New 2022 white on white model X Plaid with 20” wheels, no FSD.
Selling privately for $165k no taxes or fees.
Located in the Bay Area.
Selling privately for $165k no taxes or fees.
Located in the Bay Area.
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2022 MXP White on white for sale
- Thread starter Sheffie
- Start date
What do you mean by no taxes or fees? The buyer will still need to pay taxes assuming he/she is in CA.
It's a private sale, technically a used vehicle but less then 100 miles on it.
I thought in CA when you buy a car privately DMV will collect the taxes when you register the vehicle in your name.
Is there is less than 100 miles, does DMV waive the tax?
Is there is less than 100 miles, does DMV waive the tax?
Mateo83
Active Member
DMV will charge a transfer fee, then the registration when its due.
So you don’t have to pay tax if the car has less than 100 miles. Just the transfer fee and registration when it’s due in a year?
Yes you pay taxes. This car is $23k over sticker. They would tax you on that $165k not $141k so that is about $2k more in taxes. There is a transfer fee at the DMV but minimal. The only thing you are saving IF you live in CA is the DMV registration fee and would not need to pay that until the car becomes one year old. Just offering some facts.
Sorry, didn't mean to mislead anybody, I only meant as a private sale there was no dealer type taxes or fees that would be paid to me.
Mateo83
Active Member
if the title is in hand and just transfers over from private citizen to private citizen.
Mateo83
Active Member
I answered that in post #4. When you buy a used car in CA, if the seller does not collect sales tax at the point of sale, DMV will make you pay up when you register the car in your name.
A good example is Tesla themselves when you buy out a lease. I bought our MS lease and Tesla gave me the buyout price, excluding tax. Our credit union calculated the sales tax based on the buy out price from Tesla. They then cut one check to Tesla for the price of the car and another to CA DMV for the sales tax. The dates of our registration unfortunately never changed, but since it was a car sale that obviously gets registered with DMV, they collect the tax.
There is no way to get out of paying sales tax on a car purchase in CA, unless you claim it was a gift or don't register it. Neither are good choices unless it truly is a gift or you don't intend on driving it.
And I also think they closed the "gift" loophole to only be an immediate family member. When my Son was gifted a car from his grandpa we had to show proof of relationship to the DMV. That was 5 years ago so don't take this as fact as of today.
Mateo83
Active Member
You are comparing / confusing your experience sales between you and and dealer / reseller. I recently purchased a classic car from another individual, paid cash, took my title to DMV charged me the transfer fee of $39, then I got the renewal in the mail later.
You paid tax for the purchase price if you are in Ca and you told them you actually bought the car. EVERY car purchase when title chances hands is taxed. You either put that sale price on the pink slip they handed you (if they owned it free and clear) or a bill of sale if there is a loan. Unless you put $0 on the pink slip then you paid tax on the sale price.
ZenRockGarden
Active Member
Correct. In California, you owe tax on the fully purchase price of any used vehicle (with a very narrow exception on gifting to a direct family member).
It does not matter if the car has 100 miles on it - if it was titled to owner 1 and then sold to owner 2, owner 2 will owe the DMV tax.
The seller here has confused matters by saying no-dealership-taxes. Sure you don't have to pay delivery fee, but that's not the main multi-thousand-dollar tax. The sale, as posted, is for a used car at $165k and the buyer will owe sales tax and registration fees on that full amount (assuming sale is done in California).
It does not matter if the car has 100 miles on it - if it was titled to owner 1 and then sold to owner 2, owner 2 will owe the DMV tax.
The seller here has confused matters by saying no-dealership-taxes. Sure you don't have to pay delivery fee, but that's not the main multi-thousand-dollar tax. The sale, as posted, is for a used car at $165k and the buyer will owe sales tax and registration fees on that full amount (assuming sale is done in California).
You will probably see a tax bill at some time then so don't be surprised. Below is a snapshot of the DMV form that you would have needed to complete to legally not pay taxes on your vehicle purchase. These are the only acceptable instances where you would not have to pay tax on a used car, no matter if you purchased it from a dealer or private party.
You also may want to ensure all of the paperwork was done correctly as there would be more than one fee the DMV would charge. I could be wrong, but only paying $39 in DMV Fees doesn't seem right when buying a used car in CA. You would have the title transfer fee and registration transfer fees at a minimum.
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