Tips on Buying Cars: Car Buying, motor vehicle purchases, motor vehicle department

Question
How do my husband and I go about buying a used car from a private seller? Do we pay taxes on this car- Since we haven't done it before we need some answers
Thank you
Sara  

Answer
Sales tax on motor vehicle purchases varies from state to state, but in most you'll pay tax when you go to register the vehicle at your state's motor vehicle department.  Check your own state's website BEFORE you purchase the vehicle so you'll know what to do.  Here in New York, the seller needs to sign an affidavit of sale, stating how much they sold the car for, whether or not it was a gift, if there's a personal or business relationship between buyer and seller, and if work had been performed in exchange for all or part of the value of the vehicle.  Obviously, NY is looking for the market value of the vehicle by asking such questions, which is what they base the tax on.  When buying from a private seller, be just as cautious as when buying from a used-car dealer.  Ask to see the title (to make sure there's no salvage or damage notations, along with no liens), and make sure you can take the car to an independent repair shop for a mechanical inspection (if you're not able to judge a used car on your own).  People tend to think they're safer buying from an individual than a dealer, but I've seen more tricks pulled by people trying to get rid of a car that no dealer will go near.  In fact, that's always a question you should be asking yourself when looking at a prospective vehicle:  "why does this person want to sell this car?"