BMW M3 Forum (E90 E92)

BMW Garage BMW Meets Register Search Today's Posts Mark Forums Read


Go Back   M3Post - BMW M3 Forum > BIMMERPOST Universal Forums > General Automotive (non-BMW) Talk + Photos/Videos
 
EXXEL Distributions
Post Reply
 
Thread Tools Search this Thread
      08-08-2018, 12:23 PM   #1
jlstyle
Lieutenant Colonel
jlstyle's Avatar
171
Rep
1,655
Posts

Drives: 2015 X5 Msports
Join Date: Jun 2008
Location: USA

iTrader: (0)

I知 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知 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
Appreciate 0
      08-08-2018, 12:52 PM   #2
stevenc
Coming Soon
United_States
99
Rep
933
Posts

Drives: 2015 BMW M4 Alphine White MT
Join Date: Apr 2008
Location: Houston, TX

iTrader: (0)

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.
Appreciate 2
Ickdeep1140.00
FCobra941998.50

      08-08-2018, 01:17 PM   #3
usshelena725
Silent Service
usshelena725's Avatar
United_States
292
Rep
274
Posts

Drives: 2013 328i E93
Join Date: Mar 2017
Location: East Tennessee

iTrader: (0)

Garage List
Quote:
Originally Posted by jlstyle View Post
I知 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知 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
As a licensed CPA who just purchased his 2013 E93 sight unseen about 18mos ago, 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 ァ 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
Appreciate 5
Ickdeep1140.00
Darth One865.50

      08-08-2018, 01:24 PM   #4
Ickdeep
Lieutenant Colonel
Ickdeep's Avatar
United_States
1140
Rep
1,927
Posts

Drives: '13 F10 535Xi
Join Date: Jul 2015
Location: Seattle, WA

iTrader: (1)

Garage List
2013 BMW 535i  [5.00]
Quote:
Originally Posted by jlstyle View Post
I知 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知 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!
Appreciate 0
      08-08-2018, 01:27 PM   #5
Darth One
hello how are you
Darth One's Avatar
United_States
866
Rep
1,759
Posts

Drives: M4 GTS
Join Date: Jul 2008
Location: FL

iTrader: (0)

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.
Appreciate 5
      08-08-2018, 01:49 PM   #6
jlstyle
Lieutenant Colonel
jlstyle's Avatar
171
Rep
1,655
Posts

Drives: 2015 X5 Msports
Join Date: Jun 2008
Location: USA

iTrader: (0)

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.
Appreciate 1
Ickdeep1140.00

      08-08-2018, 02:29 PM   #7
Never_Enough
I'm a loser
Never_Enough's Avatar
United_States
925
Rep
2,338
Posts

Drives: Satan's Chariot 2.0
Join Date: Sep 2013
Location: PA

iTrader: (6)

Garage List
Quote:
Originally Posted by usshelena725 View Post

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 $
Appreciate 0
      08-08-2018, 02:32 PM   #8
JamesWWIII
Banned
United_States
2824
Rep
420
Posts

Drives: 2019 440i Coupe
Join Date: May 2018
Location: South Carolina

iTrader: (0)

Garage List
Quote:
Originally Posted by Never_Enough View Post
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.
Appreciate 2
      08-08-2018, 02:37 PM   #9
usshelena725
Silent Service
usshelena725's Avatar
United_States
292
Rep
274
Posts

Drives: 2013 328i E93
Join Date: Mar 2017
Location: East Tennessee

iTrader: (0)

Garage List
Quote:
Originally Posted by Never_Enough View Post
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.
Appreciate 0
      08-08-2018, 03:00 PM   #10
Never_Enough
I'm a loser
Never_Enough's Avatar
United_States
925
Rep
2,338
Posts

Drives: Satan's Chariot 2.0
Join Date: Sep 2013
Location: PA

iTrader: (6)

Garage List
Quote:
Originally Posted by JamesWWIII View Post
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
Appreciate 0
      08-08-2018, 03:01 PM   #11
Never_Enough
I'm a loser
Never_Enough's Avatar
United_States
925
Rep
2,338
Posts

Drives: Satan's Chariot 2.0
Join Date: Sep 2013
Location: PA

iTrader: (6)

Garage List
Quote:
Originally Posted by usshelena725 View Post
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...
Appreciate 0
      08-08-2018, 03:10 PM   #12
JamesWWIII
Banned
United_States
2824
Rep
420
Posts

Drives: 2019 440i Coupe
Join Date: May 2018
Location: South Carolina

iTrader: (0)

Garage List
Quote:
Originally Posted by Never_Enough View Post
You're doing it wrong
That's what every smartass says until they get busted.
Appreciate 1
      08-08-2018, 03:10 PM   #13
DETRoadster
Space Force - 4 Star General
DETRoadster's Avatar
2816
Rep
1,759
Posts

Drives: M2 MG 6MT / Moto Guzzi V7
Join Date: Jul 2016
Location: Seattle

iTrader: (0)

Quote:
Originally Posted by Darth One View Post
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!
Appreciate 3
      08-08-2018, 05:26 PM   #14
qba335i
Second Lieutenant
132
Rep
223
Posts

Drives: 335i
Join Date: Feb 2011
Location: Chicago

iTrader: (0)

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.
Appreciate 1
FCobra941998.50

      08-08-2018, 09:58 PM   #15
wdb
dances with roads
wdb's Avatar
United_States
945
Rep
1,706
Posts

Drives: 2007 Z4MC, 2007 3.0si Cpe 6spd
Join Date: Jul 2015
Location: the perimeter

iTrader: (4)

Talking about how to do tax fraud on a public forum != smart.
Appreciate 0
Post Reply

Bookmarks

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 08:18 AM.




m3post
Powered by vBulletin® Version 3.7.0
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
1Addicts.com, BIMMERPOST.com, E90Post.com, F30Post.com, M3Post.com, ZPost.com, 5Post.com, 6Post.com, 7Post.com, XBimmers.com logo and trademark are properties of BIMMERPOST