Tips on Buying Cars: Title, bureau of motor vehicles, acution

Question
I bought a used car from my friend that got the car from an auction.  When he gave me the title the seller's and buyer's information was filled out (not with my nor his information).  Now, what am I supposed to do to get the title in my name.  Also, I paid my friend less than what he bought if for at the acution.  Now he is telling me that I have to pay for sales tax on the total of what he paid.  I don't think that's right.  I live in New Jersey.  

Answer
Good Morning,

Thanks for your question. This is a sticky situation that sounds like you might need advice from your bureau of motor vehicles, or even an attorney.

Based on your statement, it sounds like your friend doesn't have an auction license, and that he bought the vehicle from someone who does. If this is the case, the title would be in that person's name, not your friends.

I understand paying tax on the full price paid for the vehicle, which is probably state law in NJ. I don't understand why your friend would sell it to you for less than he paid for it.  

Regardless, you need to know who the current title holder is, and if they've received the money you paid, or not. It sounds like you paid money to your friend who may not have paid the seller (current title holder), otherwise, he would have the title for you. In any case, the current title owner will not release the title to you until he gets paid.

Sorry that I can't give you any more information than this. I hope this helps.

Regards,


Ron