Buy Car Private Party In Michigan, Will BMV Care What Sale Price I Put Down?

[Wease]

Might be buying a car in Michigan, private party.  The seller doesn't care what price I put down, but we're talking about a 4 year old car that will probably be in the $40K range.  I wasn't thinking of being stupid and putting down $1K, but will any flags get raised if I save some money on the taxes by putting down a cheaper price?  What limit should I go with?

[Tonik]

At a certain point they will see it and flag it for an investigation, have seen it happen. I don't know how much you can get away with but I think you will get investigated with those numbers.

[Bad324]

If it's greater than ~20% difference in what blue book is on it, they'll send a letter to both the buyer and seller. Both parties have to fill it out and the reasons have to match or you'll pay the tax plus a fine at minimum.

 

Found this out when I bought a car with a rebuilt title and paid a quarter of what a similar year and mileage non-branded title model.

[Wease]

15 hours ago, Bad324 said:

If it's greater than ~20% difference in what blue book is on it, they'll send a letter to both the buyer and seller. Both parties have to fill it out and the reasons have to match or you'll pay the tax plus a fine at minimum.

 

Found this out when I bought a car with a rebuilt title and paid a quarter of what a similar year and mileage non-branded title model.

Thanks!  This is exactly what I was trying to find out!

[Ron505]

Just make sure that you and the seller are on the same page and all should be good. 

Lucky for us, the seller, in WV, of my recently purchased side by side got in touch with us to see what we put on the Title because the State of Ohio Taxation or whatever the funk it is contacted them asking about the price.