Question for people who know DMV TTL rules
 

Hi guys, my gf and I are going to check out a car for her in the near future. The deal would be if the gf likes it, we would potentially trade her vehicle to the guy and make an even trade. Does anybody know what it would take/cost to transfer the titles into each other's names for TTL at the DMV? This is new to me and I tried searching around and some people say you still have to pay the taxes, but then somewhere I read that if it's an even trade, no taxes need to be paid? Her vehicle is an 03 and the one she would be trading for is an 04. Any help is appreciated, thanks!

Re: Question for people who know DMV TTL rules
 

Just call your local DMV. They have all the answers. But I think if it's over 7 yrs old taxes don't matter it's just a flat rate.

Re: Question for people who know DMV TTL rules
 

As taxes are already paid on the first unit it works as follows.
Old car was purchased for $5000 + taxes
Old car is worth say $4000 trade in and has a loan for $3900

New car is worth $20,000
Sale price of car is discounted to $16,000 + taxes
Then the $3900 is added to the price of the car
Total car price is $21020 ($16k + 7% tax + $3900 loan payoff).

If taxable value is the same on both assets, taxes shouldn't be due as taxes were already paid on the sale once. I would call the DMV to confirm, but I would imagine this would qualify as a $1 sale.

Re: Question for people who know DMV TTL rules
 

Niteryder is correct, but that's only through a registered dealer. If this is a private party sale, both pay sales tax on the typical market value of each car, not $1. Dealers will rarely do a straight swap, which leads me to believe this is a private party deal.

Re: Question for people who know DMV TTL rules
 

As yeah very good point! I was thinking dealer for some reason.

Taxable Fair Market Value would be what is paid on. Don't try to tell the DMV you sold it for $1 under the $3k or whatever the taxable limit is now, they won't buy it and will probably scowl at you.

http://dmvlocations.net/state/MN.html

Re: Question for people who know DMV TTL rules
 

For the 40$ flat fee it has to be over 10 years old AND under 2,999. Anything over 2,999 is taxed and anything newer that 10 years is taxes even if under 3000. Has to be BOTH. But as long as its over 10 years old you can usually lie and put 2,000 or 2,500 they don't check,

Re: Question for people who know DMV TTL rules
 

Some clarification:

Private Party Trade
2003 Nissan Xterra potentially trading for 2004 Toyota Matrix.
Both worth about 5-6k in value.

I might just stop into our local DMV in the next day or so and see what they say also. Thanks guys for the help!

Re: Question for people who know DMV TTL rules
 

You will both pay tax on those vehicles. However, you might get away with listing the Xterra at $2999 and get the flat tax, depends on the miles, it fits by the 10-year rule. I don't think I'd risk it for ~$350 in tax.

Re: Question for people who know DMV TTL rules
 

So if there is no money exchanged (straight trade), how do they figure out how much in taxes you pay? Do they go by the value of the vehicle then?

Re: Question for people who know DMV TTL rules
 

So you will have to pay tax on both cars, unless you can get them to buy that the 2003 was under $3k. The other one must be paid.

Re: Question for people who know DMV TTL rules
 

They have a reference manual with general NADA style pricing. Mostly it would be used if a number looks way off, generally they look at it quickly and process it. Even if the DMV misses it, it can still get flagged from St. Paul and a letter is sent to you asking for more information like receipts and such. That's a pretty rare occurence though. Let your conscience be your guide on the price you list.