I feel like I'm starting a new thread every day now!! Trying to keep them separated as they're different subjects/cars/etc, and that would make it easier for anyone searching in the future.

Anyway, here's where I need your advise. I found a vehicle private purchase that I think we're going to buy. However, I've never bought from a private party, so I had some questions.

How do the taxes work? When I go to the DMV and register the car/plates, don't I have to pay the taxes on the amount I state I bought the car for? Are these taxes the same as the dealer (6.75% where I'm at). Don't people usually put that they bought the car for less, so that they pay less taxes? How does that all work?

While we're on the topic of private purchases...if anyone can throw out and buyer beware items to look for, that would be great.

(The car btw, is a 2005 Jeep Cherokee Limited 4X4 Hemi. Navi, bluetooth, leather, extended warranty, sunroof, tints, etc. 34K miles. He's asking $21,900. Says the car is MINT. Explained how he's a car freak and all. Seemed like a very nice guy. Going to see it tomorrow. He bought a new car, and instead of putting this one in the driveway while selling, he put it in a storage unit so its not outside, so his new G could be in the garage.)

Any help is much appreciated.

 

No tax on a private purchase.....

 

^

You will pay taxes on the car when you register it, but since it is not a dealer then you can try to arrange with the seller to give you a bill of sale for less money since it doesnt affect him and therefore pay less taxes on the car.

 

In California, the DMV collects a sales tax based on the purchase price (on a bill of sale or receipt from the seller) from the buyer when the buyer registers the car.

Taxes are collected in California whether the car is new or used.

 

Like stated above, you will pay taxes at the DMV when you register the car.

You can get the seller to fill out the DMV forms and state that the actual selling price was lesser than actually paid, but be sure not to state the selling price at TOO LOW a value.

Example: The car is worth $21,000
Don't tell DMV that you only paid $500.

The DMV usually runs audits on the paperwork and while you might get away with it at first and be able to register the car, the DMV can still audit you months later and send you a bill in the mail for what THEY THINK you owe them.

I think you would be safe by telling them you paid 13-15k for the car and pay taxes on that. Don;t think you'd raise many flags on that price but you never know.

 

Gotta love the AZ forums. Always quick and knowledgeable responses.

Thanks guys/gals.

 

I just sold my Explorer PP.

You pay tax when you reg the car based on the sale price.
You will need insurance on the car before you drive it
You could go to dmv & get a temp tag
You likely will have to have the cars OD read to verify mileage. Can be done by a cop or DMV.
Just make sure the car is in the shape you expect it to be in. No warranties.

 

Yes, as mentioned, you will be paying tax on the purchase price of the Jeep. It's not really "kosher" to tell the DMV that you paid less for it than you really did, but most people do that, and as long as you don't put a completely unrealistic purchase price on the paperwork, you should be ok.

But on a side note, the price he's offering, IMO, it's merely "OK". Try to get him down a little. The wholesale value is a few grand less than his offered price ($18k), I think an offer between $20k-$21k, you can tell everyone you got a "great deal". $21,900 is a bit high. Then again, you're dealing with a car freak, he thinks he's sitting on gold, so he may not be as eager to lower his price. Good Luck!

 

I recommend 15% under trade in value...Max

 

In Georgia, perhaps, but they are the rare exception.

 

In many states it's blue book and not what you tell them you bought the car for ... States are finally getting wise to the "I bought this NSX for a nickel" stuff that's been going on for years.

Since I have no idea where you live, I would say www.google.com is your friend

 

This shit varies from state to state...no sales tax at all in Oregon where I live.

Check the DMV in your state, but yeah, usually you pay sales tax on a car purchased private party when you register it. I wouldn't recommend trying to cheat and put both you and the seller at risk for headaches later.

 

Thanks guys.

 

What happened?

 

Nothing yet. I'd like to get the car, but the wood trim inside and silver color is putting off my girlfriend. I don't get women. She'd rather have a white base model with a hanging headliner than a loaded one that's silver and in great condition, just because of the color. I'm trying to show her my opinion that the features are more important than color (and I'm VERY picky when buying things). A silver Laredo isn't that bad? What do you guys think.

 

Tell the girlfriend that getting out of a white colored car makes her look fat, then she'll reconsider.

Really, you can use some common sense, and say a white car will always look dirty, except when it just got washed, and white is not a good looking color (apologies to all that like white, but where I live, old people drive white cars, or "metallic pearl coat").

 

Who is paying for the car?

Unless you're married or she has a financial interest, get what you want.

