hi!
I finally found an S2000 that i can afford and i'm ready to buy it.
The issue is... the guy wants all cash and asks if i want the pink slip labeled as gift.
I was wondering what are the drawbacks to this. I know it will save me tax $$ but is it worth the risk?

I live in California by the way.

 

As a gift meaning you are getting the car as a gift
There will not be sales tax that you have to be responsible on ur end

 

I don't know about California, but in OK it doesn't matter if you paid $100 for a car or $100,000. You will be taxed when you got to change the title on the car for whatever the taxable value is.

I'd look into that further.

 

Virginia will tax you on whatever the Bill of Sale says and not the NADA value.

California is full of Nazi's though, so I doubt you can pull a fast one on them.

 

I was able to pull a fast one on them. I'm in CA (Los Angeles to be specific). I bought a car for $13500 cash. I then told the owner to put $5000 for the sale value. That's what I got taxed for.

Then I insured the car at a value of $13K. No questions asked by registration, IRS, or insurance...

 

When I bought my car, this is what I did

Bought it for $xxxxx
Had a bill of sale typed up saying that i actually bought the car AS-IS for $3000 signed by me and him
registered car, paid taxes on $3000 ($210 in NJ)
done.

Now, if the state ever comes after me (heard this happening before), I show my signed bill of sale saying i bought the car for the price listed, as well as the AS-IS hinting that the car might not have been worth more then $3k, regardless of how it looks now.

Win.

 

just have him fudge the bill of sale or walk. 'nuff said.

 

Plenty of people do this to avoid high sales tax (almost 10% in california)

As long as both of you have supporting stories, there's nothing they can do about it. Even more so if you're paying in cash since there's no paper trail from a check or money order

I bought my car for 16.5 and put down 8k. Almost everyone I know does this lol

 

im in texas, i put down 5k on paper but the registration taxed me for 7k

 

same to me in Texas. they went of the value of the car. so the bill of the sale was moot at that point