| Author |
Message |
    
lseltzer
Citizen
Username: Lseltzer
Post Number: 1609
Registered: 5-2001
| | Posted on Wednesday, June 25, 2003 - 8:01 am: | 
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I recently put a car up for sale in the classifieds section. I've never done a private sale before. I know that on the title there is a form to fill out for transfer, but what else must one do? Do I need to collect sales tax? Do I need to notify anyone? Is the money income? |
#9Dream
Citizen
Username: 9dream
Post Number: 420
Registered: 12-2002
| | Posted on Wednesday, June 25, 2003 - 9:44 am: |
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I'm pretty sure you do have to collect sales tax. You also have to remove the plates and cancel the registration, and notify the DMV of the change in ownership. The buyer will have to register the car. I'm not sure whether the money is considered income; I'd think it's a partial return on the money you spent to buy the car in the first place. |
algebra2
Citizen
Username: Algebra2
Post Number: 1043
Registered: 5-2001
| | Posted on Wednesday, June 25, 2003 - 10:04 am: |
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lseltzer -- so did you get many responses? I am going to be selling a classic car and will post it here -- I'm a little nervous as I've never done this before. BTW -- it's a 1963 Buick Riviera in MINT condition. Any interest ..... ?
bronjones1@aol.com |
us2innj
Citizen
Username: Us2innj
Post Number: 754
Registered: 5-2001
| | Posted on Wednesday, June 25, 2003 - 10:32 am: |
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When you sell a car second hand, you present the buyer with a bill of sale and the title. The buyer then takes those two things, gets insurance, and takes all three documents to DMV. The buyer will then pay the sales tax on the price you have listed on the bill of sale. You do not collect sales tax.
You need to remove the plates from you car, and surrender them at DMV.
A second hand car sale does not get added as income for the sellers purposes. |
bobk
Supporter
Username: Bobk
Post Number: 3163
Registered: 5-2001
| | Posted on Wednesday, June 25, 2003 - 10:48 am: |
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Larry, my recollection is similar to Us2's, although I am not sure that sales tax is due on a private sale, although this isn't your problem one way or another. Also I believe you have to surrender the registration as well.
Keep a copy of the title and don't under any circumstances allow the buyer to drive off with the car with your plates still on it for insurance and liability reasons, even if it means going to the DMV with the purchaser for the transfer.
BTW and totally off subject, what did you finally buy? |
sportsnut
Citizen
Username: Sportsnut
Post Number: 446
Registered: 10-2001
| | Posted on Wednesday, June 25, 2003 - 1:49 pm: |
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Larry,
Sales tax is absolutely due on the car and us2innj is correct it is the purchaser's responsibility when he registers the car.
One caveat - the proceeds from the sale are not included as income unless you used the car for business purposes. |
lseltzer
Citizen
Username: Lseltzer
Post Number: 1610
Registered: 5-2001
| | Posted on Wednesday, June 25, 2003 - 2:15 pm: |
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Thanks everyone. This all makes sense.
Bob: I bought a 2003 Honda Odyssey, loaded up. Every minivan I looked at was disappointing in one way or another, but the Odyssey was good enough and this will be my fourth Honda. They give you a card to puch and the 10th car is free! |
bobk
Supporter
Username: Bobk
Post Number: 3164
Registered: 5-2001
| | Posted on Wednesday, June 25, 2003 - 2:55 pm: |
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Larry, good choice and enjoy. Let's see one car every eleven years....Do yah think you will live long enough to collect.  |
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