Tips on Buying Cars: Title Transfer, jim sears, tax evasion


Question
I have just sold my car and the buyer has asked me to list a lower price on the title. When I read the title I'm unclear if it is the buyer or the seller who notes the price and if it is me (seller) can I get into trouble for not noting the actual price. I feel very uncomfortable about it.
Thanks.

Answer
The reason the buyer wants you to put a lower price on the title is that he is trying to avoid paying higher sales tax. This was a practice some time ago, and was pretty widespread. It is, however considered to be a form of tax evasion. Most states or municipalities now do not collect sales tax on a vehicle sold through private parties, so It would be unnecessary to do this. It is usually required that the seller fills out the title to the purchaser. I have seen where the seller just signs the title and lets the buyer fill in the blanks. But for just a matter of a few dollars, I would rather make sure that things are done properly. I would fill the title out 100% and not worry of any problems. Best of luck with your sale---Jim Sears.