[ducatiti]

I am about to sell my bike for around $6500 here in California... Good deal?

But the buyer is requesting for me to adjust the price on the pink slip to cut the cost of taxes on his part.

Is this safe for the seller and do you guys normally do this? First time selling a bike and would like to hear some insights from you guys.

Thanks.

 

[92GTA]

As long as I have all the money first and bill of sale aside from the pink that will hold up in court if there is an issue, do whatever amount he wants even if it's $500 lol. I always do with everything I've ever sold like that just to help out the (EDIT) buyer (/EDIT).

 

[ducatiti]

As long as I have all the money first and bill of sale aside from the pink that will hold up in court if there is an issue, do whatever amount he wants even if it's $500 lol. I always do with everything I've ever sold like that just to help out the seller.

Thank you for sharing. Do yo mean just to help out the buyer?

 

[FuelIsFunToBurn]

I don't know about CA, but here in MA that doesn't work. The DMV looks up the value of the machine. They doin't care what you actually paid for it. Sales tax is based on book value. I have never personally done it, but there is an appeal process. Never gone there myself.

 

[DT996]

Fuel is right, if the selling price is lower than the value by enough to warrant another look, then the current value will be used to assess your tax amount. It really depends on who is helping you at the CA DMV window when you register.

 

[vwbuge]

I have always told the Notary a lowered selling price when buying/selling a vehicle. It is common practice here. In the last few years they have cracked down and done as Fuel says they do in MA. When you sell a vehicle they still ask the selling price and then they compare it with the book value. If it is drastically off the book value they ask why and you fill out a paper stating that the vehicle "needs work".

I bought my Mercedes year ago when the state first started the practice of looking at book value. I paid well under the book value for the car. A few weeks later I received a letter from The State of PA telling me I owed them another $800 in taxes according to the book value of the car. I sent them a copy of the bill of sale (which they should of had) and cleared things up.

 

[92GTA]

Thank you for sharing. Do yo mean just to help out the buyer?

Yup, sure did! My bad lol.

I've also heard that there might be a minimum like $1500 or so, on cars anyway, might also be one for bikes. So that if the pink says less than this amount then they go by current book value as mention.

It would be nice to have a DMV employee respond lol!

 

[J9Fred]

Haven't registered anything at DMV for years now. Always go to AAA for the paperwork. Works well so far.

 

[JackFlash]

It's the same here in TX, you used to be able to get away with just about any amount but now they look it up.

 

[mry999eryk]

Yeah, that doesn't work anymore. You used to be able to put $1.00 but now they just look it up and set the tax base from that.

 

[ducatiti]

I have always told the Notary a lowered selling price when buying/selling a vehicle. It is common practice here. In the last few years they have cracked down and done as Fuel says they do in MA. When you sell a vehicle they still ask the selling price and then they compare it with the book value. If it is drastically off the book value they ask why and you fill out a paper stating that the vehicle "needs work".

I bought my Mercedes year ago when the state first started the practice of looking at book value. I paid well under the book value for the car. A few weeks later I received a letter from The State of PA telling me I owed them another $800 in taxes according to the book value of the car. I sent them a copy of the bill of sale (which they should of had) and cleared things up.

I didn't know that the pink slip needs to be notarized....

 

[slimlim]

My experiences...

I'm also in the Bay Area CA. The last 2 bikes I purchased, the buyers put a lower amount on the slips and bills of sale to help me with the taxes. As long as it is in the ballpark value, you should have no worries.

Specifically, I purchased a KLR650 for $3500, he put it down as $2500. Then I purchased a salvage title 999 for $6400 but we wrote it down to $3500. This was done as recently as two months ago.

Also, I did the transfer at AAA. Did not need to notarize the documents.

 

[Sportskid1]

In CA you pay taxes on the documented value of the sale as long as it is reasonable. If you put $0.01 for the price it will raise flags. Every car and bike I have bought in CA I just documented the sale price as about 50% of what I bought it for and have never hand any issues. When selling I just leave the sale price on the title blank for the buyer to fill in. Just make sure you have a bill of sale showing the real sale price.

 

[manso72]

ive lived in ca. for 15 years and most of my car's or bikes when i bought used i put down "gift" and it will not raise flags... heck i put down gift on my $20000 car and i paid $60 in taxes at the dmv! no worries no red flags.

 

[sleestak]

In California they will NOT look up a bkes blue book value. I just registered a bike in the Spring at the Auto Club and they take the paperwork you hand in and use that price.

No hassle.

 

[fretka]

I generally agree with the above but once I sold a truck to some guy and DMV called me about 6 months later to ask me if he reported the accurate sales price (California).

 

[Badger_WI]

Back in the late 90's here in WI, I bought an ST1100 and wrote down half of what I actually paid for it. A few months later I received an email from the DMV asking for the rest of the tax $$$. I paid it even though the bill of sale stated what I wrote down on the title.

 

[st2lemans]

Is the US the only country that has a sales tax on used vehicles?

Tom

 

[ColinMc]

I don't know, but it's absurd to me....someone bought it new at some point and paid sales tax on it, then each time it gets sold to another owner, every owner down the line pays tax on it...gar

In NY I know I always put some low but value that could be argued to be true....if the bike or car needs lots of work...blah blah. Never had a problem with it. Especially with bikes, they could care less.

 

[1198freak]

I don't know, but it's absurd to me....someone bought it new at some point and paid sales tax on it, then each time it gets sold to another owner, every owner down the line pays tax on it...gar

In NY I know I always put some low but value that could be argued to be true....if the bike or car needs lots of work...blah blah. Never had a problem with it. Especially with bikes, they could care less.

+1. It is ridiculous that tax gets paid again on a used bike...