California DMV

[Old 356 guy]

I’m buying a 2019 model 3 from a family friend and the price is absurdly low. Can the California DMV contest it and charge a going rate value.

 

[glide]

Yes. On a “$1 sale” they can charge you tax on the blue book value.

 

[TomT]

I lived in California for many decades and the answer is yes. They can, and they often do, if the value is not reasonable..

I’m buying a 2019 model 3 from a family friend and the price is absurdly low. Can the California DMV contest it and charge a going rate value.

 

[SlimJim]

Yes in my state also. Otherwise everyone would just put $1 and evade tax.

 

[The_Observer]

"Reasonable" value is what you are going for. DMV is not going to let it fly if the Model 3 costs $10,000 for you to buy from your friend, even if that's in the records.

 

[Uncle Paul]

Lots of buyers attempt to put down a really low purchase price, to reduce DMV fees. California is well award of that ruse, and will often use an "implied" value to your car.

 

[TomT]

Also, if California suspects that you are purposely trying to avoid proper fees, that can hit you with a negligence fee. A friend of mine got hit with such a 10% fee...

Lots of buyers attempt to put down a really low purchase price, to reduce DMV fees. California is well award of that ruse, and will often use an "implied" value to your car.