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i just bought my first bike!! now the question of the hour "how much did i pay" title

hey so i just bought my first bike 04 cbr600rr. she is blue and a little rough around the edges but that is all part of the hobby..making her perfect and making her mine :cruising:. now the real question that i am here about. so i paid $3200. now on the title the seller and i didn't put anything down and he left it up to me to what i should say that i bought for it..could it hurt me in any way going forward if i just put $1000 instead of the actual price? (and use the excuse that oh...idk the engine was seized and i rebuilt it...) or should i just put the whole 3200 that i actually got it for and pay the additional taxes etc..i am going to have progressive insurance. i am just thinking that GOD FORBID i total the bike and file a claim would progressive give me back the bikes worth..or what i paid for it and was stated on the title?
 

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if you're going to commit fraud, at least make it worth your while. breaking the law to save yourself taxes on 2200 bucks is ridiculous.
 

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Put $20. Uncle Sam doesn't know the financial arrangement between you and the previous owner.

-People at the DMV could care-less.
-If you have full-coverage insurance and bike is totaled, they will go by KBB value....not by what your title says you paid.
-No one with any authority will ever ask or look into it.

This is a loop-hole that people have been using for years.
 

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Congrats on the new bike, $3200 is a good for that bike. Taxes on that in jersey would be about a little over $200 dollars. If you only put $1000 down it would be about $70. That choice is up to you and you only. If it was me I would just pay the full taxes on it but if you decide to put down $1000 I highly doubt they will question you. Odds are they will have no idea what an 04 sportsbike is worth especially one that is 10 years old.

As far as insurance you are going to have to ask someone who has progressive. I have all state and they told me that they pay out what the bike is worth through their source. I'm sure progressive is similar because say I bought that bike brand new in 03 totaled it tomorrow, I highly doubt they would give me $8500 or what ever the bike would cost in 03.
 

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Congrats on the new bike, $3200 is a good for that bike. Taxes on that in jersey would be about a little over $200 dollars. If you only put $1000 down it would be about $70. That choice is up to you and you only. If it was me I would just pay the full taxes on it but if you decide to put down $1000 I highly doubt they will question you. Odds are they will have no idea what an 04 sportsbike is worth especially one that is 10 years old.

As far as insurance you are going to have to ask someone who has progressive. I have all state and they told me that they pay out what the bike is worth through their source. I'm sure progressive is similar because say I bought that bike brand new in 03 totaled it tomorrow, I highly doubt they would give me $8500 or what ever the bike would cost in 03.
Great, thank you for the advice, that's what i thought. :banger:
 

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if you're going to commit fraud, at least make it worth your while. breaking the law to save yourself taxes on 2200 bucks is ridiculous.
Its technicallly not fraud, but a loophole for private purchases.


To the OP, you're fine putting any value you choose as long as it is within reason.
For example, I bought my dad's 2003 Toyota Camry last year for $7k but I only put $100 on the Title. The people at the DMV could care less. I paid $6 in taxes plus Tag/Registration/Title fees which saved me a lot of money. The way I see it, when my dad bought the car brand new over 10yrs ago, he already paid the full amount of taxes on it when he purchased it.

In case of an accident, the Insurance will pay the KBB value of the vehicle, not what you paid for it.


Another example: If you bought a car for $5000 from a good friend or family, but the car is worth $15000, the insurance will still pay you from the actual value of $15k in case it is totaled, not what you paid ($5k).

So in essence, it doesn't matter what you paid or what value you put in the Title. But keep in mind this is for Private Sales only.
 

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Its technicallly not fraud, but a loophole for private purchases.


To the OP, you're fine putting any value you choose as long as it is within reason.
For example, I bought my dad's 2003 Toyota Camry last year for $7k but I only put $100 on the Title. The people at the DMV could care less. I paid $6 in taxes plus Tag/Registration/Title fees which saved me a lot of money. The way I see it, when my dad bought the car brand new over 10yrs ago, he already paid the full amount of taxes on it when he purchased it.

In case of an accident, the Insurance will pay the KBB value of the vehicle, not what you paid for it.


Another example: If you bought a car for $5000 from a good friend or family, but the car is worth $15000, the insurance will still pay you from the actual value of $15k in case it is totaled, not what you paid ($5k).

So in essence, it doesn't matter what you paid or what value you put in the Title. But keep in mind this is for Private Sales only.
Bullsh1t, it's tax fraud.
 

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Its technicallly not fraud, but a loophole for private purchases.


To the OP, you're fine putting any value you choose as long as it is within reason.
For example, I bought my dad's 2003 Toyota Camry last year for $7k but I only put $100 on the Title. The people at the DMV could care less. I paid $6 in taxes plus Tag/Registration/Title fees which saved me a lot of money. The way I see it, when my dad bought the car brand new over 10yrs ago, he already paid the full amount of taxes on it when he purchased it.

In case of an accident, the Insurance will pay the KBB value of the vehicle, not what you paid for it.


Another example: If you bought a car for $5000 from a good friend or family, but the car is worth $15000, the insurance will still pay you from the actual value of $15k in case it is totaled, not what you paid ($5k).

So in essence, it doesn't matter what you paid or what value you put in the Title. But keep in mind this is for Private Sales only.

intentionally misrepresenting the price paid in a transaction for the purpose of tax evasion is absolutely fraud, it is not a "loophole"

loop holes don't require you to LIE about something.

got it?
 

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Discussion Starter #10
yes it is tax fraud technically i wasn't asking if it was fraud or not just wanted to see if it could come back to bite me in the A$$ later down the line with regard to insurance.
 

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I know someone who's done this with every used vehicle they've purchased >9 and it's never bit them in the ass. You put the full amount you're r just paying the state even more than they deserve.
 

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We are no longer able to do this in Texas. The DMV now goes by Kelly Blue Book no matter what you payed. Uncle Sam gets his one way or another.
 

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We are no longer able to do this in Texas. The DMV now goes by Kelly Blue Book no matter what you payed. Uncle Sam gets his one way or another.
They do KBB for ad valorem tax here but sales price for sales tax.

Sales tax on used items transferred between private parties is totally absurd and should not exist.
 

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For God's sake what happened to being honest go ahead and do what your pocket tells you but guess what pay back is a MEFFERBITCH do not be wondering why karma smaked you upside the head one day "" Oh God why me what have i done wrong "
 
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