Used car buying process questions - buying from private seller (Philadelphia: sales, rent)

[Chaptop]

So I'm planning on buying from a private seller this week and figured I'd ask a couple of questions, as I've never done this before.

First: How do I get it home after I buy it? The seller has to remove plates, no? I can't drive it without a plate.

Second: I'm looking at 3 or 4 cars, one from Jersey (which I really like). What do I do in that situation if that's the route I take?

If there's anything else I should know that has to do with this process that would also be a huge bonus.

[Dawne]

You'll have to transfer the title from the seller to you. That has to be notarized, and you'll have to pay state sales tax. You should be able to get a temporary license plate at that time so you can drive it home. If not, if you have a vehicle with a hitch on it, you could rent a tow dolly from U-Haul and tow it home.

[Chaptop]

This is what confuses me - why would I have to pay sales tax if I'm buying privately? i would understand if I'm buying from a dealer, but when I buy privately there's no sales tax to be paid, just title transfer, registration, etc. Am I paying taxes on that or on the car itself? If so I guess it's really not worth it to buy from a guy jersey then...?

[PeeAye Native]

> but when I buy privately there's no sales tax to be paid,
One could make all kinds of jokes here, like 'call someone at the DMV in Harrisburg, and after they stop laughing, ....', or 'what drunk told you that?'

See this: http://www.dmv.state.pa.us/pdotforms...fs-buysell.pdf

SALES TAX

Pennsylvania sales tax is 6 percent of the purchase price or the current market value of the vehicle. (7 percent for residents of Allegheny County and 8 percent for City of Philadelphia residents.)

If a motor vehicle is taken by the seller as a trade in, the tax is imposed upon the difference between the purchase price of the motor vehicle purchased and the value of the motor vehicle taken as a trade in by the seller.

[Chaptop]

Well obviously I have never purchased a vehicle before. I'm in college and 22, and I haven't had the need until recently. I'm used to living in the city and being able to walk/take a bus everywhere, but living in the 'burbs makes that highly inefficient, and while I do live with my parents right now, it's still hard to share a car with my father all the time.

I pressumed that buying a car from a private seller was no different than buying a computer, phone, or any other consumer good.

So no matter whom I buy from, I am paying sales tax?

[MeinGlanzendMotorrad]

Originally Posted by Chaptop

Well obviously I have never purchased a vehicle before. I'm in college and 22

I bought my first car at 18 in high school, my first new car from a dealer at 19. Just being in college and 22 doesn't make it "obvious" you've never bought a car before.

I pressumed that buying a car from a private seller was no different than buying a computer, phone, or any other consumer good.

So no matter whom I buy from, I am paying sales tax?

I hate to break it to you champ, but you're supposed to be paying taxes on everything you buy, regardless of who you buy it from. Just because nobody bothers and mostly get away with it doesn't mean the liability on you doesn't exist. It's called a Use Tax, and it's on every good that sales tax isn't collected on at time of sale. That applies to purchases from the internet, such as Amazon, too.

Use Tax

If you or your business buys items that are subject to sales tax – for which the seller does not charge and collect the tax on the invoice (or receipt) – you are personally responsible for remitting the tax directly to the PA Department of Revenue. This tax is called use tax.

Purchases made over the Internet, through toll-free numbers (800, 888 and 877), from mail order catalogs and from out-of-state locations are examples of purchases that would be subject to use tax if sales tax was not paid. The tax rate is the same as the sales tax, 6 percent state, plus 1 percent local tax for residents of Allegheny County or 2 percent local tax for residents of Philadelphia.

The PA.gov website goes further into it.

[Chaptop]

Alright, I don't understand the attitude at all. It's obvious because I didn't immediately realize it in my original post.

I'm coming here because again, obviously you would understand better than myself. If I knew this, I wouldn't be asking, and I'm trying to cover all my bases before I make a purchase. I live in an area for most of my life where cars were nice to have, but not necessary to get where you're going whatsoever. Things have been different since moving up here however and it is now coming to head.

Do you pay tax on amazon or ebay, etc? If so, more power to you - I never knew it was necessary and never have.

And just because you were fortunate enough to be able to afford a vehicle (either via work or credit) at 18 and 19 does not mean I am. Frankly, I have saved up for a long time just to be able to get something decent for making my life a smidge easier.

I appreciate the help, but please don't be rude, it's unnecessary (champ-ing someone = rude, btw)

So, my final question would then be, if I buy from someone in jersey, either private or through a dealer, would I be subject to their 7% sales tax, or would I be paying my state sales tax? If I am subject to their tax, does PA rebate me my 1%?

[MeinGlanzendMotorrad]

You would be subject to your sales tax. If you're in Philadelphia, it would be 8%.






champ

[Chaptop]

I'm in East Norriton now, used to be in Roxborough. Right now my sales tax is 6% and Jersey is 7. How would that work?

[MeinGlanzendMotorrad]

You give the guy the money, he signs his title, you get insurance, you bring the car to PA, take the title to a notary, they do the paperwork, file the title to be transferred to PA, give you a plate, and then you're pretty much good to go.

Best thing to do is find a notary tomorrow and call and ask them what their procedure is.