Buying a car????

[bradford702]

My wife and I are buying a car from my MIL and I am not quite sure how some of this works. She has a note on the car as will we. I figure the banks know what to do on their side. The question is who takes care of the title transfer and do I pay tax on the purchase?

 

[texascoder]

My experience at both buying and selling cars is that the buyer handles everything. And yes, you pay tax on the purchase price that you report. Of course, that might not be the actual selling price

Just sayin' that to save a little tax money you could report a lower sales price is all. I'm pretty sure that there's a form online on one of the state websites that you can fill out to do the title transfer, etc. You just need to take it to your local tax assessor's office and pay the sales tax and transfer the registration, etc. One complication might be that your bank will most likely need to exchange the title with your MIL's bank, but I'm sure they know how to do that.

 

[bradford702]

So I take my bill of sale to the tax office and pay the taxes there? along with the title transfer fee?

Thanks

 

[texascoder]

Here are a few links that google found for me:
DMV website FAQs Click on the "What steps should I take when I sell my vehicle?" link and it has some information about what you'll need to do (even though you're the buyer)
Link to Vehicle Transfer Permit
Link to title and registration forms

Normally when you buy a car, the seller will fill out his part of the title and sign it and you'll take that to the county tax office along with the bill of sale, and fill out a title transfer form and also register the car and pay the sales tax. But since it's really the two banks that will be exchanging the title, I'm not 100% sure what needs to be done. Your best bet would be to call your county tax office and ask what exactly you need to do to complete the sale and which forms need to be filled out, etc.

 

[Bernard]

In reply to:

---

---