Make two separate Bills of Sale. Don’t try to go too low, or they will adjust it to market value.
find a dealer and have them broker the deal for $500 or something like that. they only real liability is if the cars die and you guys decide to be a dick to the dealer and make them fix it (since they technically sold you the car)
You’re still going to have to collect tax. A dealer can’t just trade vehicles for two people. Also, in NYS you are required to provide a NYS Limited Use Passenger Vehicle Warranty… Regardless of whether or not someone “agrees” to not hold the dealer liable…they are.
Vehicles should be taxed once, when the’re sold new. This us just another form a re-taxing something as many times as possible.
the dealer is not “trading” they are buying two cars and selling two cars. both people trading in cars and buying cars of the same value. Obviously the dealer is liable as per a normal transaction (which is what this really is).
I had a friend do this with a small dealer who was happy to make some quick cash.
That small dealer is probably run by a chode.
When the dealer buys a car, they have to then collect sales tax on it when they sell it… Sales tax has to be collected.
Forget the dealer route, unless you find a dealership that is willing to accept the possibility of being fined if/when they get audited.
lets take a more simple scenario. If a dealer sells a car on their lot for $10k and the buyer trades in a car worth $5k, the only tax collected is on the $5k not covered by the trade in, right?
im thinking of just going with the
“i sold my XXXXX to XXXXXX in as is non running/non driving condition for 5k with no implied warranty”
just pull your fuel pump fuse before the sale and the above statement is correct.
Probably your best bet, and just have the seller fill out Section 6 on that form for the “below fair market value” part.
I’ve always wondered what happens when they decide to investigate that “non running condition” thing, or if they ever do. I’ve done it on snowmobiles and boats and figured if they ever wanted proof of my repairs I would just say the previous owner was an idiot and it turned out all it needed was some wiring repaired that I did myself.
You don’t even have to write “as is, non-running.” It is used, “as is” is always implied. They don’t care if you write “non-running” on the receipt. Writing it on a receipt in no way proves anything. Just swear under oath if they question you and see if they can prove it wasn’t. Your car is 8 years old now right? Write whatever the hell you want for price. I know someone who put $50 on a receipt for a 4x4 1500 truck that was like 4 years old once and was fine. It was a salvage but I think he sold it for $10k.
Filling out the form for below market value would be a good idea but I have never done it and never had a problem. I don’t see them looking into 8 year old cars, maybe they do.
when i have bought my 2 sti’s and my corvette in the past 2 years i just get that form filled out that i bought the car for like 2-3k. I never had a problem and only pay like $200 in taxes
Well just another reason Syracuse sucks, the one DMV here made me fill out that section because $500 for a 1998 Acura Integra was well below fair market value. This was two years ago mind you, so the car was already 11 years old.
I think a lot of it depends on the mood of the person handling your paperwork. If you ever worked sales and got good at reading people you can usually strike up a conversation before the teller gets to the details of your paperwork and if you build a little bit a good rapport with them it goes a long way. When I registered my sled my paperwork was a little questionable because the guy I bought it from had basically flipped it without ever registering it in his name. The guy before me was kinda being a dick to the dmv teller so when I walked up I could see she was already in pissed off mode so I broke the ice by smiling and saying, “some days you wonder if it would have been better to just call in sick huh?”. Immediate attitude change and my questionable paperwork sailed right through. Just a warning though, some of you are probably incapable of sounding sincere and if you try this play and they don’t buy it you’re going to have your forms put under a microscope. Use at your own risk. I worked retail sales for a year and iomega tech support for 2 years. I’m really good at sounding like I legitimately care about your issues when I really don’t give a fuck.
^^I usually have a good read on situations like this too. My problem was the fact that I assumed they wouldn’t even bat an eye at an 11 year old Integra being sold for under $1000. But, lesson learned, and that’s the only time I’ve had a problem.
Correct. But when that $5,000 trade is sold (for $5,000 or $7,500 or $8,000)…OMG get this, ready? Tax is collected!
So how is a dealer going to buy a vehicle from an individual (the car walker wants to buy) then have Walker trade his car is (Walker pays the difference in tax…if any) and then sell the car Walker just traded in tax free to the guy who just sold his car to the dealer? You’re playing with your pud. It’s possibly going to throw up a huge red flag with the NYS Tax Dept and isn’t worth the hassle for a measly $500. Not to mention, you are now on the hook for any warrantied repairs on both vehicles.
If you wanted to get technical you could go:
Person A trades in Car A for random car on lot for same price.
Person B trades in Car B on Car A, also for same price.
Person A trades in random car for Car B.
Is it feasible? Probably not. But it can be done 
fyi, everyone saying they dont investigate, a friend of mine did get audited a few years back. the car was 6 or so years old. i think he wrote he bouhght it for a few hundred $ though
So what came of the audit?