Taxes/title registration please

[dcannon]

As I understand, private sales often get reported to the DMV as a fraction of the actual cost as to avoid paying taxes on say, $20,000. I am wondering on the consequences if any for fibbing to the DMV. Lets say the car is stolen, would the insurance company go to the DMV, find out what you paid, and use this as replacement cost?

Thanks in advance

DC

[TerryH]

Insurance value is not determined by what you paid for the car. Insurance companies use comparables for typical cars. If it's a Porsche you may want to consider collector car insurance with an agreed value.

[GothingNC]

Here in NC you pay 3% taxes on the sales price if you purchase the car through a dealer.

Private sales are taxed at book value so I just had to pay $48 in taxes when I purchased my 82 Targa plus the title fee.

The state values the car at $4,800 for annual property tax purposes.

[racer]

Insurance doesn't go to DMV. They go to the "blue book" value unless you have a stated value policy. Insurance doesn't care what you told DMV. DMV only cares from a Tax collecting standpoint. Since DMV is a STATE organization, they will obviously vary, so check with your local DMV for accurate information. I would suspect that the "minimum" tax would be based upon a blue book value, so as to equalize and under or over reporting of paid price.