Sales Tax on Used Cars

[Tactically Fat]

Yes but that Jeep will do 0 - 60 in 3.5 seconds.

Yes indeedy! And, honestly, dollars-to-HP, it's a relative bargain. Provided you don't also expect it to go around corners.

They look and sound amazing. Even the boring old SRT JGCs are beautiful machines.

And you can get up near $80k on a JGC if you pick the most expensive trim level and choose all the options.

 

[femurphy77]

Yes, 7% it is, and like a KFC buffet, there is no limit.

I just recently finished a profoundly successful pre-owned car hunt. Took me damn near two weeks to find one:

1. That I could afford
2. That didn't have a leaking <fill in blank>
3. That didn't have a rusted out frame (and I mean perforated, not surface rust)

I can tell you I literally visited 6-7 dealerships (not including the web browsing on others) -- big name ones, not a mom and pop's corner lot -- and you would not believe the absolute JUNK some of them have available. I understand "as-is" at a certain price point, but mama mia, these dealerships still need to retain some dignity!

One west side dealer, "Yes, this vehicle passed our thorough safety inspection..." -- but when I got under it in the lot (they didn't expect that...) I found a hole I could put three fingers through in the frame on a $10K vehicle. IMHO, $10K car should get someone a solid daily driver without too much screening. Another vehicle, north side dealer along 96th, nice salesman, high rated dealership, car rode like a dream -- HVAC all ****ed up and literally missing a button for fan control on the dash. How does a dealer of brand X offer a brand X used car WITHOUT A ****ING FAN CONTROL BUTTON ON THE DASH? Like they couldn't have hit the parts department up for a $10 button on one of the most important things people see on a car? I mean, OK, leave a leaky CV boot since nobody but the fanatics are going under there, but a damn dash button...same dealer also failed to clean out the 5-6 cigarette butts in the ash tray. I know margins are tight but **** man, even a basic detail job should have caught that.

Happily, and not everyone has the time and opportunity (fanaticism?) to do this, but I was able to spend 4-5 hours a day for over a week researching dealer sites and used car aggregate sites/apps, YouTube videos, CARFAX reports, etc. until I found a car better than I was actually looking for (in brand prestige and maintenance history) at a price below $10K.

I am not sure how younger people, just starting out, without a big check from mom and dad or **** tons of time on their hands, can get a reliable set of wheels these days. Sad for our young people when such a basic necessity in our society is so difficult to identify and acquire. No wonder they are voting for Bernie!

One truck I looked at, less than 5k on the odo, fully loaded Denali, reeked of cigarette smoke. I'm not talking about opening the door and wondering IF this might have been smoked in at one time, I'm talking about reaching thru the closed window and ***** slapping you multiple times then dragging you thru a horse trough sized ashtray face first after having Bertha jump on your chest to force every last ounce of air out of your lungs forcing you to inhale that dreck into your lungs bad! The salesman assured me they could have that detailed out!

 

[mmpsteve]

When I went to replace my Ford Ranger (#2 son needed a vehicle), and discovered Ford didn't offer it any more, I looked at the F150's. I didn't look past the sticker prices when I saw I was going to have to spend near 50K for what I wanted. I've had Ford trucks, several different models, since 1988, but will probably not buy another with prices the way they are. I have an F250 for my shop, but I've always enjoyed the Ranger for personal use. Ford abandoned me with the Rangers, and are pricing themselves out of my comfort zone on everything else. So I looked at all the small/midsized trucks on the market and found them all to be more than I wanted to spend. Ended up with a new 2016 Nissan Frontier 4wd for about 31K, and have been happy with it so far, except for the gas mileage. I don't understand, in this day and age, how a six cylinder small truck can only average about 17 mpg in mixed driving. Sorry for the topic drift, but had to comment when I saw people having sticker shock.

 

[printcraft]

Never heard of a maximum. 7% = 7% and they'll take sales tax on the same item again and again and again and again and again and again and again.

THIS ^^^^^

Biggest ****ing scam going right up there with property tax.

 

[jzwhts]

The whole "cash for clunkers" program destroyed the middle class of used cars. There is now really expensive or really junk. Not much in the middle that is reasonable. The effects are really long term.

 

[bacon#1]

Just paid $490.12 today.

 

[WebSnyper]

https://www.in.gov/bmv/2333.htm

Sales/Use Tax


When you purchase a vehicle in Indiana, you must pay sales tax on the purchase price of the vehicle. If a vehicle is purchased from an Indiana dealership, the dealer will collect the sales tax and provide proof of the sales tax paid on an ST108 – Certificate of Gross Retail or Use Tax Paid – State Form 48842. If a vehicle is purchased privately, the sales tax must be paid at a license branch when you apply for the Indiana certificate of title.

