trading title for title?
12-19-14, 12:32 PM
#1
trading title for title?
My friends grandmother just gave her a '01 Audi. She hasn't even re-titled the car in her name yet but has found someone who will trade her an RX7 for it, which is what she really wants. She is worried she is going to have to pay to have the Audi retitled in her name, pay tax on it and title, just to turn around and have to do the same thing on the RX7. Anyone have any insight as far as the best way to do this so that she isn't paying out the nose to try to swap cars? This is GA state, I know laws often differ if that helps.
12-19-14, 01:09 PM
#2
Here in michigan, as long as the title is signed off, and the "purchaser" hasn't signed it, its fine, just some people may raise an eyebrow and get scared
But, as you said, every state is different,theres a couple GA people on here so they should know
But, as you said, every state is different,theres a couple GA people on here so they should know
12-19-14, 01:18 PM
#3
MECP Certified Installer
My friends grandmother just gave her a '01 Audi. She hasn't even re-titled the car in her name yet but has found someone who will trade her an RX7 for it, which is what she really wants. She is worried she is going to have to pay to have the Audi retitled in her name, pay tax on it and title, just to turn around and have to do the same thing on the RX7. Anyone have any insight as far as the best way to do this so that she isn't paying out the nose to try to swap cars? This is GA state, I know laws often differ if that helps.
I got gifted a car (Texas) in 2008 and when I got the title registered to me at the tax office, I had to pay $450 in sales tax. They based it off the blue book price of the car.
If I where you, or her, figure out what the tax law is and lie through your teeth.
Last edited by misterstyx69; 12-19-14 at 02:26 PM.
12-19-14, 05:37 PM
#6
You can get a bill of sale notarized stating that you bought the car for some outrageous price....like $1000 or something low. That is what they base the sales tax off of. If you really want to trade the car, get your friend's grandmother to do the trade. That way you alleviate having to re title the car and avoid at least one set of state taxes.
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12-19-14, 08:41 PM
#9
+1 here!! When I got my FC back in 2007, the previous owner just put $100 on the title. If it was here in Ohio, all three of you could go to the DMV and they'll handle everything for you. And since it'd be a gift and an even trade with no cash involved, there'd be no tax paid for either car 
12-20-14, 12:44 AM
#11
The titling vehicles have changed since early 2000s. For Minnesota, as many other states, any car valued over $3000 you'll need to pay "fair market value" on for taxes.
I bought my 04 g35 for lower than that and had to sign a paper explaining why I was able to buy it for lower than FMV.
With older cars (as our rx7s tend to be "old") the people at the dmv don't really think of researching the FMV of older cars as many assume they are not worth more than $3000.
Now, what you do for pricing is all on you, but I would not personally admit or announce I provided a number not what I paid for a car as this might result in some kind of violation with tax law (if you're looking at it from a legalistic POV). However, you're basically getting one for free so yeah.
I'm thinking if you said you traded it, it might get weird with trading an rx7 an Audi...(maybe maybe not I've personally never done that)...
Nonetheless, good luck with your situation.
I bought my 04 g35 for lower than that and had to sign a paper explaining why I was able to buy it for lower than FMV.
With older cars (as our rx7s tend to be "old") the people at the dmv don't really think of researching the FMV of older cars as many assume they are not worth more than $3000.
Now, what you do for pricing is all on you, but I would not personally admit or announce I provided a number not what I paid for a car as this might result in some kind of violation with tax law (if you're looking at it from a legalistic POV). However, you're basically getting one for free so yeah.
I'm thinking if you said you traded it, it might get weird with trading an rx7 an Audi...(maybe maybe not I've personally never done that)...
Nonetheless, good luck with your situation.
12-20-14, 07:50 AM
#12
There are two issues potentially in play here and both of them affect the RX7 owner more than your girlfriend.
When Gran gave the car away, did she sign the title?
Did she date it?
Most states I've lived in don't require a notary to transfer a title (CO doesn't), so unless Granny is sitting right there- and can prove her identity- the new buyer (RX7 guy) must decide if you are trustworthy or not. You could have killed her and forged the signature for all he knows.
Assuming he buys the signature and trusts you, we come to the date thing...
Most states (and again I'll reference CO since that's where I live) allow 30 days from the date of sale to transfer the title and register the car (the DMV could care less about the title fees, it's those sweet,sweet registration fees they want).Every month beyond the initial 30 days incurs a penalty, payable by whoever next titles the car.
If Granny signed and dated the title six months ago and you've been sitting on it since, the RX7 guy is going to eat these "fines" when he goes to transfer title to his name...a fact he may or may not be aware of.
Most states could care less what you say you paid, they know you've been lying through your teeth for decades ("I know, right? Who'd believe I got a Viper for $100...guy didn't know what he had!") and now use some algorithm designed to extract the maximum fees from our pathetic used cars. Nothing you can do about that, so don't bother getting cute.
I don't believe you/girlfriend are doing anything illegal but all of the risk in this transaction is being assumed by the RX7 guy, so it's kinda up to him.
When Gran gave the car away, did she sign the title?
Did she date it?
Most states I've lived in don't require a notary to transfer a title (CO doesn't), so unless Granny is sitting right there- and can prove her identity- the new buyer (RX7 guy) must decide if you are trustworthy or not. You could have killed her and forged the signature for all he knows.
Assuming he buys the signature and trusts you, we come to the date thing...
Most states (and again I'll reference CO since that's where I live) allow 30 days from the date of sale to transfer the title and register the car (the DMV could care less about the title fees, it's those sweet,sweet registration fees they want).Every month beyond the initial 30 days incurs a penalty, payable by whoever next titles the car.
If Granny signed and dated the title six months ago and you've been sitting on it since, the RX7 guy is going to eat these "fines" when he goes to transfer title to his name...a fact he may or may not be aware of.
Most states could care less what you say you paid, they know you've been lying through your teeth for decades ("I know, right? Who'd believe I got a Viper for $100...guy didn't know what he had!") and now use some algorithm designed to extract the maximum fees from our pathetic used cars. Nothing you can do about that, so don't bother getting cute.
I don't believe you/girlfriend are doing anything illegal but all of the risk in this transaction is being assumed by the RX7 guy, so it's kinda up to him.