California DMV Questions

W911inGarage · 03-10-2004, 06:23 AM

I recently purchased a vehicle from a private party. The seller filled out the release of liability will the full sale price. I was going to get the car registered today.

Does the DMV cross refference the amount on the release and the Title?

Thanks

makaio · 03-10-2004, 06:39 AM

They could, but not usually.

juanbenae · juanbenae's Garage

my understanding is that the DMV's computer system is much better than in years past. not that that answers your question but consider this; the reduction of registration cost that arnie enacted was supose to take a month to hit the bills being mailed, it took a week for the bills to be gotten back to the 1/3 cost. does this answer your question, doubt it but it may demonstrate that they are getting a handle on it...

TMH · 03-10-2004, 06:52 AM

Quote:

Originally posted by W911inGarage
Does the DMV cross refference the amount on the release and the Title?

Whether they will or they won't due to resource limitations and archaic systems is unknown. Bottom line, however, is that they can do it, so you have to be careful.

Someone once told me a story about when he traded vehicles with a friend: The friend wanted a truck and he wanted a car. They estimated the values of the vehicles to be about equal, so they did a straight trade. Turned in all of the change in ownership paperwork, and everything was fine... Until almost 2 years later when the DMV came back to both of them requiring that each estimate the value of the vehicle(s) which changed hands, and pay the appropriate tax on them.

Taxes and fees keep the DMV funded. Unless you work out a deal with the seller as to what he puts on the Release of Liability, I don't think I would chance it.

Tom

Crash94536 · 03-10-2004, 07:00 AM

I don't think they do a check or a cross reference and you can save a lot of cash by not reporting the full price of a transaction. For those of you not familiar with Calif DMV you are required to pay sales tax on used vehicles when title is changed. F**king ripoff.

I have heard some people claim the DMV is cracking down on just that one thing, people lying about the transaction price just to get away with not paying as much in sales tax. But there are so many people still doing it. I will not mention any names but a "friend" bought an 84 911 for $14000 and instead of haggling over the sales price we -oops- I mean my friend had the seller write the bill of sale for $3000. That way my "friend" saved about $900 in sales tax and the seller still received very close to the sales price and everyone was happy (except for the "Governator").

If the seller has already written the bill of sale information on the back of the title paper, I probably would not try altering the sales price. Not worth the legal hastles if they question it. Usually I try to make that part of the negotation with the seller. If that has not been filled out then it is unlikely DMV would question it as long as the price looks believable. When my -friend- went in for his $3000 911 he said "the car needs some work". There was no question.

addictionMS · addictionMS's Garage

I have imported a vehicle from Canada and I too have an experience where years later the fact that I was missing a letter from Dodge stating the truck met EPA standards all of a sudden showed up on my renewal, so it may take some time but do you want to get caught.

Just ask Martha about pay me now or pay me later and the differnce in costs.

Jim

CHILI · CHILI's Garage

Eerg! This is such a sore subject with me. What ever happened to "an item can only be taxed once?" I've never understood why we have to keep paying "tax" on cars. If I sell you my computer, do you have to pay tax. No! Why are cars different. Drives me nuts. As for the funding, I thought that's what part of car registration goes for. And that's another sore subject with me.

Anyway, sorry for the rant. Just had to get it off of my chest. BTW, was the owner Mr. Goodietwoshoes, or something?

Leader · 03-10-2004, 08:55 AM

It's my understanding that a reported sale price that is outside the "normal range" will trigger a closer look by the DMV. So, if you buy a used 911 for a reported $3000, that would likely send the DMV into action.
Does the DMV match up the seller's release of liability statement with the buyer's new registration info for sale price agreement? I'd doubt they do it every time, but I'd be surprised if they didn't check a certain percentage.
Since they could conceivably "get you" eventually, why risk it?
And as far as why we don't pay taxes to the state when we sell a computer to a friend - computers don't travel on state-maintained highways. I agree it's nuts to pay sales taxes multiple times on the same vehicle, but the state does regulate automobiles and their use and that costs money. Even if some of your automobile sales tax dollars go into the General Fund, most go right back to the highways and roads.

