Title transfer in CA??

Discussion in 'Motorized Vehicles' started by spradhan01, Apr 12, 2013.

Thread Status:
Not open for further replies.
  1. spradhan01

    spradhan01 Notebook Virtuoso

    Reputations:
    1,392
    Messages:
    3,599
    Likes Received:
    5
    Trophy Points:
    106
    Me and my roommate bought a car while we were at school in Minnesota.
    The title was in his name. After graduating, I moved to California for a job. Now, my friend left the country and shipped the title and car to me.
    Does anyone know what's the process of transferring the title to me in California? I would presume it should be considered gift or something else?
    I need to do SMOG check. What other stuff are needed?

    Thanks
     
  2. Tsunade_Hime

    Tsunade_Hime such bacon. wow

    Reputations:
    5,413
    Messages:
    10,722
    Likes Received:
    1,203
    Trophy Points:
    581
  3. ALLurGroceries

    ALLurGroceries   Super Moderator

    Reputations:
    15,686
    Messages:
    7,126
    Likes Received:
    2,256
    Trophy Points:
    331
  4. Qing Dao

    Qing Dao LORD OF THE UNDERWORLD

    Reputations:
    1,588
    Messages:
    1,779
    Likes Received:
    300
    Trophy Points:
    101
    It will be exactly the same as if you just bought the car yourself from out of state.
     
  5. spradhan01

    spradhan01 Notebook Virtuoso

    Reputations:
    1,392
    Messages:
    3,599
    Likes Received:
    5
    Trophy Points:
    106
    Since I didn't bought it from my friend, so can I file it as a gift? The thing is it had some transmission issues and we fixed it together. Since the time it was bought, it was under my insurance and I paid like 3k+(bill under my name from Mercedes) to fix the transmission and other stuff where he bought the car for 4k.
     
  6. Qing Dao

    Qing Dao LORD OF THE UNDERWORLD

    Reputations:
    1,588
    Messages:
    1,779
    Likes Received:
    300
    Trophy Points:
    101
    I checked the process in California. Yes, you will file it as a gift because that is what it is. But because he isn't an immediate member of your family, it doesn't make it any different than if you bought the car from him. However, instead of paying taxes based on your purchase price (because it is 0), you pay taxes based on if you paid blue book value for the car.
     
  7. spradhan01

    spradhan01 Notebook Virtuoso

    Reputations:
    1,392
    Messages:
    3,599
    Likes Received:
    5
    Trophy Points:
    106
    I just checked the bill of sale from the dealer when we got the car. Its around $3200. So, will I be paying use tax for $3200 or $7000 which is what its worth now. If I have to pay taxes for $7000 which will be roughly around $900, it will not make sense to me as I already spent a lot of money in it. :(
     
  8. J.Dre

    J.Dre Notebook Nobel Laureate

    Reputations:
    3,700
    Messages:
    8,316
    Likes Received:
    3,819
    Trophy Points:
    431
    In my state you can claim it as a gift and you won't pay a dime. You need a good reason though. You can't just say, "Dude gave me his car, cool huh?" and expect them to believe you. I'm sure you could talk with them and explain the situation, about why he gave you his car as a gift -- you were his only friend in America and you were like brothers, we shared the vehicle even though it was in his name, etc. They may ask for a signed letter from him agreeing with what your claiming though.
     
  9. spradhan01

    spradhan01 Notebook Virtuoso

    Reputations:
    1,392
    Messages:
    3,599
    Likes Received:
    5
    Trophy Points:
    106
    He already left the country. For the proof, I can show the DMV the insurance in my name from the time it was purchased and I have bills from Mercedes on my name for more than 3k. Hope it would be enough.
     
  10. Qing Dao

    Qing Dao LORD OF THE UNDERWORLD

    Reputations:
    1,588
    Messages:
    1,779
    Likes Received:
    300
    Trophy Points:
    101
    They will just look at the book sale value of your car's model and year to determine how much you should pay in taxes. This is the standard everywhere when there is no bill of sale and in many cases

    But every state is different. California will readily accept that a vehicle was given as a gift, because it doesn't matter as far as paying taxes or not paying taxes. The regulations for California state that only a car title transfer between immediate family members may be done without paying taxes.

    But you being insured to drive a car has nothing to do with your ownership of the vehicle. My company can own my car, but I would be insured on it. Likewise, many parents own their children's cars even though only the child might be insured on them. This is a pretty crappy situation, but this is exactly the reason why they let you put multiple owners' names on a car title. If you have to pay taxes on the book value of the car, maybe you can convince them that the car is worth a lot less than book value. Or maybe you could write up a bill of sale and get your friend to sign it (;)) and hope they use the sale price you chose to base the taxes on.
     
Loading...
Thread Status:
Not open for further replies.

Share This Page