As you can probably guess, i'm in the process of looking for a new 'stang. I'm currently looking at 01 cobras, mach 1s, and of course, terminators. I'm curious how sales tax works. Does anybody know states that don't have tax? Or if you buy from a private party, can you get around the tax somehow? Any guidance would be very helpful, thanks.
sales tax on used cars
- Thread starter flyboy86
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CobraRed_96_GT
Active Member
you have to pay tax on a private party sale. But it's not like there's a receipt. If the seller is cool he can write down that he sold it to you for 5k or so, but you'll have to fill out a form at the DMV when registering the vehicle that describes why it's so much under KBB. Rust/engine trouble are both good reasons to sight that they can't call you on.
yeah. no way of really getting around it. you can do what cobrared says but it all depends.
For example my 2003 gt was 12.9k and I think tax, title, and license pretty much added another 1K onto the price. That was at the IL tax rate of around 6.5%
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States
Theres some exact numbers
For example my 2003 gt was 12.9k and I think tax, title, and license pretty much added another 1K onto the price. That was at the IL tax rate of around 6.5%
http://en.wikipedia.org/wiki/Sales_taxes_in_the_United_States
Theres some exact numbers
isjoining
New Member
delaware doesn't have sales tax i think, but if you dont live in the state you're going to pay tax anyways.
The VA DMV doesn't give you any problems. On all the vehicles I've bought I've told them that I bought it for $1. I just tell them that I got the car from a family member, who sold it to me for $1. You could always say the car was a gift as well, but that usually incurs a decent tax as well.
Depends on the state laws I think... I got SCREWED on mine. I went to a surrounding city to buy my car for the lower tax rate (6.3%). When I went to register and tag the car in my home city where the tax rate is 7.8%, I had to pay the difference in tax when I tagged it. So they wanted 1.5% EXTRA, I wanted to cry....
blurred10
New Member
In Texas they have this new thing called the "presumptive sales tax" which is tax based on the value of the car by the year and milage regardless of what you paid for it.
They wised up to everyone cheating the system. You can still cheat a little by claiming it has higher miles than what it really has.
That lowers the value of the car and in turn lowers your overall tax. Tax rate is still 6.5 I think.
They wised up to everyone cheating the system. You can still cheat a little by claiming it has higher miles than what it really has. That lowers the value of the car and in turn lowers your overall tax. Tax rate is still 6.5 I think.Similar threads
