Trading cars

[leonphelpss11]

I was thinking about trading my car privately to another person for a car worth about 2X,XXX. I'm not exactly sure how this process would go if we just traded straight up and I was wondering if anyone could enlighten me. I still owe 1X,XXX on my car. Would I have to pay any sales taxes? How much are title transfer fees? Can anyone give me pretty much a full list of what this entails.

Thanks
Tony

 

[TyraNSX]

Since you haven't bothered to fill out your city & state in your profile, no one can answer your question. Every state has different taxes, fees, & DMV policies. When you do fill these out,they appear below your screen name.

I know some states only charge sales tax on the cash part of the transaction, not the trade part. Doubt this is uniform though. Some states cap sales tax, most don't. You need to fill out your profile.

It probably matters where the other car is too. And until your bank gets their $10K +, you won't be getting the title to do anything with "your" car.

 

[drew]

Does LA = Los Angeles or Louisana?

In CA, each of you would have to pay the appropriate Use Tax and title fees.

The tax is computed at standard tax rates based on the value of the vehicle.

If the numbers don't sound correct, then DMV can come after you for perjury and grand theft. So base the values on something verifiable.

 

[EuroBoutique]

As the others have said EACH STATE is different on laws on trading cars when the two parties are NOT related.

Aside from those issues, you FIRST need to pay off your car and GET YOUR TITLE IN HAND. No one will consider trading you for a car you do not own quite frankly put.

A trade is easy if both people have their titles and agree on the trade. Just need a contract signed and then going to each respective DMV to register the car in their own name. But no title = no game.


rk

 

[drew]

Oh, I missed the loan part...I've never purchased a depreciating asset on time.

I presume you do not wish to pay off the loan prior to trade?

You can do it, but you have to trust the other party completely. You don't save any money on the DMV fees and has a lot of points for serious failure. Yeah, I've had GF's that did weird crap like this.

The bank is the Legal Owner and you are the Registered Owner. You and your friend would have to go down to the bank, you sign off your interest in the vehicle and, with the banks permission, your friend applies for and takes over the loan amount. The other party would pay all the loan-, doc- and DMV transfer fees. (OR the other party would just pay off the remainder of the vehicle.)

Then you go over to the other bank and do the same. With any luck it all works out.

If there is any problems (like not getting approved for a new loan after one person has transferred their car), then somebody is going to get screwed out of their car with no recourse.

My advice: do it only if you trust the other party completely AND you don't mind losing your interest in your vehicle if the transaction cannot be completed (for whatever reason).

 

[RON98]

he has to pay off the loan or give the other guy 8K to match the 20k even trade.

also REGARDLESS he has to pay off the loan to get the title to give to this guy OR he has to pay this other guy the fair amount to = the other guys car and transfer the loan to the other guy provided other dude is approved.

my recommendation. pay off your car, get the title, the from there the world opens up. if you wan to trade go for it, at least you will have the title in hand. also the other guy wont get screwed if you dont pay off your loan for any reason.

what he SHOULD be doing is picking up the phonecalling his loan company and get some real answers.

here in california, regardless of what you do, you pay sales tax. trade, gift, unless its a family transfer. where is southwest LA? here in los angeles we dont say.. south west LA.

anyways, laws differ in states. in california, we approve of double, tripple, quadupple taxation which i think is BS.