Insane Appraisaed value on car at dmv

Noticed on my receipt I was charges $187.80 on the sales tax for my 2008 130k mile Prius, they have the appraisal a t $8,130. Vehicle is worth that much? I value it at like $5k..

Delaware DMV goes by "sales price or NADA book value, whichever is greater." Usually, in my experience, they tend to use the average condition value. A couple of times when we have been transferring titles between family members they have used the "light it on fire and tow it away" value to minimize our taxes.

Always contact your insurance company to get a quite on mileage, year and model and specifically ask what their declared value would be if totalling out the vehicle. Then go to the DMV regarding their appraisal.

I just bought a '07 w/ 78k and paid $5,800 private party and I think I got a great deal.

My state does not assign a value like your state. It is pretty amazing what high miles versions still sell for. I'd say your state charged you full dealership asking prices.

But...
I had to pay 7% sales tax on that $5,800 = $406.
So...
You got off cheaper at $187

Yep had this happen before, they will go with market/nada values if you got too good of a deal... Had a non running Porsche they wouldn't not charge me taxes for full value on unless I bought a mechanics quote in for the needed work.

I'm just amazed that sales tax on $8130 is under $200 in your state. It'd be over $800 here

New cars are expensive either way you cut it! I could have used that $400 that it costed me to tittle and tag this prius to keep my volvo 240 running a good 5 more years.

Michigan registration fee is based on MSRP. So my '95 M3 registration costs the same as my 2010 Odyssey. And the '07 525xi is another $50 higher than that! Total for all 3 was $577.

When my wife filed for temporary disability 2 years ago she was rejected because my 78 zephyr wagon was valued at 10,000 according too the state of ohio. I love the car but its certainly not a 10k car so im not sure were they get there values.

In reply to dropstep:

Maybe they thought it was a 2008?

here in MN, an '08 anything would cost $42 or so to register every year. well, anything i would own- pretty sure they nail you for more taxes on something like a Ferrari or whatever.

Here in OK, it's 3.5% of purchase price when you first transfer the title. Period. They don't look at anything else than the sales contract on a new car, or the bill of sale on a used car.

Knurled wrote: In reply to dropstep: Maybe they thought it was a 2008?

No clue, the paperwork just said that we owned vehicles as non primary drivers that exceeded the 3k allowed.

89 mustang was valued at 2200 and the 78 zephyr was 10k. This was about 2 months after a pristine original 30k mile manual trans wagon sold for 18k. I figure it inflated whatever value they use.

Damn! I thought CA was bad because they collect sales tax on every transaction of the vehicle, but on current purchase price. This does encourage fudging purchase price on DMV paperwork though.

Basing tax on the original MSRP is harsh. At least most of the tax rates are low at least.

DanielCut wrote: I'm just amazed that sales tax on $8130 is under $200 in your state. It'd be over $800 here

$1219.50 here (15%) Plus they'll take whatever value you give them at the time and you pay on that, but then they "check" it later and if they think your price is too low you'll get a bill in the mail.

You should be paying sales tax on what you pay for the car. That's the way we do it, but even that is capped at $300. That may be changing due to the need to highway funds. We also pay property taxes on cars each year, and that is based on God only knows what. Years ago they jacked up the taxes on Hardley Davidsons and on Ford Explorers, just because they were so popular.

Heh. Here in Manitoba it's 8% tax on purchase price or book value, whichever is higher (no haggling) for private party purchase.

For dealer sales it's the 8% HST plus 5% GST on the purchase price.

This is for new or used car sales. For private party the taxes are paid when you register/insure the car, so if you buy a car and flip it it's just a $15 Tranfer of ownership fee.

And people think I'm nuts because I have personalized plates in Ohio... it's an extra $50 per year, on top of the $55/year for registration in my county. BFD. It makes me giggle and it gives the state an extra shovelful of asphalt in a pothole or two.

novaderrik wrote: here in MN, an '08 anything would cost $42 or so to register every year. well, anything i would own- pretty sure they nail you for more taxes on something like a Ferrari or whatever.

Last i heard my friends 09 ms3 was still a couple hundred every year. My 04 was 50 something for renewal.

having to pay sales tax every time a vehicle is sold goes up my ass sideways the person who bought it new paid the full monty so with that in mind we do gift forms on used cars all the time they acess a 25.00 fee at the registry for using the form alot less than what sales tax would be (you dont have to be related!) if you are a relative its automatically free a dealer cant use a gift for in mass its mvu-24 form for a strait up GIFT! glenn

I got hosed a couple times in TX. I bought a 98 F150 with 140k on it. State "black book" value was $8240. Eight grand for a 15 year old truck with 140k. I paid $600 tax on a $2500 purchase.

The only way in TX to challenge it is to have it appraised which only gets reviewed by the state. They don't have to do anything with the appraisal. Plus the appraisal costs more than the taxes.

Most of the cars I've bought have only been $500 as far as the CA DMV is concerned.

Our highways are paid with gas taxes, so I put more than my fair share in.

novaderrik wrote: here in MN, an '08 anything would cost $42 or so to register every year. well, anything i would own- pretty sure they nail you for more taxes on something like a Ferrari or whatever.

Actually, in MN the fee is $35.00 +additional fees for vehicles 10 years or older unless you paid over $3000.00. Then you are assessed 6 1/2% based on the selling price. New and newer vehicles are assessed 6 1/2% based on selling price and 6 1/2% of state determined value for yearly registration until 10 years old.

Late to the party but consider yourself lucky.

Since about 2014 Georgia collects sales tax every time a car sells, based on a book value. If you lease a new car, you pay full sales tax. If you subsequently purchase it at the ending to the lease, guess what.. you pay sales tax on the purchase.

It's serious bullE36 M3.