[jlstyle]

I’m currently in process of buying a car out of state, sight unseen.
Seller is very diligently responding in mature manner and I have a confidence on him.
I’m also having the pre purchase inspection done today to verify any possible issues before committing to it.
Purchase will be through the credit union he will put me in contact with.

Is there anything else I should look into before I make my move?

Also, in order to save tax on the purchase, should I make a certified check and send it to him and have him write lower purchase price on the bill of sale?
Or can I just use his credit union (who is currently the lien holder of his car I presume) to make all the transaction? Is bill of sale something we can write or does the lien holder have to write out?

It is first time for me and him to buy/sell car over the internet, let alone sight unseen.

Please shed some light to get the most benefit out of doing private purchase.

Thank you.

Jung

[stevenc]

The only problem with writing a lower sales price on the bill of sale is if the transaction goes south, the piece of paper you have to prove the transaction will be fake / inaccurate.

I sold my last BMW sight unseen. I received a cashiers check, once it cleared i sent them the title and then let them make arrangements for transport. Went real smooth.

[Run Silent]

Originally Posted by jlstyle

I’m currently in process of buying a car out of state, sight unseen.
Seller is very diligently responding in mature manner and I have a confidence on him.
I’m also having the pre purchase inspection done today to verify any possible issues before committing to it.
Purchase will be through the credit union he will put me in contact with.

Is there anything else I should look into before I make my move?

Also, in order to save tax on the purchase, should I make a certified check and send it to him and have him write lower purchase price on the bill of sale?
Or can I just use his credit union (who is currently the lien holder of his car I presume) to make all the transaction? Is bill of sale something we can write or does the lien holder have to write out?

It is first time for me and him to buy/sell car over the internet, let alone sight unseen.

Please shed some light to get the most benefit out of doing private purchase.

Thank you.

Jung

see my comments below:

1) PPI is a must, and it looks like you have this covered.

2) I was able to have my guy FaceTime with me and do a walk around on the car along with starting and revving, etc. This went a very long way in making me comfortable with the purchase. I would encourage this, or if he isn't an iphone guy, then use Skype or Whatsapp.

3) Regarding your comment about the tax savings on reducing the purchase price documentation. Please don't do this, it is tax fraud - a federal crime and a felony. See statute below:


Title 26 USC § 7201-Attempt to evade or defeat tax
Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to penalties provide by the law, be guilty of a felony

+ Shall be imprisoned not more than 5 years
+ Or fined not more than $250,000 for individuals
+ Or both , together with the costs of prosecution

[Ickdeep]

Originally Posted by jlstyle

I’m currently in process of buying a car out of state, sight unseen.
Seller is very diligently responding in mature manner and I have a confidence on him.
I’m also having the pre purchase inspection done today to verify any possible issues before committing to it.
Purchase will be through the credit union he will put me in contact with.

Is there anything else I should look into before I make my move?

Also, in order to save tax on the purchase, should I make a certified check and send it to him and have him write lower purchase price on the bill of sale?
Or can I just use his credit union (who is currently the lien holder of his car I presume) to make all the transaction? Is bill of sale something we can write or does the lien holder have to write out?

I've bought two cars without seeing them before (WRX and C63) and here is what I did
- Get the VIN and run a quick CarFax (its like $5)
- I had each car go to a certified dealer (and not one that they normally go to) and get an inspection done. Only if the results were good would we continue the conversation
- Ask for service history and any receipts

Because the loan is with the bank, you CAN NOT lower the price. You have to pay the bank directly and they will release the title and then give the seller the remaining funds. If you decided to pay the seller first & then get the title, you run the risk of the seller just taking the funds.

I currently have an offer for my car from California so that's what I recommended to him; if he doesn't want to come see it first. https://f10.5post.com/forums/showthread.php?t=1515543

Best of luck!

[Darth One]

i agree with the tax fraud comment. It's not worth it. Also, if i was the seller, i would immediately think that I'm dealing with a shady person and wouldn't trust you after that.

[jlstyle]

Thanks all for the quick reply.
It looks like I'm on the right track. And since the transaction paper is going to be handled via lien holder, I'll just pay up the required tax.

[Never_Enough]

Originally Posted by usshelena725

3) Regarding your comment about the tax savings on reducing the purchase price documentation. Please don't do this, it is tax fraud - a federal crime and a felony. See statute below:

[/i]

Yea, let the man steal even more of our hard earned $

[JamesWWIII]

Originally Posted by Never_Enough

Yea, let the man steal even more of our hard earned $

Better than a stay in Federal pound-you-in-the-ass prison if you get caught, or the fine you'd have to pay which would far exceed the tax you're trying to dodge.

[Run Silent]

Originally Posted by Never_Enough

Yea, let the man steal even more of our hard earned $

Hey man, I didn't say I agree with our taxes, nor agree how they are collected - but, they are the law and you will go to jail if you don't pay. Even the Bible says render unto Caesar what is Caesar's.

[Never_Enough]

Originally Posted by JamesWWIII

Better than a stay in Federal pound-you-in-the-ass prison if you get caught, or the fine you'd have to pay which would far exceed the tax you're trying to dodge.

You're doing it wrong

[Never_Enough]

Originally Posted by usshelena725

Hey man, I didn't say I agree with our taxes, nor agree how they are collected - but, they are the law and you will go to jail if you don't pay. Even the Bible says render unto Caesar what is Caesar's.

I'm Agnostic so...

[JamesWWIII]

Originally Posted by Never_Enough

You're doing it wrong

That's what every smartass says until they get busted.

[DETRoadster]

Originally Posted by Darth One

i agree with the tax fraud comment. It's not worth it. Also, if i was the seller, i would immediately think that I'm dealing with a shady person and wouldn't trust you after that.

Not to mention, you're asking the seller to commit fraud on your behalf, which is putting him in a tough situation. Sounds like you are doing the right thing on this front but i just wanted to mention the nuance. it's not just the buyer committing fraud when a lower price is put on the documents, it's both the buyer and the seller conspiring to defraud the man. And the man dont like that!

[qba335i]

Last year I was in the process of buying a highly modified Ducati motorcycle. Made arrangements with Ducati dealer to complete the PPI and assist with shipping of the bike to Chicago. They sold and modified the bike so were very helpful with the whole process. Unfortunately on the way to the dealer the bike got totaled (rear ended)... so I never received it.

I would prefer to complete the transaction in person, but if not possible work with the authorized dealer to assist. They will usually help with PPI, shipping for a small fee.

[wdb]

Talking about how to do tax fraud on a public forum != smart.