W911inGarage · 03-10-2004, 09:02 AM

I am thinking to be just honest, pay what is due.

911ctS · 03-10-2004, 09:17 AM

F that... Try to screw the DMV in every chance you get. Hell, they make money every time a car is sold...thats Bull$h!t.

elbean · elbean's Garage

I agree. the only thing that can happen is you have to make up the difference and pay a fine that could exceed the savings you want to save, ask me how I know!!

It's not like you will go to jail.
As long as the back of the pink slip says what you need it to you are probably safe.?
BTW what price difference are you talking about.

Rick Lee · Rick Lee's Garage

We have a similar situation in VA. When I bought my Carrera, I did not get a bill of sale and did not fill in the amount on the back of the title. When I told the lady at DMV, she said they were gonna make me pay sales tax based on what the state thought the car was worth, even though that was well above what I really paid for the car. She said unless I had a bill of sale, I was SOL. Then she told me to take this blank bill of sale form, get out of her sight, she didn't care who wrote what on it or signed it and then to bring it back with whatever sales price I wanted. I figured since the state took me for a liar when I gave the real sales price, I might as well be a liar and use a much reduced sales price - or something like that.

vash · vash's Garage

ya gotta, discuss two prices when you buy a used car from a private seller. the selling price and the damn price you are going to put on any paperwork. i mean, i have only met one person that walks the straight line....all others do not mind leaving the space blank. anyway of approaching the seller with a sob story? new release of liability in hand?

cliff
good luck, if you cant change the price, i wouldnt mess with it. DMV workers are unique bunch. who knows, what gets their panties all bunched up.

techweenie · techweenie's Garage

I'm shocked, SHOCKED! To find there is such deception going on!

A certain person I know avoids all the ethical issues by getting the seller to leave 'buyer' info blank. In some cases, the cars he buys & sells have changed hands 2-3 times by the time the DMV is notified to update registration & collect tax.

Not every seller is sufficiently confident to let you do that, though.

Pete000 · 03-10-2004, 04:09 PM

Call the Porsche dealer and ask how much they would buy your car for and that should be a pretty low number and tell the DMV thats what you got it for...If you claim too low they can get fussy and look up the actual wholesale value and ask for an apraisal of your vehicle which might turn up to be much higher than you actually paid.

vash · vash's Garage

my friend bought a 2000 motorcycle and being really cheap, put down something like $2500 on the bill of sale. the DMV lady asked to see the bike. lucky we anticipated a problem, with his cheepA$$, fill in the blank moment. we removed all the body work and left it in the garage. the bike looked like crap warmed over. we said it was dropped in a high speed run. she bought it! i have never been asked to produce a vehicle before. we got lucky.

Zeke · 03-10-2004, 05:18 PM

I wish I could scan the letter I received fron CA DMV on the 356 I bought and sold six months later w/o ever registering it. The PO sent in the release with the full amount. I didn't even have the car any longer when I paid 8 1/4% tax, interest and penalties! Tell me they don't check.

1973911s · 03-10-2004, 05:43 PM

The seller left the back of the title blank, and I am not sure what he put down. I will declare what I paid on the car.

Sure it would be nice to keep $500 extra bucks in my pocket, but is it worth the hassel?

Michael

john70t · 03-11-2004, 06:28 AM

Leaving the buyer info blank is like setting yourself up to go to jail.
Suppose the buyer sells it to a third party who fills it full of beer cans and then abandons it after plowing into a row of expensive cars. CYA (cover your a)

glee911 · 03-11-2004, 06:59 AM

I also live in CA and my bodyshop guy (who is well connected inside the DMV) recommended this strategy: 1) have the original seller sell the car to someone you trust and then transfer the title back to yourself at a lower price. I doubted this strategy because isn't this "jumping title". I was under the impression that once the car is titled in someone's name then sales tax must be paid before the title can be reassigned unless it is a dealer. Can someone clarify this? He has executed this strategy successfully many times before but is it because of his inside connections. Opinions?