# When trading cars with someone, what's involved? **URL:** \ **Category:** NYSpeed Automotive\ **Created:** [November 10, 2009, 9:33am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958 "2009-11-10T09:33:34Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![myHonda1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/myhonda1/32/4960_2.png) [@myHonda1](https://forums.speedlife.net/u/myHonda1)\ **Post date:** [November 10, 2009, 9:33am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/1 "2009-11-10T09:33:34Z")
ive never done this before. so im thinking about trading my car with someone. what exactly has to be done. i know you would sign over each others titles, but as for registering purposes what has to be done? are taxes to be paid? my car is a 95 and his is a 96 if that matters. thanks ---
**Author:** ![Paulo](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/paulo/32/7328_2.png) [@Paulo](https://forums.speedlife.net/u/Paulo)\ **Post date:** [November 10, 2009, 9:34am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/2 "2009-11-10T09:34:10Z")
Hmm. I thought about this before and never bothered to look into it. Good question. ---
**Author:** ![blewbyu](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/blewbyu/32/5055_2.png) [@blewbyu](https://forums.speedlife.net/u/blewbyu)\ **Post date:** [November 10, 2009, 9:35am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/3 "2009-11-10T09:35:56Z")
I think i would just write eachother receipts for like 200$ and sign over the titles… but idk ---
**Author:** ![Minglor](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/minglor/32/7373_2.png) [@Minglor](https://forums.speedlife.net/u/Minglor)\ **Post date:** [November 10, 2009, 9:40am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/4 "2009-11-10T09:40:07Z")
> [@blewbyu](#): > > I think i would just write eachother receipts for like 200$ and sign over the titles same. I think they calculate tax based of fair market value of the vehicle otherwise ---
**Author:** ![upstateclipse](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/upstateclipse/32/7348_2.png) [@upstateclipse](https://forums.speedlife.net/u/upstateclipse)\ **Post date:** [November 10, 2009, 9:52am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/5 "2009-11-10T09:52:37Z")
Yep you have to pay taxes on the vehicle that you are registering. ---
**Author:** ![ultradriver10000](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/ultradriver10000/32/7397_2.png) [@ultradriver10000](https://forums.speedlife.net/u/ultradriver10000)\ **Post date:** [November 10, 2009, 10:09am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/6 "2009-11-10T10:09:19Z")
> [@upstateclipse](#): > > Yep you have to pay taxes on the vehicle that you are registering. You don’t pay tax when you have a trade in at a dealer, why would you private party? ---
**Author:** ![Jam](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jam/32/7235_2.png) [@Jam](https://forums.speedlife.net/u/Jam)\ **Post date:** [November 10, 2009, 10:13am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/7 "2009-11-10T10:13:10Z")
either you write bills of sale saying both cars were sold for $xxx or you say they were traded. if you say they were traded you pay the tax for “fair market value” for the car. much easier and cheaper to just say they were both sold for a couple hundred $ if its believeable nys, what a crock of shit. making you pay sales tax on a used car :bloated: ---
**Author:** ![myHonda1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/myhonda1/32/4960_2.png) [@myHonda1](https://forums.speedlife.net/u/myHonda1)\ **Post date:** [November 10, 2009, 10:15am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/8 "2009-11-10T10:15:50Z")
> [@blewbyu](#): > > I think i would just write eachother receipts for like 200$ and sign over the titles… but idk this is what i was thinking of doing. > [@ultradriver10000](#): > > You don’t pay tax when you have a trade in at a dealer, why would you private party? very true…thats why im stuck. ---
**Author:** ![FiftyCheven](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/fiftycheven/32/4950_2.png) [@FiftyCheven](https://forums.speedlife.net/u/FiftyCheven)\ **Post date:** [November 10, 2009, 10:19am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/9 "2009-11-10T10:19:15Z")
> [@myHonda1"](#): > > ive never done this before. so im thinking about trading my car with someone. what exactly has to be done. > > i know you would sign over each others titles, but as for registering purposes what has to be done? are taxes to be paid? > > my car is a 95 and his is a 96 if that matters. > > thanks ruh roh…what are you considering trading for? aren’t you ever happy? lol edit: i would just write each other a receipt for a couple hundred like everyone else suggested. Prob. the easiest/cheapest way. ---
