Buying cars from private owners, Feds get suspicious

Brizzy

Brizzy

Active Member
If someone were to buy a $25k Benz from a private seller with dirty money, would anyone get suspicious?
Even if the buyer is a college student without a job?
I know on the title or at the DMV or something you have to report how much the car was bought for. Does this info get reviewed? Or could someone get away with buying expensive cars in cash from private dealers and get away with it?
Thanks, I'm just jw'ing
 
Rancho Cucamonga

Rancho Cucamonga

Active Member
I'm not out buying a bunch of cars but I treated myself to a newer used pickup and a muscle car I wanted all my life when I moved to where I live now. I paid cash in another state for both and titled in state where I live of course. Both autos were about 25k each, but each private seller fudged down the purchase price by a significant amount to help with "taxes and fees". I had no issues and a purchase like this every few years shouldn't attract any attention.
I read a lot of local news from places other then where I live and I was reading about this Heroin distribution network out of Cleveland that got popped last year because the guy that laundered their money got popped first, he bought a million dollar home, had about 2 million in bank accounts and had over a dozen luxury autos in his name but no income to justify any property let alone this amount. The point of what I'm saying is, don't make it a habit.
 
weedx

weedx

Member
be smart, don't raise suspicion with the seller, just ask if he can lower the price a bit to save on title fees.

people buy cars for really cheap, family members?, cars with problems? hell I bought a two year old corolla for "$500" and no one said a fkn thing :)
 
Bakatare666

Bakatare666

Well-Known Member
Brizzy said:
If someone were to buy a $25k Benz from a private seller with dirty money, would anyone get suspicious?
Even if the buyer is a college student without a job?
I know on the title or at the DMV or something you have to report how much the car was bought for. Does this info get reviewed? Or could someone get away with buying expensive cars in cash from private dealers and get away with it?
Thanks, I'm just jw'ing
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All you have to do, is get the seller to write the bill of sale for $300 or something.
If anybody asks how you got it so cheap, just say it wasn't running.
 
Rancho Cucamonga

Rancho Cucamonga

Active Member
brimck325 said:
dont you pay blue book value on the taxes now if it was a gift?
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In most states I'm fairly certain transfer of title as a "gift" is only allowed between blood relatives. I gifted a car to my younger brother and we were able to avoid all taxes because purchase amount was zero. Between no-related private parties you definitely have to stay in the same ballpark as book value to avoid suspicions.
 
H

hair of the dog

Member
Your kind of looking at it backwards. You can buy a used car with a bill of sale for significantly less than Blue Book. The registry will likely want you to pay tax on blue book, but that's not uncommon and doesn't raise suspicion. What does raise suspicion is a young guy with a high end luxury car. No one but you and the registry sees that bill of sale. People see a twenty something stoner type in a Mercedes and don't even think "I wonder if he got that with a salvage title, the industrious young lad"; they think "dope dealer". I doesn't matter what you have on paper to indicate otherwise when suspicions are raised. Once someone with the where with all to follow up on their suspicions starts looking, looking hard, it just doesn't matter how well you think you covered your tracks. Follow the advice from the Goodfellas clip posted above. Don't do it. Buy a high quality, low profile used car for cash but don't get a Caddy and a fur coat for your 'ho. It's just a fool play.
 
BleedsGreen

BleedsGreen

Well-Known Member
hair of the dog said:
Your kind of looking at it backwards. You can buy a used car with a bill of sale for significantly less than Blue Book. The registry will likely want you to pay tax on blue book, but that's not uncommon and doesn't raise suspicion. What does raise suspicion is a young guy with a high end luxury car. No one but you and the registry sees that bill of sale. People see a twenty something stoner type in a Mercedes and don't even think "I wonder if he got that with a salvage title, the industrious young lad"; they think "dope dealer". I doesn't matter what you have on paper to indicate otherwise when suspicions are raised. Once someone with the where with all to follow up on their suspicions starts looking, looking hard, it just doesn't matter how well you think you covered your tracks. Follow the advice from the Goodfellas clip posted above. Don't do it. Buy a high quality, low profile used car for cash but don't get a Caddy and a fur coat for your 'ho. It's just a fool play.
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I always think damn I wish I had his parents money, but I do live near a college town.
 
jrainman

jrainman

Active Member
Yes there is a review of the sale by the state the car is tittled in , yes they look at retail value of said vehicle , if said value you enter as payment is way below market value they will ask for a letter from the seller on why, this is done because the state wants there money and dont liked to be jerked around with there tax money , Its all about the proper tax being paid, they could care less how the car was paid for as long as the state gets there taxes on the said value , So dont open a can of worms for yourself and say you paid $300 for a car worth 25,000 retail . just pay what you owe and everybody goes home happy.
 
nontheist

nontheist

Well-Known Member
Man you guys are thinking a little too close to home, it isn't appearance or bill of sale you have to worry about most of the time. Most states tax on blue book so it doesn't matter. What you do have to worry about is when the guy you bought it from deposits the money in "his/her" bank. Then they have you and you didn't even see it coming. It's next to impossible to launder money with tangible objects that why people that don't want to get caught don't do it. This is how people get busted and lose everything they have. You may get lucky and again you may not.
 
downhill21

downhill21

Well-Known Member
There's no tie in between DMV / Secretary of State (titling and registration for the auto) and any governmental body watching over you. The only party I'd worry about is the IRS, so maybe you don't write off your registration fee, and thus not come to their attention. There's no loan, so no reference on your credit bureau report. Dunno if you every have to fill out a Personal Financial Statement (you would if you have commercial loans) but on the PFS you list all assets and liabilities. I'd think twice ab out listing a Benz of any value with no liability (loan) reflected. Its almost certainly ok, but I would just avoid putting anything on paper other than your title and registration (and insurance).
 
vro

vro

Well-Known Member
if it was under 10k you could pul it off. anything over 10k is to much because you have to fill out a ctr
 
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