Re: [MV] Purchase problem

Dave Cole (davidacole@juno.com)
Fri, 19 Mar 1999 12:19:19 -0500

Good point. One way around this dilemma is this. In many states it is
not necessary to the seller to fill out the amount sold on the title, it
is only necessary for the seller to sign the title over. Hence only one
party is taking any risk. Also, sales taxes on vehicles transfered
between states are not paid by the seller anyway. It is paid when a new
title is applied for in the state where a new title is being obtained.
If you don't apply for a title, this situation never occurs. Also, in
some states it is not necessary to have a signed off title to get a new
title, you just need a bill of sale.

If you look closely, you can see a whole bunch of loopholes in the
situation. Do everything in cash and there is no paper trail at all. No
one can prove anything.

That's why the government doesn't like cash transactions.

FWIW

Dave Cole

On Fri, 19 Mar 1999 08:08:53 -0800 Jerry Jewell <jj@tgd.com> writes:
>Not that I like taxes but what is suggested below is known as felony
>tax fraud. My
>suggestion is that if you want to commit a crime go right ahead but
>don't ask a
>vendor or customer to participate with you.
>
>Here's another thing you should know about the DMV (happened to me). I
>sold a car
>for $6,000. The buyer turned around and told the DMV they bought it
>for 3,000. The
>DMV called me to verify the sale amount. I wisely said $6,000 and the
>buyer got
>prosecuted. If I had lied for the buyer I'm sure we would have both
>been
>prosecuted.
>
>Jerry
>43 GPW
>
>JRONEY@elotouch.com wrote:
>
>>
>> Am I the only one here who doesn't like to pay "use" tax on
>vehicles
>> that are already "used?"
>>
>> Call me crazy, but in California, cash is king. Not that
>everybody
>> wants to walk around with a big wad of cash, but a few thousand
>takes
>> up less room (and is genrally lighter) than the .45 pistol
>necessary
>> to ensure its safety.
>>
>> Why cash? 8.25%, that's why. Our State Board of Equalization
>> requires vendors (and individuals) to collect sales tax on
>almost
>> everything, including used stuff. The fact that they can't
>enforce it
>> on individuals means you can generally save some $$$ when
>paying cash,
>> but the statutes require that someone pay the state.
>>
>> That cashiers check provides a wonderful paper trail for future
>> audits, etc. (anybody been watching Matlock?)
>>
>> Furthermore, if I'm selling, the first one with cash wins. The
>> deposit is a great idea, but I wouldn't leave more than I could
>afford
>> to lose, since when you come back the vendor might be gone. I
>have
>> also drafted a Bill of Sale, with deposit amounts, and blanks
>for
>> signatures and VIN's. This won't keep you from being ripped
>off, but
>> if you go to court, it's easier to prove your deposit wasn't
>for
>> something else. I've also taken keys and registration, as well
>as
>> unsigned titles for security against my deposit. Swapping
>drivers
>> licenses is good, but then it's hard to get a cashiers check!
>>
>> It's not because I'm paranoid (I am!) but I do drive a Jeep,
>and I've
>> left to get money, and I've broken down, been delayed, got
>lost, etc.
>> and when I returned, the guy/booth/show has been over and gone.
> It's
>> a wierd feeling, when you know it's your own fault, but can you
>really
>> expect someone to stay at a swap booth when you are 12 hours
>late?
>>
>> Your bill of sale should include the date, location, ID of both
>> parties, local address, permanent address, and phone numbers.
>It
>> should state the amount of DOWN PAYMENT, amount of sale, and ID
>of the
>> thing you intend to buy. It should also give a reasonable time
>to pay
>> the balance, and indicate the disposition of the DOWN PAYMENT
>in case
>> of a failure to show up. Doesn't need a lot of legal jargon,
>just a
>> sheet of paper to "remind" everybody of the deal.
>>
>> After you return with money/check/whatever, that bill of sale
>> disappears, and a new one is created with only the minimum of
>> information to satisfy the DMV. Sometimes the "sales price" is
>> modified to reflect "market value."
>>
>> I once bought a jeep and used the fact that it had aftermarket
>wheels
>> as a means to negotiate the price DOWN (no combat wheels). I
>paid the
>> deposit, and when I returned, the wheels were gone! The guy
>said he
>> thought I didn't want them, so he sold them separately. What a
>mess.
>>
>> I'm looking foward to seeing you at the convention. You'll
>know me by
>> the bulge in my wallet.
>>
>> james
>> Fremont, CA
>>
>> ______________________________ Reply Separator
>_________________________________
>> Subject: Re: [MV] Purchase problem
>> Author: Dave Cole <davidacole@juno.com> at internet
>> Date: 03/18/1999 4:09 PM
>>
>> I wouldn't deal cash or travelers checks unless you think it would
>be a
>> great negotiating advantage. If your Credit Union is 8 miles from
>the
>> center, there is no reason why you couldn't give the dealer a couple
>> hundred in cash, ( that way he knows you are dead serious, get a
>> receipt,), then you go visit your friendly credit unit and get a
>> cashier's check made out to the dealer for the full amount and he
>signs
>> over the title. Another way to do it is via electronic funds
>transfer
>> but then you both really need to go to a bank together to make the
>> transaction (not necessary from a technical standpoint, but from a
>trust
>> standpoint)
>>
>> Dave Cole
>>
>> On Thu, 18 Mar 1999 11:02:00 -0800 "Denall, Mike"
><mike.denall@lmco.com>
>> writes:
>> >Hey 1999 San Jose Convention organizers, or anyone else who can
>advise
>> >me...
>> >I have a serious question here...
>> >If I wanted to purchase a vehicle (M37 I hope), at the convention,
>and
>> >didn't want to carry a lot of cash with me, will you organizers
>have
>> >an area
>> >set aside for potential buyers to "pre-qualify" prior to the
>> >convention, say
>> >for some dollar amount so I don't have to deal with the money stuff
>> >directly
>> >with the buyers? Would you allow me to use either, a credit card,
>or
>> >a
>> >personal check from my bank with a credit card for security to
>cover
>> >the
>> >total amount of the check [kind of like insurance]. I don't want
>to
>> >stand
>> >there with hundred dollar bills falling out of my pocket while
>> >negotiating a
>> >price.
>> >How is this problem usually handled?
>> >My Credit Union is only about 8 miles from the convention center.
>> >
>> >Mike Denall
>> >19626
>> >
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