After 1 1/2 years of saving and research I am finally ready to buy and will be looking at a 2003 with only 3,000 miles this weekend, seller is asking $26,900 which seems a good starting point. All that aside, I am trying to save a couple of grand in taxes by buying from a private party and this is the first used car I have ever bought. My question is, am I really dodging the tax-bullet here or just putting it off until later. I suspect each state is different and I am not seeking any legal advice, I just would like to read about some other S owners experiences that have bought used. Much appreciation, Jeff.

 

In NY it is really hard to get away without paying them. If buying a vehicle from a private party the buyer will pay taxes on the book value of the car when they register it. Good luck in your state.

 

It really depends on the state that you live in. If you're in Gainesville, GA, then you're in luck. In Georgia, if you buy a used car from an individual, then you don't have to pay sales tax. If you buy a used car from a stealership, then you do. Call the DMV where you live and get the scoop.

 

fwiw, I got an 04 with 3k miles for $28k, so you may try to talk the guy down or find an 04. With winter coming, time is on your side, afterall.

 

I paid $26k for an 03 with 3k miles

 

Pretty much what I am shooting for, hopes are high on this one.

Thanks to all for the replies. Bret, I do live in GA but will be buying the car in NC, so I have some checking to do. If you see a post that features a big sh*t-eating-grin next week, you will know things went well.

 

good luck on it dude!

 

For private party sales, you usually pay the sales tax (if there is any) in the state that you're registering it in.

 

You need to verify, but I'm pretty sure that you won't have to pay sales tax. You will have to get the car retitled in Georgia. At that time, you may have to prove that it was a private party sale, so be sure to have some sort of bill of sale. The ad valorem tax will be due by your birthday. However, if you purchase the car 30 days before your birthday, you don't have to pay the ad valorem tax that year. Case in point, I purchased my car on December 6 2002, but didn't have to pay the ad valorem tax until my birthday on December 8 2003.

 

Now, keep in mind that this year (and next) you can choose between deducting either your state income tax OR your sales tax from your federal income tax return. Depending on how much you make/how much you have to pay in taxes, it might not be as bad as you think even if you end up having to pay sales tax on the transaction.