hey guys, i'm buying a s2k from a lady who still owes Honda Finance on loans. basically, i would pay her, and then she would pay Honda, and then the title would be sent to her. She would then sign it and send it to me? That seems like a really ineffiecient way to handle things, is there something easier? i did a search and some people recommended i make out 2 checks? one for the loan and one for the difference. i guess that would help on the bill of sale, cause then i can put a lower amount to help with taxes? anyway, anyone know how to deal with Honda Finance on this? it's different than going into a bank. help =)

 

Most states will make you pay sales tax based on the car's book value or the selling price, which ever is higher. You need to fill out a form detailing why the car is worth less than current book/market value for tax to be assessed on the selling price, if it's lower than book value. "I got a great deal" won't cut it

 

she has to sign a release of liability form from your local DMV before she can hand the keys over to you. That basically states you now own this vehicle. As far the as the pink slip goes you are going to have to wait for that to arrive and have her transfer that over under your name.

 

in NM it's based on the sale price only, not the value. I believe many states are similar. If I were you, I would try to get directly in contact with Honda Finance... maybe they can give you a procedure to follow.

 

tell the state you got it as a gift from her. no tax =)

 

Thats because you don't have sales tax in new mexico. You're paying an excise tax of 5% of the sale price.