bagwell

So I've heard about this before - a private individual with a car to sell and a private individual that wants to buy the car can go to a reputable car dealer to perform the transaction and handle all the paperwork.

Anyone done this?
What does the dealer charge?
Is there a specific term for doing this?

Thanks...trying to prevent hassles for both seller and buyer.

Lexusfixer

I would guess whatever the dealers processing fee is x2.

pbm317

I sold a car to a private party, and their credit union handled everything, no fees that was I was aware of. They handled everything, paying off my loan, DMV paperwork, etc.

mmarshall

Title-transfers usually require a licensed Notary Public, who, in most cases, can charge for it....they don't work free. My late mother, who is now deceased, was a Notary, and that sometimes made it easier for me if I bought or sold a car privately. Credit Unions and dealerships will usually have a Notary on duty somewhere (sometimes the dealership's Buisness Manager is also licensed for it). The cost of that service, of course, is usually included in the dealership's processing fee (which, except for that specific part of it, and of getting tags, is often a ripoff). In a credit union, someone is also probably paying for that Notary service......in this case, it was just not you.

mcomer

Most common use of this is when you want to save on taxes. When buying a car most states
reduce the tax by the amount of the trade. If you don't trade it in you pay tax on the whole
transaction value. If you trade it and bring in a buyer for the trade the dealer can handle both
transactions easily. Usually it can be done at the appraised value, trade buyer pays sales tax
so the state is happy. Dealers record show two sales so they are happy. No need to mark it
up as the car has not been inspected, inventoried, advertised, no commissions get paid, nothing.

bagwell

I forgot to mention this is an out-of-state, long distance transaction - trying to make only 1 trip to go pick up a car from an individual with no hassles.

Aron9000

Is the title in the seller's possesion? No lien/note or anything on the car?

If the seller has the title, pay the guy in $100 bills. Now carrying around that much money is dangerous and stupid of course, so you don't want to do that. Make sure there that your bank has a branch somewhat near the seller. If they don't open up an account at Bank of America, Citi, etc, someplace that has a branch in your town and the seller's town.

That way when you go inspect the car, yes it is how the seller described it, you decide to buy it, you can just go to the bank in his town. You can either withdraw $100 bills and pay him on the spot or the bank can make out a cashier's check to him. He signs the title over to you in the bank lobby, you give him a ride back to his house and go on your merry way.

As for a plate, I've just took one off of my other cars, drove the speed limit on the way home and was fine. If you want, I did do this for one seller, after he paid me and I signed the title over to him, we went to the DMV and they gave him a temporary paper plate to put on the car to drive home.

Also you might want to make sure the seller does not fill in the amount you paid on the title. Whatever you put in that amount is what you will be taxed on. I know in my state they don't give two flying f's about what that amount on the title was, either that or the people at the DMV are so dumb they think a 10+ year old car is virtually worthless.

blacksc400

iTrader: (4)

All depends on the states, such as Nevada no longer tax on private sales, also, if u put a plate from another car onto your new car, in Nevada is federal crime. So check with your state law to make sure.

bagwell

it's a $56000 deal - it will be financed - seller does have the title.

Tax has nothing at all to do with this deal....you get taxed wherever you register the car.

We've decided to just go thru a dealer for the transaction to keep things simple - I've had horrible experiences with idiot private sellers.

wasjr

Some dealers don't do this anymore as they are the technically the one selling the car, and as such, have any liability if issues arise.

My first experience with Lexus was about 15 years ago on the buy side of a used LS in one of these transactions. The Lexus dealer charged me $100 (which I had no problem with) to fully inspect the vehicle since they were technically the seller. When I went to buy the wife's 13 ES300h, I was selling her Volvo myself and wanted to process the transaction as a trade with the dealer, but was told they don't facilitate these transactions anymore due to potential liability exposure.

As mentioned, documentation varies by state. In TN there is a Bill of Sale that is printed on the back of the title that is typically used for the transaction. Although when I sell a vehicle privately, I prepare a bill of sale with language acknowledging vehicle being sold "as is, where is" with no warranties.

FrankReynoldsCPA

Actually, the notary is a state-by-state requirement. Utah does not require a notary to transfer a title, nor does Nevada. The dealerships here do seem to employ notaries for other reasons though. My friend just bought a new Corolla here, and because he is from out of state, had to get sign a notarized statement saying that he would pay the sales tax in Utah when he registered the car.

Matador

Some states have updated their policies to calculate tax based on either the sales price or the black book/estimated value to prevent this type of fraud.

chikoo

TX is one of them. They call it presumptive value.

bagwell

Well deal fell thru. Title had been "washed", originally it was a Salvage title....titled in 3 different states turned it into a clean title....but SALVAGE will always pop up in CARFAX!