anybody know how to trade cars??
Straight up car to car ...

S. cali

 

The easiest way is to sell your car to the other guy for a nominal amount on paper. The other guy sells you his for an equal nominal amount on paper. prepare all normal bill of sale paperwork/titles etc. and complete the transfer. It is 2 sales not a trade.

 

Just transfer the titles and make a equal amount of bill of sale for tax purposes. That's it! Good luck

 

Can someone explain little bit more bout equal amount of bill of sale part??

 

Pretty simple as I did one of these a long time ago. You write the guy a bill of sale saying you sold him the car for x amount of dollars. He writes you a bill of sale for the same amount for the car he gives you. then all you do is take your signed over title and the bill of sale to the DMV and transfer the title and license it in your name. Now, here is the tricky part. Watch what you put on the bill of sale for a dollar amount. I am sure all of us have an idea or two, but since i traded an old hot rod for another old hot rod it was OK to put down 500 bucks so I did not have to pay a lot of sales tax on the car. So if the car is a 2005 for example, I would watch putting 500 dollars on the bill of sale as someone at the DMV might throw the flag on that. Hope that helps.

 

No need to do all that, at least here in MN. If you're swapping vehicles of equal value, you pay ZERO NADA ZILCH NUTTIN in sales tax, 'cause the sales tax is on the difference in the two prices, not on the price of each vehicle. I know that 'cause I recently swapped motorcycles with a buddy and that's how the license bureau handled it. The same thing applies if you're using a lesser-valued vehicle as part of the price of the vehicle you're buying; the cheaper vehicle is a trade-in and the sales tax is on the difference of the vehicles' values.

'Course the OP is from CA and might be SOL trying to use MN rules . . . .

 

Nice to know. when i did it I lived in Nebraska. Now that I live here in the frozen tundra, I will remember that. Thanks!

 

what if one of the party still havnt pay off the loan yet? diffrent story?

 

For California, go to this site... it should have everything you need:
http://www.dmv.org/autos/

I found a bill of sale form at this page: http://www.dmv.org/ca-california/forms.php Direct Link -> http://www.dmv.ca.gov/forms/reg/reg135.pdf

 

Certainly is. The amount due on either owners car would have to be paid at the time of the transaction. This payment would be either in cash to the loan holder or by the new owner financing or refinancing the remaining loan amount and paying the current loan off. Leaving an existing loan in the previous owners name and paying it off over time is not a good deal for either party if something goes wrong, regardless of who is supposed to pay.