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makorider

regestering a new to you used car in Jersey...Fact or Fiction??

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So, my car shopping continues. Got close on pulling the trigger with one, of course sales manager gets pulled into it....I ended up saying, yes, but I can save a grand right off the bat with a private sale at Motor Vehicles.

 

He basically said the days of paying tax based on the sale price written on the back of the title are over....they will charge you according to blue book.

 

Fact or Fiction??

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To clarify, Its not like I'm going to put down $500....but if its 30-50% of blue book, are they going to deny it or come back at me later??

 

Who are they to know the actual physical condition of a used car?

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View PostTo clarify, Its not like I'm going to put down $500....but if its 30-50% of blue book, are they going to deny it or come back at me later??

 

Who are they to know the actual physical condition of a used car?

 

I don't know. I registered a used car 2 years ago and they didn't blink at the sale price. Didn't want any substanciation, didn't check blue book...just processed the paperwork.

 

Besides, it's not DMV that charges the tax...they just collect it. They couldn't care less. The Tax people, on the otherhand, might feel differently, and from what my CPA tells me, they are ramping up enforcement to make up for budget shortfalls.

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I had a guy come in recently (last month) to get docs notarized, because the State said he didnt put down the correct value of the used car he bought.

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The theory behind this practice is rediculous. Can you imagine buying a product from a company that is going out of business and paying below cost. Then getting to the cash register and being charged sales tax on the the true value of the product. Show the paperwork . The burden of proof is on them. There was a story a few years back on t.v. regarding this. It turns out there are like two guys that take care of this for the whole state, they look at the sale price and send out hundreds of letters hoping people will send more money. Only in New Jesey.mad.gif

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Here in MA you pay sales tax based on either the purchase price or the book value and of course they take whichever one is higher. So even if you get a killer deal on the vehicle you still get taxed on the higher amount.

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FACT - The DMV does check if the vehicle is sold/taxed at around blue book price.

 

My buddy bought a 93 Wrangler and the seller wrote that he sold it for 1000 bucks, (when it was actually like 7 i thnk?)... about 3 months later my buddy got a letter in the mail saying to prorvide a sales reciept and or provide proof a valid reason that the car was sold wayyy below blue book.

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