[StreetSlayer]

Here's the situation:

My friend is #1 at a dealer for the Grom in CA. He no longer wants the grom, so I'm gonna take his spot. We drove down to dealer to see if I could take his place, the dealer said no. That he would only sell it to my friend because he got yelled at from his manager for quoting my friend such a low price. And that if I wanted to take his spot, they would increase the price by $500-700. So my friend is going to buy the grom with his name, and then just sell it to me or transfer title.

This is where I need help. What is the best way to go about this transaction?

My options as of now:

1) My friend goes through the whole process of buying, including getting a loan to pay for the grom. Then, Title transfer, write amount sold as gift/ $100-300 (reduce the amount of tax one would have to pay again) and i'm assuming I take over the payments he got?

2) I pay my friend from a pre approved loan I received from a bank, and treat it as a private sale. He writes gift/$100-300 on sale amount.

3) I co sign with him on loan, and take him off afterwards (not sure if this actually works, I'm just bouncing ideas that might work) and do title transfer.

4) I pay for his bike at the dealer, bike is under his name. We do title transfer, but I don't need to pay taxes cause I already have proof I paid.

What I'm tying to accomplish:

1) Reduce the amount of double tax I will have to pay when we do title transfer or if we deal like a private sale.
2) not get in trouble with DMV for putting super low amount of sale on pink slip. are there parameters for a red flag on these types of things? ( I find it hard to believe the DMV even has time to track these things)

Anyone with actual experience with something like, please let me know what you did and how it worked out. Or what you think is the best route to take.

Thanks in advance.

 

[swartzie]

Not sure about CA but with all the bikes I've sold I just write $500 down on the title when we transfer and that usually saves fees. I found out in WA that it doesn't matter that I paid cash up front for my Aprilia including the initial tax. When I transferred the title to another state they taxed the value of the bike as it sat in the parking lot. (wish I would've known because when I said 1800 miles on an '07 I owed $3xx dollars in taxes for the value, if I would've said 47,000 miles the value of the bike might've been lower, thus lowering the tax WA wanted)

Not so sure about that dealer either ... they're getting paid whether or not it was a terribly low quote shouldn't matter who's giving them the moolah. I'd ask to talk straight to the manager on that one. AND increasing the price after a quote because it's a different person sounds illegal to me but I don't know. My quote didn't have my name, address, etc on it so if I dropped it in the parking lot of IKEA any Joe Schmo should get that price (if there was a grom available). :2cents: from an idiot

 

[Highsider989]

Not sure about CA but with all the bikes I've sold I just write $500 down on the title when we transfer and that usually saves fees. I found out in WA that it doesn't matter that I paid cash up front for my Aprilia including the initial tax. When I transferred the title to another state they taxed the value of the bike as it sat in the parking lot. (wish I would've known because when I said 1800 miles on an '07 I owed $3xx dollars in taxes for the value, if I would've said 47,000 miles the value of the bike might've been lower, thus lowering the tax WA wanted)

Not so sure about that dealer either ... they're getting paid whether or not it was a terribly low quote shouldn't matter who's giving them the moolah. I'd ask to talk straight to the manager on that one. AND increasing the price after a quote because it's a different person sounds illegal to me but I don't know. My quote didn't have my name, address, etc on it so if I dropped it in the parking lot of IKEA any Joe Schmo should get that price (if there was a grom available). :2cents: from an idiot

Pay cash however you can and just get the bill of sale and certificate of origin, then you have another bill of sale between you and pally, you take care of titling and taxes at the DMV. Do not have the dealer title it.

 

[Shoebacca78]

dang bro... that is a ton of hassle. i'd say go talk with the manager. What business to them if you swap spots!

 

[Dj Hunny]

If he's a good friend of yours just use his name and pay him for everything. And then transfer the title over and just $500. DMV doesn't get suspicious unless you're doing it to too many vehicles.

 

[StreetSlayer]

Ya he's a good friend of mine. just gathering feedback from other members to see if there's a better solution. Thanks everyone for the advice so far.

 

[Dirvo85]

In the state of Washington if you buy something private party (AKA your friend transferring the bike to you for $500) when you go to update the title and registration the DMV charges you tax on the amount the vehicle is worth. If they look at the value being $4,000 tax would be $400 based off of 10% (sales tax in WA is between 8%-9.8%).

I would recommend just talking to the manager. Forget the sales person.

 

[ClutchAutomatic]

If not, if not at least negotiate half the price increase then you will still win via registration tax. What price did he quote your friend? I am kind of curious about that.

 

[echo]

In NJ any time you buy a vehicle you better pay the tx. You have ten days to do that after buying it. Any attempt to cheat NJ out of its money by selling without paying the tx they have it all set up to REALLY f you over!