Hey my brother is selling his car, it's an 06 Mazda 3. His car is worth around $15,000, but he is trying to list it for 5,000 on the bill of sale. Has anyone heard of the DMV catching anyone doing this?

 

If he is doing it for a friend or family member he can write it off as a gift on the bill of sale. When my uncle gave me the Avalon, we did that to avoid paying a tax on the car. Whether this can be used in Cali though I have no idea. Honestly it's none of their business how much you sell a car for. If you want to sell it for 5k when it's market value is way above that, that is your prerogative.

 

if his selling price (the price that the buyer gives) is more than the value he put on the pink slip, that's considered fraud, i think it's felony. i have heard about dmv catching (not believing the stated price) and force the buyer to pay tax based on blue book values. this of course does not include if the buy is relatives.

 

I agree with both posts. If he is selling a 15k car for 5k thats his business. If he sold it for 15k and is trying to write 5k on the BOS, that is fraud.

 

Uh... It is absolutely their business. They need to collect tax on it.

 

the funny thing is they are collecting tax on something that's already been taxed when it was new. Double taxation ftw.

 

I understand that, but as 4tehnguyen already stated, it's been taxed once, what you sell it for, whether it be market value or less than, it's none of their business. If you sell it for less, that's your choice and the tax collectors need to deal with it.

 

Think of it in terms of taxing each transaction. They collect tax every time it changes hands.
They also have established values for vehicles. If your sales price comes in extraordinarily low, they'll simply tax you on the value of the vehicle based on their tables, not what you put down.
CA certainly could use the revenue!

 

if he really sells it for cheaper then yes, it's none of their business. but if he states a lower price but actually receiver a higher amount, that's fraud

 

It sucks, but I think of it as a crime syndicate... They charge you each time you conduct a transaction on their turf erh, I mean county/state.

 

I completely agree, that's a given, if that's what Jet meant, I'm sorry. I thought he meant that the tax collectors deserve to stick their nose in everyone's business.

 

So back to the topic at hand... has anyone been caught? Haha.

 

There was a thread created within a few months ago talking about how NY states are looking over at past registrations. Many of them were found guilty of fraud.

 

I remember that thread. Here ya go,,,,
https://www.clublexus.com/forums/car...-your-car.html

 

every car I ever bought the previous owner left it blank for me to fill out whatever price I wanted and I have always put $50 on it