Well I knew that you don't pay the sales tax to the private owner, I own a business that deals with sales tax so I know a little bit about it, but for this I had no clue if I did or didn't because some of my close friends and family were telling me different things.

No sales tax ads are typically because they absorb the tax into the purchase price and while they tell you ...No tax..they still pay it.

AND we pay taxes on our cars every year.

As another poster said, check with your state'* DMV.

Some states tax a percentage based on a Blue Book value, others based on the sale price written by the seller on transfer title. Many tax again each year at registration time out to "x" number of years on a declining scale, starting from that initial value. Many pile on a "luxury" tax or a "gas guzzler" tax, depending on the make and model. Some (like CA) throw in an "extra" tax if the car comes from out-of-state.

My friend, the only way to avoid taxes is to be filthy rich

On a rate that is insanely higher than anyone could imagine.

Here in Texas, you either have to pay an additional percentage sales tax, private or not, or you have the option of paying a "Gift Tax" if the person is willing to document it as a "gift" to you, lol

I think thats what they were talking about being a relative.

Well just talked to the DMV and all I can say is





I dont have to pay sales tax on a car I buy from a private seller.

Wow, I can't believe that.Very cool.
Here you pay on the "sales price", but if it is less than Blue Book value the seller has to give a signed statement as to why they are selling for that.