**Author:** ![Penfold](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/penfold/32/5007_2.png) [@Penfold](https://forums.speedlife.net/u/Penfold)\ **Post date:** [November 10, 2009, 10:20am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/10 "2009-11-10T10:20:35Z")
You are definitely suppose to pay taxes on the fair value. Dealer’s are an exception because they are running a business. ---
**Author:** ![myHonda1](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/myhonda1/32/4960_2.png) [@myHonda1](https://forums.speedlife.net/u/myHonda1)\ **Post date:** [November 10, 2009, 10:22am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/11 "2009-11-10T10:22:56Z")
> [@FiftyCheven](#): > > ruh roh…what are you considering trading for? > aren’t you ever happy? lol neva! it’s a secret! ---
**Author:** ![livin4hockey](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@livin4hockey](https://forums.speedlife.net/u/livin4hockey)\ **Post date:** [November 10, 2009, 10:33am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/12 "2009-11-10T10:33:02Z")
> [@blewbyu](#): > > I think i would just write eachother receipts for like 200$ and sign over the titles… but idk Speaking from a recent experience, the DMV would not accept a bill of sale for such a low amount because it was “below fair market value for the car.” So I had to have the seller fill out SECTION 6 of this form: [http://www.nydmv.state.ny.us/forms/dtf802.pdf](http://www.nydmv.state.ny.us/forms/dtf802.pdf) The seller had to sign it stating the car was being sold at below fair market value. Otherwise they were going to make me pay taxes for what they thought was fair market value for the car. In that same section, there is a spot for sellers who agree to trade their cars. I think each party involved will have to fill one out for each other to take to the DMV for when you register your new car. You will still have to pay taxes, but it should not be as much as a regular private party sale I think. ---
**Author:** ![upstateclipse](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/upstateclipse/32/7348_2.png) [@upstateclipse](https://forums.speedlife.net/u/upstateclipse)\ **Post date:** [November 10, 2009, 10:34am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/13 "2009-11-10T10:34:17Z")
> [@ultradriver10000](#): > > You don’t pay tax when you have a trade in at a dealer, why would you private party? On the sales tax form, it asks right on it for the value of any work performed or trades received. I don’t bother to ask New York why, I just pay like everyone else. I was also under the impression that if the dealer tries to sell the trade-in, sales tax for the sales price must still be paid by the end buyer so New York ends up getting their money from someone. ---
**Author:** ![upstateclipse](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/upstateclipse/32/7348_2.png) [@upstateclipse](https://forums.speedlife.net/u/upstateclipse)\ **Post date:** [November 10, 2009, 10:44am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/14 "2009-11-10T10:44:25Z")
> [@livin4hockey](#): > > Speaking from a recent experience, the DMV would not accept a bill of sale for such a low amount because it was “below fair market value for the car.” So I had to have the seller fill out SECTION 6 of this form: > [http://www.nydmv.state.ny.us/forms/dtf802.pdf](http://www.nydmv.state.ny.us/forms/dtf802.pdf) > > The seller had to sign it stating the car was being sold at below fair market value. Otherwise they were going to make me pay taxes for what they thought was fair market value for the car. In that same section, there is a spot for sellers who agree to trade their cars. I think each party involved will have to fill one out for each other to take to the DMV for when you register your new car. You will still have to pay taxes, but it should not be as much as a regular private party sale I think. Unfortunately, you still have to pay taxes on market value unless it is marked that the car is in poor condition. Also, regardless of how much I buy or sell a car for, I always fill out or have the other person involved fill out the seller’s portion of the sales tax form. I had 2 bad experiences with the dmv when I was younger because I failed to so I will never take the chance again. ---
**Author:** ![upstateclipse](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/upstateclipse/32/7348_2.png) [@upstateclipse](https://forums.speedlife.net/u/upstateclipse)\ **Post date:** [November 10, 2009, 10:47am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/15 "2009-11-10T10:47:23Z")
Does any one know how they decide “fair market value”? ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [November 10, 2009, 10:59am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/16 "2009-11-10T10:59:58Z")
