Selling a Car

[Feralpeg]

Today, my sister purchased a new car. She has decided she wants to sell her old car to my daughter. She wants to sell it to her for $100.00. The car is actually worth about $6000.00 based on Kelly Blue Book.

Can she sell it to her for so much less than it is worth without having some sort of problem? Do we just make out a bill of sale and have it notarized? I know she'll need to sign over the title. Is there anything else we need to worry about? I don't want my daughter to have a problem when it comes time to license the car.

 

[Handbag Lady]

Nope. Just a written receipt with it listed "as is" would do fine.

I bought my uncle's jeep from him years ago for $1500. It was worth a whole lot more. We just needed the receipt to turn into the DMV for some paperwork.

BUT. This was over two decades ago so stayed tuned for more opinions!

 

[DVC-Don]

Often DMV will pull out the ACV and make you pay taxes based on that figure.

 

[OceanAnnie]

I don't think there will be any problems with the transaction. Your sister can sell it for whatever she wishes.

I don't think you have to make up a bill of sale and have it notarized. I bought a vehicle from an individual. I wrote out a check (put what it was for on the comment line), paid for the title to be transferred and I think that was about it. It was a long time ago, but it wasn't much to it.

 

[Feralpeg]

Thank you!

 

[OceanAnnie]

You're welcome. Your sister is super!

How is your DD doing? Has she gotten any promising assignments in the theater?
Haven't heard any updates in a while.

**I'll check back later. Going to read.

 

[The Mystery Machine]

Used car guru checking in....

Your sister can gift the car to your dd. Here is the form.
http://www.flhsmv.gov/dmv/forms/BTR/Milpak/82040.pdf

You need to call the DMV and find out the procedure. You may have to have it notorized and/or fee.

As someone else said selling for 100 might force you to pay taxes on the actual value of the car (acv) or fair market value (fmv).

If your dd wants to give sis 100 then it can be done to side she is really gifting it to her anyway.

If you don't have to pay ACV, then you could just do the 100. However, double check it so you don't go down there and then they tell you different. It happens.

 

[SCHBR'smom]

I think it varies by your location. Here you used to be able to pay taxes on what you paid for the vehicle regardless of the value. But I believe people abused that (writing down that they paid $1000 even though they actually paid $3000 to pay less taxes). We bought a used car a week or two ago from a college kid getting out of town. We're using it as a 3rd vehicle, got a great deal, only $2000. Well, when we went to register it, the tax office said it was valued at $2850, so we had to pay taxes on that amount even though we only paid $2000 for it. So, we paid taxes of value, not what we actually paid. Seems wrong to me, but that's how it is.

 

[HighClass]

We "gifted" both cars to our kids when they graduated from college.

 

[tar heel]

My in-laws gave us a car about 15 years ago, and the price line on the transfer forms said "love and affection."

 

[Feralpeg]

You're welcome. Your sister is super!

How is your DD doing? Has she gotten any promising assignments in the theater?
Haven't heard any updates in a while.

**I'll check back later. Going to read.

My sister is wonderful! My daughter has a super aunt!

DD hasn't been doing much acting lately. She's been really busy with school. She is about to start her senior year of college. Hard to believe.

 

[Feralpeg]

Used car guru checking in....

Your sister can gift the car to your dd. Here is the form.
http://www.flhsmv.gov/dmv/forms/BTR/Milpak/82040.pdf

You need to call the DMV and find out the procedure. You may have to have it notorized and/or fee.

As someone else said selling for 100 might force you to pay taxes on the actual value of the car (acv) or fair market value (fmv).

If your dd wants to give sis 100 then it can be done to side she is really gifting it to her anyway.

If you don't have to pay ACV, then you could just do the 100. However, double check it so you don't go down there and then they tell you different. It happens.

Thank you! My sister really just wants to give her the car. She didn't expect her to pay the $100. She just thought she had to put something down. Good to know that she can gift it to DD.

 

[Imzadi]

She is about to start her senior year of college. Hard to believe.

Wow, I remember pictures of her in your siggie and she was so young!

As for the car, yes, the car can gifted to her.

 

[Feralpeg]

Wow, I remember pictures of her in your siggie and she was so young!

As for the car, yes, the car can gifted to her.

Where does the time go? My baby grew up way to fast!