Sales tax on private party sale?

[Nedar]

What is the pros and cons between buying a car from a private party vs. Dealer when it comes to taxes?

I know that even with private party sale one would pay sales taxes but how much? I know people have paid less on tax when bought privately compared to a dealer. how?

So If i bought a car for $10,000 from a private party and when i try to go register it in my name at the tag office, would i have to pay cobb county's sales tax(5%??)$500 tax and title, fees etc at that time??

I am just trying to understand how taxes work on private party sale.

Thanks for the info.

[Georgiacbr]

I didn't pay any taxes when I purchased my bike used from My best friend.I payed for
that bike out of state with a check and came back went to the Dmv with Title and it was taged in my name that easy. I would say if that was new it would be a different outcome. I moved here from California to Georgia and brought my truck here and only payed the normal Tax rate mill rate per year,I didn't pay the sell taxes there since that was included when I purchased that New in California.Hope that helps.Also take in mind the Mill rate on taxing a product varies from area and location.

[Mongo]

That was out of state and even then you usually get a bill down the line for taxes.

There is no real difference between at a dealer or private party. There is a point at something like 30 days before your birthday where they won't make you pay sales tax because the ad valorem will show up soon. One thing about dealers is a trade will offset the tax bill on the new ride.

[robb86]

^^^ Yup, as far as I know... no sales tax on private party sales.
I paid no tax on the 600RR that I bought from czechalien in '08.
That was a local - within the state sale. Just paid the for the reg/title transfer/tag

[Georgiacbr]

That was out of state and even then you usually get a bill down the line for taxes.

There is no real difference between at a dealer or private party. There is a point at something like 30 days before your birthday where they won't make you pay sales tax because the ad valorem will show up soon. One thing about dealers is a trade will offset the tax bill on the new ride.

Your wrong there is a different between New and used for Sales Taxes. I asked this question a wile back. Say for example you purchased a brand New bike out in Tenn they would have to add the sells taxe for the area you reside in Georgia and add that to the total purchase price or you pay upfront here. Used from a private party sell is not on the same area as New and taxe accordly

[impalanar]

That was out of state and even then you usually get a bill down the line for taxes.

There is no real difference between at a dealer or private party. There is a point at something like 30 days before your birthday where they won't make you pay sales tax because the ad valorem will show up soon. One thing about dealers is a trade will offset the tax bill on the new ride.

Re-read, it is still Ad Valorem if it is a ways away from your birthday.

[Nedar]

could someone put this down in layman's terms for me...

So if I buy a $10,000 car from a private party and when I go to the tag office to register and get a tag, will have to pay cobb county's sales tax on it?(which is 5% i think, $500) ??

I know people get around this by claiming the sale price was lower than what they actually paid.. etc??

[jkhonea]

could someone put this down in layman's terms for me...

So if I buy a $10,000 car from a private party and when I go to the tag office to register and get a tag, will have to pay cobb county's sales tax on it?(which is 5% i think, $500) ??

I know people get around this by claiming the sale price was lower than what they actually paid.. etc??
If you're buying a used car, to my knowledge, the only thing you'll pay is ad valorem, not sales tax, when you get the tag. No sales tax involved.

[MrBlah]

For IN state sales

new or used from dealer, you pay your county sales tax. trade in value decreases the sales taxable amount.
used private party, no county sales tax

[Tommy]

When I paid cash for my truck, and I went and got my tag I just had to pay tag fee and title transfer fee. no sales tax....

[Gmoney]

most states get you on private sales - be lucky ur in GA...

[Duck]

If it's used from a private party OR a legitimate liquidation of business assets (bankruptcy or corporate dissolution, IIRC sale must be within 30 days) then sales tax is considered to have been paid on the original purchase. In state, from out of state, it doesn't matter. If it's used from a dealer, the dealer only charges sales tax on the difference between the trade in and the new vehicle. The balance of the sales tax is applied to the used vehicle when it is sold. So, if you buy a used vehicle at a DEALER auction, you'll be paying the sales tax. You might buy a vehicle being sold with a limited power of attorney (LPA) from the owner. If you buy one like this, be sure to get a copy of the LPA because it's your proof that you are buying the car from an individual, dealers screw up their paperwork all the time and it's hell to straighten out if you don't have your own copies. Be especially careful to review paperwork on "consignment" sales.

[Nedar]

Thanks all for your answers!

[061k]

That was out of state and even then you usually get a bill down the line for taxes.

There is no real difference between at a dealer or private party. There is a point at something like 30 days before your birthday where they won't make you pay sales tax because the ad valorem will show up soon. One thing about dealers is a trade will offset the tax bill on the new ride.
lol

[wallypiper]

Here's a link (http://rules.sos.state.ga.us/docs/560/12/1/07.pdf) to the relevant Department of Revenue regulation. If the sale meets the definition of "Casual Sale" described in that regulation, no sales tax should be paid.