Indiana residents who purchased a vehicle from a state other than Indiana, including non-Indiana dealers, will receive credit for the sales tax paid in that state. If you paid less than the amount of sales tax Indiana would have assessed, you must pay the difference to Indiana at the time of the application for the Indiana certificate of title.
New Indiana residents are not charged sales tax when transferring their vehicle’s certificate of title from their prior state of residence to Indiana.
​

Denny'd...

 

[WebSnyper]

THIS ^^^^^

Biggest ****ing scam going right up there with property tax.

Yep, straight up ridiculous on a second hand,private party transaction to charge sales tax. Straight up government thievery.

 

[Expat]

Taxation is Theft

 

[9mmfan]

I haven't driven a new car in over 20 years. My current car is a 2001 Ford Taurus. When I bought it there was 77,000 miles on it. Got it for a steal.

 

[bwframe]

My extended family all lease vehicles. Drive for a couple/three years, then get a new one. Never ending payments.

I dunno how the tax works on leases? Pretty sure it doesn't matter to them, as long as the payment stays where they can tolerate?

 

[actaeon277]

My extended family all lease vehicles. Drive for a couple/three years, then get a new one. Never ending payments.

I dunno how the tax works on leases? Pretty sure it doesn't matter to them, as long as the payment stays where they can tolerate?

Yet they'll probably complain, that they don't have enough money.
Constant car payments.

 

[bwframe]

Yet they'll probably complain, that they don't have enough money.
Constant car payments.

Yeah, I can't imagine. Different lives. I haven't had a car payment for 30 years.

I prefer full payments in cash, normally for vehicles most folks would consider totally used up.

 

[actaeon277]

Yeah, I can't imagine. Different lives. I haven't had a car payment for 30 years.

I prefer full payments in cash, normally for vehicles most folks would consider totally used up.

Oh I've had car payments.
But I pay it off, then run it till it dies, with proper maintenance.
So I've had LONG periods with no payment.

A friend of mine was something like 2 payments from owning a car in the clear.
But then traded it in for a lease.
Then lost his job, which meant he couldn't pay the lease.
So instead he had NO car.

 

[churchmouse]

We leased 2 times. Traded out of the 1st one into another lease and then bought it out. Was not the best way to go.

 

[ATM]

 

[churchmouse]

Winner.

 

[wtburnette]

https://www.in.gov/bmv/2333.htm

Sales/Use Tax


When you purchase a vehicle in Indiana, you must pay sales tax on the purchase price of the vehicle. If a vehicle is purchased from an Indiana dealership, the dealer will collect the sales tax and provide proof of the sales tax paid on an ST108 – Certificate of Gross Retail or Use Tax Paid – State Form 48842. If a vehicle is purchased privately, the sales tax must be paid at a license branch when you apply for the Indiana certificate of title.

Indiana residents who purchased a vehicle from a state other than Indiana, including non-Indiana dealers, will receive credit for the sales tax paid in that state. If you paid less than the amount of sales tax Indiana would have assessed, you must pay the difference to Indiana at the time of the application for the Indiana certificate of title.
New Indiana residents are not charged sales tax when transferring their vehicle’s certificate of title from their prior state of residence to Indiana.
​

Denny'd...

I didn't see at the link, but what if you give a car away? I bought a new vehicle and gave my old one to my stepdaughter. How does the tax work for that?

 

[DoggyDaddy]

I didn't see at the link, but what if you give a car away? I bought a new vehicle and gave my old one to my stepdaughter. How does the tax work for that?

I don't know if things have changed, but you used to be able to get the seller (if they were agreeable) to put whatever price you wanted on a bill of sale. I legitimately bought a car (69 Plymouth Valiant, no reverse, wouldn't go past 2nd gear) for 30 bucks. At the time, the state sales tax was 4%, so I dutifully paid my $1.20 sales tax at the BMV, much to their disbelief.

 

[wtburnette]

I don't know if things have changed, but you used to be able to get the seller (if they were agreeable) to put whatever price you wanted on a bill of sale. I legitimately bought a car (69 Plymouth Valiant, no reverse, wouldn't go past 2nd gear) for 30 bucks. At the time, the state sales tax was 4%, so I dutifully paid my $1.20 sales tax at the BMV, much to their disbelief.

Hoping it works that way cause I'd be happy to list $25 as the sales price