Bill of Sale - Can I avoid sales tax?

[89_3SFE]

I am contemplating buying a vehicle from a 3rd party but I want to avoid paying any sales tax, if possible. The title is with the financing company so the 3rd party has to give me a bill of sale then have the financing company send me the title. Is there anyway he could put $0 as the sales price (so consider it a gift) and then I would be able to avoid paying any sales tax?

[toyomoho]

If you put down $0 as the sales price, the licensing dept is going to ask a lot of questions. They are wise to this type of thing and the state/county wants “their” money. They might even go back and ask the seller/finance company what the car sold for or the outstanding balance. Some states have a requirement the seller file a form stating who purchased the car, mileage and price.

Paying no sales tax may be possible in some states if the car was transferred as part of an estate or from a parent to child.

If the seller does not report the price of the car sold to the state, might be able to fudge on the price a little. There is always a range of sales prices. What is the estimated sales price of the car?

[89_3SFE]

It's only about $3000 right now. How far do you think I could go before they start asking questions?

[Pineapple]

It depends how old is the car and if they still keep record of its current value. Since its still under financing, I don't think you can get away with it. I think if they don't like your number, they'll just use their and charge you tax on that.