Re: Used car tax...anyone caught? (archive)

Recently I asked the person processing my sale at the Ca. DMV that very question. She said "we really have no way of knowing, however if it looks really off I have have known of DMV personnel who will contact the parties and inquire about the sale" She said they are just collecting tax for the State Board of Eq anyway.

My mechanics have a customer who lied about a newer car ('98 with book of 18K, he claimed something like 8-10K, he got a call from the DMV asking him a bunch of questions about the sale. He got real nervous and said it was a mistake and paid the rest of the money. I think later model cars raise more red flags.

I know of people who write two different Bills of sale on real one not. 30K purchase price=two checks: one for 20k one for 10K so there is a copy of the 20K check. Also write something like "buyer to be responsible for all repair work, including body work and engine repair" Then if you get asked you can say the engine was nearly blown, etc. and that's why it was so cheap.

Of course this works best for cash transactions.

Of course I would never do it, but has anyone ever been caught at DMV saying a used car was sold for less than it actualy was?

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