 

OP:

Is your girlfriend looking to buy and drive the car, or is this a car for you and she's coming along to check them out for fun? I'm pretty sure you said your gf is looking for a car though.... (too lazy to go back to Post #1)

If it's going to be her car and she's paying for it...Offer your opinion, but in the end, let her make her own decision (as much as it might hurt you).

 

It's kind of a complicated story. I sold my TL to my mother and bought a Colorado because I need something that can tow my trackbikes to and from the track. My gf is graduating her Xray program in 5 months and wants to buy an SUV her parents give her $10K cash when she does). Since I'm not a truck kind of guy, we figured I would trade my truck in for an SUV (that she wanted). She would then take it in 5 months, and I would get a G35/Mustang/S60r (or at least those are the options I'm liking now). We started looking for cars now because I was going to downgrade to a older/more used truck that was much cheaper so that I could keep a truck but have a car on the side. When she said she wanted an SUV....problem was solved. I didn't have to have 2 cars (truck + car) because she could tow with the SUV.

We figure best to trade/sell the truck now because we know we are going to be getting rid of it within 6 months, so why add 7,500 miles and 6 months on it making it worth even less.

So that's where we sit now. I'm buying an SUV that she wants, but I don't want her to make the wrong decision.

Now she's wanting an 08 Liberty, which have cool features, but I'm trying to show her that it's better to buy a used Cherokee Limited that the 08 Liberty. For one, the limited has a sticker of $40K, 2 years ago, and is fully loaded. It has depreciated already, and if she wants lower payments she can put $5K into it and save $5K. Shes thinking buy new which means shes going to put all $10K of hers into an almost base car... so loose $ on $ that she could be investing, plus lose because it'll depreciated immediately.

 

You might want to simplify a little. I think you guys are overcomplicating the entire deal. You may need to read between the lines on the fact she doesn't like this perfectly fine vehicle because of plastic wood and silver paint. It may be that she doesn't like the overall scheme, er, plan, you have in mind. Seems you're trying to spend HER money for her.

 

She likes the scheme/idea of it...it was actually her idea because all along she planned on getting a Mazda 3 when she graduated. Then when I was looking for the cheaper truck, she said shes going buy an SUV becuase she likes being higher and seeing over cars, and that I shouldn't buy the truck because she can tow...and we came to this conclusion/scheme.

She really wanted to buy this used Laredo that was incredibly dirty inside and had hanging headliner (she said she could fix both). The dealer said they wouldn't fix the headliner, and I asked if they would detail the car and he said it was already detailed. I'm a clean freak so I wasn't having it, and she wanted to do the deal. They didn't meet our price so we walked out (thank God) becuase I didn't tell her how unhappy I was with that car for her until after we left becuase I wanted her to chose her own car. But after that experience...I thought I should give her my input.

Although I'm relatively young (23 soon) I've had many cars and have experience with this. I'm the type of person that gets bored quick and buys/sells. My cousin is also a used car manager at a dealer, and a friend works with him. So I've spent years hearing stories/examples of how their business works. Most importantly, I feel that if someone didn't take care of the inside of their car, they surely didn't take care of the engine and wear parts...so that mostly turned me off of the Laredo.

 

So you want a vehicle that can tow some bikes to the track, but yet be a bit on the sporty/SUV side and not a truck? Hmmm... A Grand Cherokee SRT would work, and 425 ponies makes for a good ride.....

You were smart to walk away from a vehicle that had the sagging headliner. I mean, unless it was free I would never take it (just like you said about caring for a vehicle). I would take a look at a used Honda Pilot. They are big, should be able to tow a fair amount, and you keep the Honda reliability. I haven't done any research on this, but I would at least take a look.

Any one else with a thought?

 

Thanks for the input. People have said to look at the Honda Pilots in other threads I started, but the gf doesn't like them too much. I originally liked the Jeeps and she learned to like them a lot too...so much so that that is really the only vehicle she is looking at. A nice HEMI 05', with 30K miles and navi in any color but green or silver is what she would like. Actually she doesn't care for navi, but after having it in my TL, I recommend to her that it's a must.

I LOVE the SRT8, and if I can find one in black with navi for around $33K in my area, I think I would buy it for myself. Between the 2 of us our needs/wants are:

Her: Jeep Cherokee Laredo/Limited
Me: Vehicle that can tow, is sport, luxurious, quick, fun to drive.

Since she'll solve the tow problem, that lets me buy whatever car. But if I bought an SRT8 that solves all my problems. I don't know. So many decisions.

