supposed to give you a declaration to fill and sign stating why the price is not in line with typical going rate.

[LightningBG]

Very true.

[winniewalleye777]

Okay so I am selling my 1998 GMC Sierra. I went to the DMV HSOforum and I see that if the vehicle is older than 10 years, AND it sells for under $3000, then the tax is a flat $10. I am asking around $3500 for the pickup. What is the best way to get around the sales tax? I probably will not know the person I end up selling the vehicle to. Thanks for the help!

[Tator2k]

Sell it for $3000 and ask for a $500 donation.

[jac714]

What do you care about the tax? That will be paid by the buyer when they title/register the truck. You do not have to pay any tax on the transaction, you already paid the sales tax when you bought it now it is the next buyers turn.

[Pat K]

The law is LESS than $3000.00. $3000.00 still gets taxed, you have to claim you paid $2999.99 or less. My son learned this the expensive way.

[Whoaru99]

Again, what is "claimed" is somewhat subject to the scrutiny of the registrar. If they think it's a bogus price you may be asked to fill out and sign a form saying why the value of the vehicle is low.

[Ebiz]

Quote:

Okay so I am selling my 1998 GMC Sierra. I went to the DMV HSOforum and I see that if the vehicle is older than 10 years, AND it sells for under $3000, then the tax is a flat $10. I am asking around $3500 for the pickup. What is the best way to get around the sales tax? I probably will not know the person I end up selling the vehicle to. Thanks for the help!

Why would you have to care, you're not the one paying it?

[NCLaker]

Probably already know this - Before you hand over they money, always make sure the owners title does not have a lien on it or has the lien release paperwork. If it does not the DMV will not transfer the title.