Is getting someone to buy a used car without lying about the value a fool's errand?

[Tanquen]

A little frustrated after spending an hour and half with a guy that "really wanted the car". He wanted me to say it was a gift for $10k.

I told him before he came I was not willing to move on the price right now. He of course wants to pay $8.5k less and then I give in and ok $3k less because I don't want to do this again. Then he wants me to lie and say he is a friend and that I gave him the car for $10k.

Is he going to give me the taxes I paid on the car back?
Is he going to help me out with the new income tax I'm gongin to pay again on the same money?

He said he could get one from a dealer and get a 1 year warranty. Ok, and then he would pay the tax and not get the free supercharging and....

Do you need to put in the ad that documentation will be legal and accurate?

So stuff like this in forums not ture? The DMV won't say anything if a "friend" sales you his $100K for $100?
"If you buy a car from a private individual, the state assumes that you paid the fair market value based on Edmunds or some other standard assessment guide. If the car has exceptionally high mileage or is especially rough, you can appeal the value when you register your car."

I felt like telling him to get a bottle of whiteout and do as he likes.

 

[HankLloydRight]

Don't do it.
He just wants to pay little or no state sales tax. If he wants the car, tell him the the Bill of Sale will be accurate or you'll find someone else.
By documenting the car at a lower value than the actual sales price, you are committing tax fraud.

The DMV won't say anything if a "friend" sales you his $100K for $100?

Depending on the state, if the value is way way out of line they can charge the buyer fair market value. So yeah, $10k for a $100k car, they'll flag that in an instant.
But if you wrote up $90k for a $100k car, they probably would not.

 

[glide]

Don't do it.
He just wants to pay little or no state sales tax. If he wants the car, tell him the the Bill of Sale will be accurate or you'll find someone else.
By documenting the car at a lower value than the actual sales price, you are committing tax fraud.



Depending on the state, if the value is way way out of line they can charge the buyer fair market value. So yeah, $10k for a $100k car, they'll flag that in an instant.
But if you wrote up $90k for a $100k car, they probably would not.

I believe every DMV in the country is on to that scam now and are all using NADA/Blue Book values for registration purposes.

Either way OP, tell him to pound sand. He’s a stranger. No benefit to you lying for him.

 

[C4sxm5]

I have had buyers ask me to do this all the time. I would tell them the sale price will be left blank and fill it out as you want. When I fill out my release of liability form (ca) I always put the accurate sale price so it's between buyer and dmv at that point. If they catch him the transaction is complete and you didn't commit any crimes.

Either way I bet buyer would have backed out. Sounds like he wasn't serious either way.

 

[Tanquen]

I read in another thread that some states don't even have a spot for the sale price they just look up the fair market value and if you have a good reason you can ask for an exception. Like the car is really betup and not worth even the low end of the fair market value.

He even told me that I should have put that in my ad. I guess I’ll just bring it up on first contact with folks.

No wonder he really wanted the car, in his head, he was going to get it for $5k under KBB and not pay any taxes.

 

[Michael A]

I did this once 15 years ago as a buyer, eventually the DMV saw that the loan amount was higher that what I claimed I paid, they sent ME as a a buyer an additional bill about a year later.
I wouldn't mess around with this anymore as the DMV forms have you and the buyer signing by penalty of up to $10k could be levied.

 

[Tanquen]

What if they want to get a loan for the car? I read something that said the bank will want the title first? What if there is not bank branch here?

 

[HankLloydRight]

What if they want to get a loan for the car? I read something that said the bank will want the title first? What if there is not bank branch here?

If a buyer wants a loan, the transaction would happen at the bank, and you'd get a bank check and hand over the title and a bill-of-sale with the proper sales dollar amount. If a buyer is getting a loan, there's really no way for them to easily change the documents to avoid paying the sales tax, which is what your buyer wanted to do.

If there's no bank branch, never hand over the signed title to anyone in hopes that you'll get your money after they get the loan.

 

[Tanquen]

Yeah, I'm not put anything in my ad but folks that I actually get to the point of calling. I've given them the spiel. I'm not going to commit tax fraud.

These folks contacted me yesterday and wanted to see it first today but then changed it to last night. I wonder if they're worried about interest rates going up? They are a pair of school teachers from Sacramento and they use a school employee credit union, that only has branches in Sacramento. I found the credit unions website and they have a breakdown of how it's supposed to go.

So we would meet there like you said and fill out the documents and then they would cut a check. They did ask for a copy of the title to get the process started. They seemed legitimate and that didn't seem dangerous so I did do that for them, I didn't want to but sometimes I am too paranoid.

If everything works out I have to drive up to Sacramento to sign the paperwork, get payment and then they have to drive all the way back to get the car.

I guess being at the bank and seeing them create the check is as good as it gets and I couldn't deposit it with my phone but the transaction with my bank probably won't be official for a few days.

I found one guy that said I should have gotten a deposit in case they got home last night and decided they didn't want to get the car for some reason. I'm not really sure how that would work.

We'll see what happens.

 

[Tanquen]

Also, their Bank asked them to get a Reg 262 DMV form. You have to get it from the DMV and it sounds like you only need it if an attorney is buying it for you or the original title is missing. ???

" For example if power of attorney is required, or if the title is missing, or if there is not enough room on the Title for any required information. REG 262 includes the Odometer Disclosure Statement, Bill of Sale, and Power of Attorney (POA)."

Maybe the Bank just likes it because it's an all in one document on special paper from the DMV?

 

[Super_Popular]

Every person from WA and CA that has wanted to purchase my X has asked the same thing. Seems pretty common.

Cant say I blame them.

 

[xerandin]

Standard Presumptive Value is a rather popular mechanism to ensure SOME minimum tax is collected irrespective of purported sale price.

Don't do this. Make sure the buyer knows about SPV. If they still insist, I'd find a new buyer.