Do I need to pay sales tax on used car from private party?
04-01-04, 05:39 PM
#1
Lexus Champion
Thread Starter
Do I need to pay sales tax on used car from private party?
I heard that there is no need to pay sales tax & luxury tax if I buy an used car from a private party..........is that true?
Cuz if that's true than I'll save $4500 on tax buying a car from the private party instead of buying from the dealer.
BTW......I'm in Los Angeles, CA.
Thanks
Cuz if that's true than I'll save $4500 on tax buying a car from the private party instead of buying from the dealer.
BTW......I'm in Los Angeles, CA.
Thanks
04-01-04, 05:41 PM
#2
Former Sponsor
Join Date: Jan 2003
Location: D2'sville
Posts: 13,002
Likes: 0
Received 0 Likes
on
0 Posts
it all depends on the state, I got screwed on sales tax, since I traded my 96 in on the 98 at a dealer, I was only supposed to pay sales tax on the difference, but since I got it from a neighboring state, I had to pay sales tax on the BOOK value of it!!!! Not even the sale price!!
Damn I hate TAXassachusetts!
Damn I hate TAXassachusetts!
04-01-04, 05:45 PM
#3
Lexus Champion
Join Date: Apr 2002
Location: Glued to my desk.
Posts: 3,746
Likes: 0
Received 0 Likes
on
0 Posts
Varies from state to state. In Nevada they use some goofy system of valueing the vehicle. I bought my 95 SC400 for $12k which is about book price. The state calculated the sales tax on almost $19000
. I paid almost $1200 in sales tax when I registered the car.
. I paid almost $1200 in sales tax when I registered the car.
04-01-04, 05:57 PM
#4
Former Sponsor
Join Date: Jan 2003
Location: D2'sville
Posts: 13,002
Likes: 0
Received 0 Likes
on
0 Posts
Originally posted by Vegassc400
I bought my 95 SC400 for $12k which is about book price. The state calculated the sales tax on almost $19000 . I paid almost $1200 in sales tax when I registered the car.
I bought my 95 SC400 for $12k which is about book price. The state calculated the sales tax on almost $19000
. I paid almost $1200 in sales tax when I registered the car.
04-01-04, 07:22 PM
#5
Re: Do I need to pay sales tax on used car from private party?
Originally posted by Lonely Toothbrush
I heard that there is no need to pay sales tax & luxury tax if I buy an used car from a private party..........is that true?
Cuz if that's true than I'll save $4500 on tax buying a car from the private party instead of buying from the dealer.
BTW......I'm in Los Angeles, CA.
Thanks
I heard that there is no need to pay sales tax & luxury tax if I buy an used car from a private party..........is that true?
Cuz if that's true than I'll save $4500 on tax buying a car from the private party instead of buying from the dealer.
BTW......I'm in Los Angeles, CA.
Thanks
04-01-04, 08:20 PM
#6
Lead Lap
iTrader: (6)
Join Date: Mar 2002
Location: South OC
Posts: 744
Likes: 0
Received 0 Likes
on
0 Posts
If you pay in cash vs loan, and can work with the seller (on what is actually paid versus reported to DMV on registration docs) there can be money saved...on fees, tax etc
Pm with questions-
D
Pm with questions-
D
04-01-04, 08:51 PM
#7
Lexus Champion
Join Date: Aug 2003
Location: California
Posts: 1,625
Likes: 0
Received 0 Likes
on
0 Posts
What you can do is have the guy you purchase the car from put "gift" under the selling price. That will clear you from paying the used car sales tax. You didnt hear that from me.... 
Trending Topics
04-01-04, 11:07 PM
#9
Lexus Fanatic
Join Date: Nov 2001
Location: California
Posts: 5,203
Likes: 0
Received 0 Likes
on
0 Posts
Originally posted by MrJohnTan
What you can do is have the guy you purchase the car from put "gift" under the selling price. That will clear you from paying the used car sales tax. You didnt hear that from me....
What you can do is have the guy you purchase the car from put "gift" under the selling price. That will clear you from paying the used car sales tax. You didnt hear that from me....
when i bought my car for cash we just told the seller to write on the paper a lot less than i paid for the car. so i only had to pay (example 4,000 gettting taxed instead of 15,000).
04-01-04, 11:28 PM
#11
Originally posted by Jmai22
i believe if its put under gift don't they take blue book value?
when i bought my car for cash we just told the seller to write on the paper a lot less than i paid for the car. so i only had to pay (example 4,000 gettting taxed instead of 15,000).
i believe if its put under gift don't they take blue book value?
when i bought my car for cash we just told the seller to write on the paper a lot less than i paid for the car. so i only had to pay (example 4,000 gettting taxed instead of 15,000).
04-02-04, 08:53 AM
#12
Do NOT put it as a gift UNLESS you are buying it from a relative that is in on it with you...they WILL check and it could lead to criminal tax evasion problems...not worth it to me.
I would simply work out the deal and settle on a reasonable price based on research from kbb, edmunds, etc...so it will seem legit. The seller needs to be in on it with you...but you could stand to save some considerable dollars. Good luck
I would simply work out the deal and settle on a reasonable price based on research from kbb, edmunds, etc...so it will seem legit. The seller needs to be in on it with you...but you could stand to save some considerable dollars. Good luck
04-02-04, 11:36 AM
#13
Lexus Diva
iTrader: (1)
Join Date: Sep 2001
Location: City of Angels
Posts: 6,951
Likes: 0
Received 0 Likes
on
0 Posts
Originally posted by Lonely Toothbrush
Thanks guys
How much is the tax, 11%? Also how about luxury tax?
Thanks guys
How much is the tax, 11%? Also how about luxury tax?
Sales tax is based upon where you live. Los Angeles county is 8.25%. Orange, Riverside, San Bernadino counties are 7.75%. These are southern California counties around our dealership. If you live up north, I'm not too sure about those. Also, there is no luxury tax anymore. (Besides, there wasn't luxury tax on used cars anyway.)
Thread
Thread Starter
Forum
Replies
Last Post
lexi4darin
CL of Southern California
22
05-23-06 10:55 AM