Since it's the end of the month/year...we're going to give it another try at some dealers this weekend. If it's a no go...I think she'll be satisfied with the Limited from the private party. We've shopped for about a month now, been to so many dealers, delt with so many crappy sales people, and driven so many cars, I'm just ready to buy and enjoy a ride instead of listening to more sales pitches, lies, etc. I've gotten to the point where I call the sales people out on all their crap. If I hear from a Jeep dealer that Jeeps hold their value VERY well one more time, I might go crazy. I just laugh and ask them to explain how. They can't.

 

^ In regards to buying a vehicle for yourself, I wouldn't even worry about what she wants/needs, just get what YOU want for YOURSELF. If she ends up getting something with the same capabilities (eg: towing), big deal - you'll have the choice between two vehicles. Just be happy with what you get for youself, and let her be happy with what she gets.

My thoughts are, if you're not married or living together (with permanent intentions or planning a family), you should get what you need and want, not what the two of you need or want as a couple --- you probably won't be together all the time anyway and things might change down the road.

 

EDIT: If you're sharing finances or living together, then yes, having two SUVs is redundant, IMO.

 

Mods: Could you please edit the original title to add....Update: Vehicle Purchased.

Finally done car shopping!! My girlfriend found a 2005 Cherokee Limited in white with the tan interior that she wanted yesterday morning. It has 27K miles and is MINT. Whoever owned it previously (1 owner) took great care of it. She decided I was right about the Limited being our only choice over the Laredo because of the extra features...and after seeing this one, she agreed. Limited it had to be. She went to see with her dad while I was at work. She called and said she loved it, so I told her I'd try to see it after work, but maybe Saturday because I work until 5, and the Audi dealer closed at 6.

Anyway, I got there at 5:30 and it really was a great car. I really didn't think an Audi dealer would give me $17,500 for my car when Jeep and Chevrolet dealers acted like such a big deal to get there, but we talked #'s. Normally (since I know the business very well), I let the dealers play their tricks, and I play my cards to one up them, but I've been through it so much lately, that I just gave it to them straight out. I know they want Mannheim auction price, and I want retail price, so I gave them the auction numbers, explained EVERYTHING out front, told them they're gonna offer $16K for trade which I would not take (which they tried anyway), and I said if you want a deal tonight, drop the Jeep from $20,600 to $20K and give me $17,500. Then show me where to sign. They agreed. So we did. (the g/f was really happy because I didn't tell her I bought it, she found out when she came home).

They did try to play one more game with financing, telling me my score was low and rate was gonna be high (but I had already told him I could finance myself at 8.5% on an 05' model car (I work for State Farm, we're a full bank), he immediately remembered that and said hold on...oops my mistake, you didn't have a low credit score, we'll finance it for you here at 8.5%. Not the best rate, but I do have a TL and my friends motorcycle and all his gear on a line of credit, so my debt to income is affected because of that.

The Audi dealer was really straight up about most things. End of the year/month and at close time, so they didn't really play games. Overall it was a good buying experience. I got regular + winter floor mats, full tank of gas and detailing (which the crappy Jeep dealer wouldn't even do on a used vehicle), trunk guard (winter type plastic cover for the trunk area), and the country CD's that were left in the CD changer (don't listen to country, but the g/f could make use of those)!!

Thanks for all your help guys. We're both really happy with the purchase. Now one last question, should I get the extended warranty. Apparently it's some great company they use that is basically the exact same warranty as stock (covers all non-wear items) for $100 deductible. 3 years from today up to 75K miles for $1,600. I'm sure I can get them down some on that too though. At least $200 or $300. What do you guys think. It's got 6 months/9K miles left on the factory warranty.

Sorry for the long post!!

 

I would personally get the 3 years guarantee to make sure. As mentionned by some members, some Jeeps had their fair share of troubles, it would be safe imo to shell out the extra dollars for the peace of mind.Congrats.Post pics if you can

 

I'll get some pics up as soon as I can. I agree about the warranty, I've had an extended one on my TL and my truck, and although I never actually had to use it (still have the TL, traded-in the truck), it gives piece of mind. The girlfriend decided she wanted to do it, so I called the finance guy, and he dropped it $200, so we're buying it.

On a side note, when I went into the Chevy dealer to cancel the extended warranty on the Colorado, the finance guy saw the paperwork and said, "oh, they sold you the Easy Care plan? That's a great plan". So we talked about it a little, and it's good to hear a second opinion from someone who has no interest in it say that it is a good plan. Anyone have any experience with this?