> [@upstateclipse](#): > > Does any one know how they decide “fair market value”? Pretty sure it’s just NADA data. I’m curious what someone like Pauly has to say about section 6 of the selling form. Like how much can you get away with if you have a generous seller who is willing to sign it saying they sold it well below market value? If the seller signs that they sold a 20k car for 2k will the DMV require additional paperwork or is it as simple as needing both parties (buyer and seller) willing to lie? ---
**Author:** ![Jam](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jam/32/7235_2.png) [@Jam](https://forums.speedlife.net/u/Jam)\ **Post date:** [November 10, 2009, 11:20am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/17 "2009-11-10T11:20:46Z")
a friend of mine got in a bit of trouble for reg’ing his 2002-ish car for really cheap, i think it was around $1000. he just had to pay a few hundred $ and it was all taken car of on the other hand, i reg’d my 95 acura integra with a bill of sale for $50 with no issues. i didnt pay much more than that for it, but the car booked much higher, around $2k ---
**Author:** ![livin4hockey](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@livin4hockey](https://forums.speedlife.net/u/livin4hockey)\ **Post date:** [November 10, 2009, 11:24am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/18 "2009-11-10T11:24:40Z")
> [@upstateclipse](#): > > Unfortunately, you still have to pay taxes on market value unless it is marked that the car is in poor condition. Also, regardless of how much I buy or sell a car for, I always fill out or have the other person involved fill out the seller’s portion of the sales tax form. I had 2 bad experiences with the dmv when I was younger because I failed to so I will never take the chance again. That sucks, I wasn’t sure if there were any tax breaks for trading or not. > [@JayS](#): > > Pretty sure it’s just NADA data. > > I’m curious what someone like Pauly has to say about section 6 of the selling form. Like how much can you get away with if you have a generous seller who is willing to sign it saying they sold it well below market value? If the seller signs that they sold a 20k car for 2k will the DMV require additional paperwork or is it as simple as needing both parties (buyer and seller) willing to lie? My complaint is, what if you did buy a wrecked vehicle, or a rolling chassis, ect? Let’s say it is a 20k car, and maybe you get it for under 10k to be somewhat realistic. The DMV will still want you to pay taxes on the car valued at 20k simply because that is what they determined to be the fair market value. There is no established value for cars that fall under these categories. There’s no alternative route besides having the seller say that it was sold “below fair market value.” ---
**Author:** ![livin4hockey](https://avatars.discourse-cdn.com/v4/letter/l/d2c977/32.png) [@livin4hockey](https://forums.speedlife.net/u/livin4hockey)\ **Post date:** [November 10, 2009, 11:26am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/19 "2009-11-10T11:26:03Z")
> [@Jam](#): > > a friend of mine got in a bit of trouble for reg’ing his 2002-ish car for really cheap, i think it was around $1000. he just had to pay a few hundred $ and it was all taken car of > > on the other hand, i reg’d my 95 acura integra with a bill of sale for $50 with no issues. i didnt pay much more than that for it, but the car booked much higher, around $2k Interesting, I got rejected for a $500 bill of sale on a 98 teggy.:sword: ---
**Author:** ![Pauly](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/pauly/32/7493_2.png) [@Pauly](https://forums.speedlife.net/u/Pauly)\ **Post date:** [November 10, 2009, 11:34am UTC](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958/20 "2009-11-10T11:34:26Z")
> [@JayS](#): > > Pretty sure it’s just NADA data. > > I’m curious what someone like Pauly has to say about section 6 of the selling form. Like how much can you get away with if you have a generous seller who is willing to sign it saying they sold it well below market value? If the seller signs that they sold a 20k car for 2k will the DMV require additional paperwork or is it as simple as needing both parties (buyer and seller) willing to lie? I have no idea since my job has nothing to do with registration. but next time i’m at a local office talking to someone i know i will try to find out [Next page](https://forums.speedlife.net/t/when-trading-cars-with-someone-whats-involved/75958.md?page=2)