U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Automotive
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 12-31-2013, 06:01 AM
 
11,451 posts, read 48,443,775 times
Reputation: 15730

Advertisements

Quote:
Originally Posted by ukrkoz View Post
You must be very special. Neither I never cared, nor anyone else I sold to ever cared. Say, I am selling car for a friend that is ESL? What's wrong with that? Who cares.
Nothing wrong with that approach, except that by definition that makes you a dealer operating without a license.

Who cares? the state DMV, and if you sell the car to a buyer from out of state, the Feds get interested in your illegal activity, too. All you need is one buyer who is unhappy with their purchase to complain to the authorities, and you're gonna' get asked a lot of questions that you won't have good answers for. Even if the violations are minor, the legal expenses you'll incurr to minimize the situation will be a lot of money compared to what you made from selling the one car. You'll likely be triggering a tax audit, too, and the authorities tend to overestimate how much you were making unreported on the side and demand their tax/penalties/interest payment. It's then up to you to prove them wrong, and that takes accounting time/expense. The authorities aren't playing "nice" anymore about these types of blatant violations of their interests and your money.

As pointed out above by others, this isn't the 1950's anymore. The tax authorities want their money and have the means to investigate you and enforce the system. When you buy a retail car sale, the tax folks have the right to collect and the laws are very clear about your obligations.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 12-31-2013, 06:27 AM
 
Location: NH
3,217 posts, read 2,838,013 times
Reputation: 4529
It also depend which state you live in too. I know in NH all you need is a bill of sale for a car that is older than 15 years and you can get a temp registration for it for 10 bucks. That temp tag is good for 20 days.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-31-2013, 06:29 AM
 
Location: Riverside Ca
22,164 posts, read 27,188,875 times
Reputation: 35212
Quote:
Originally Posted by car54 View Post
That's not always so easy.

Around here, you have to have a "place of business" of at least X number of square feet (commercially zoned office space, not your house), post a bond, get a local business license, the whole can of worms.
Last car I sold I made it clear the car is to be taken out of my name at the time of the sale. Took the seller to the AAA office we did the paperwork and he paid. There is no way I want a car floating around still registered to me. Huge liability IMO. That is just smart business. Expecting a buyer to put a vehicle in their name after the sale is laughable. Most will ride that registration in the sellers name for all it's worth.

Last edited by Electrician4you; 12-31-2013 at 07:46 AM..
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-31-2013, 07:46 AM
 
4,711 posts, read 11,720,895 times
Reputation: 3793
Quote:
Originally Posted by sunsprit View Post
It's illegal for licensed dealers to skip title, and grounds for them to lose their license if they are caught with inventory on the lot for sale that has open titles.
What I meant was that licensed dealers (in Virginia, anyway) do not have to obtain title in their names. They can use dealer reassignments.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-31-2013, 09:52 AM
 
Location: Cole neighborhood, Denver, CO
1,123 posts, read 2,771,394 times
Reputation: 1251
Quote:
Originally Posted by car54 View Post
What you are doing is skipping title. That's illegal most places except for licensed dealers. To get the title in your name would likely incur a sales tax. This is why people skip titles.
^This. If you're into 'flipping' cars, do it the professional way and apply for a dealer license.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-31-2013, 11:45 AM
 
Location: Central Jersey - Florida
3,377 posts, read 13,589,010 times
Reputation: 2252
Quote:
Originally Posted by sunsprit View Post
Nothing wrong with that approach, except that by definition that makes you a dealer operating without a license.

Who cares? the state DMV, and if you sell the car to a buyer from out of state, the Feds get interested in your illegal activity, too. All you need is one buyer who is unhappy with their purchase to complain to the authorities, and you're gonna' get asked a lot of questions that you won't have good answers for. Even if the violations are minor, the legal expenses you'll incurr to minimize the situation will be a lot of money compared to what you made from selling the one car. You'll likely be triggering a tax audit, too, and the authorities tend to overestimate how much you were making unreported on the side and demand their tax/penalties/interest payment. It's then up to you to prove them wrong, and that takes accounting time/expense. The authorities aren't playing "nice" anymore about these types of blatant violations of their interests and your money.

As pointed out above by others, this isn't the 1950's anymore. The tax authorities want their money and have the means to investigate you and enforce the system. When you buy a retail car sale, the tax folks have the right to collect and the laws are very clear about your obligations.
Maybe the OP will get to sell the car without transferring the title to his name. Then hopefully the buyer attempts to register it and finds there is an issue with the title. The buyer then sues the OP who has to return the buyers money and pay court costs. The OP then has to go after the person he bought the car from and try to sue them. POETIC. I don't think the law would go after him for attempting to evade paying taxes and DMV fees, but if they did, more power to them. That being said, I'm not all about the government sticking their hands in my pockets but the law is the law. When one does things right, one has no worries!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-31-2013, 01:24 PM
 
11,451 posts, read 48,443,775 times
Reputation: 15730
Quote:
Originally Posted by exhdo1 View Post
Maybe the OP will get to sell the car without transferring the title to his name. Then hopefully the buyer attempts to register it and finds there is an issue with the title. The buyer then sues the OP who has to return the buyers money and pay court costs. The OP then has to go after the person he bought the car from and try to sue them. POETIC. I don't think the law would go after him for attempting to evade paying taxes and DMV fees, but if they did, more power to them. That being said, I'm not all about the government sticking their hands in my pockets but the law is the law. When one does things right, one has no worries!
Well, we've had threads on C-D about this exact situation. The "flipper" didn't title a car in his name when he bought it, kept it on an open title and his seller disappeared. Only when the flipper sold the car, the title paperwork from the seller wasn't valid and the flipper's buyer came after him for the money ... after having damaged the car that they'd bought. Everybody lost on the deal except the original seller.

Hard way to learn about the legal and "right way" to do business.

When I sell a motor vehicle, I don't want any possible liability trail to follow me. I make sure that I've got buyer ID (driver's license copy) that matches the funds source and an original signed copy of the bill of sale which I can file with my insurance company and DMV.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-31-2013, 01:25 PM
 
2,025 posts, read 3,524,189 times
Reputation: 2526
Some states have a release of title tab at the bottom. The seller fills that out and drops it at the local DMV. If the "sold to" doesn't match the eventual buyer, questions will be asked.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-31-2013, 01:26 PM
 
11,451 posts, read 48,443,775 times
Reputation: 15730
Quote:
Originally Posted by car54 View Post
What I meant was that licensed dealers (in Virginia, anyway) do not have to obtain title in their names. They can use dealer reassignments.
As does several other states as a means of conveyance and paperwork convenience.

The bottom line is that the dealer still has paperwork on the title trail which shows their ownership of the vehicle in a tax-exempt transaction and is not holding a vehicle in their inventory for sale on an open title.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 12-31-2013, 06:06 PM
 
27,750 posts, read 58,084,485 times
Reputation: 22364
Quote:
Originally Posted by Electrician4you View Post
I won't even look at a car that's not registered in the SELLERS name. I don't care how good a price it is. Or if there is no paperwork/ownership title papers
So many problems could be avoided if people followed this advice.

I see it all the time to the point of making a vehcle worthless.

Really, what can a person do if there are title issues, smog problems or back registrations due?

Plus... in my State, unless you are a Dealer, Wholesaler, Salvage Yard or Manufacturer or Trustee settling an Estate... what you are doing is not legal...
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Automotive
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top