Stamp Duty

[vspecR]

Hi all,

Just wondering if people generally write the actual amount on the transfer papers when they buy their R35s. From the department of transfer website, the stamp duty for a 110k is over 7k..which is rediculous considering how much we get taxed for everything else as well. I know only it's part of the cost of buying such an expensive car but how can you reduce this cost. Do you just write a lower price on the transfer papers? if so, and the seller agrees to write it, how low should i put it on the transfer paper. Has anyone ever be caught out doing this?

Cheers

[LSX-438]

I think the rule may be based on purchase price OR market value, whichever is higher.

http://www.rta.nsw.gov.au/registration/feesconcessions/stampduty.html

They probably have a redbook style database of values.

I wouldn't bother trying to lower the value too much beyond the approx. current market value, whatever that may be.

[Wardski]

Go market value, never actual sale price.

I sold a Mazda MPS a few years back for $31k, wrote down $22k and the new owner got a way with it too easy. Probably helped that QLD transport had no idea what an MPS was at the time - just another Mazda 3 lol

[vspecR]

Yeah over in WA it's 6.5% for anything over 50k. They have the market value and the purchase value on the transfer paper and the stamp duty is based on the market value you write.

[Wardski]

I don't understand why there is stamp duty on cars after the first sale. They get a MASSIVE cut when its new, then proceed to take more off the top over the life of the vehicle - essentially double dipping the honey pot.

It's therefore in our best interest to record the lowest value possible, because there is no way it would cost $7k to do the change over paperwork on a 2nd hand GT-R.. What an effing rort..

[vspecR]

I wish there is some way around this, I guess I can only ask the seller for a favour when writing the price. How low do you think i can write the market value without it being questioned? also, for a 110k car we have to pay 7.1k in stamp duty in WA where as in NSW you guys pay 4.6k..why is there such a big difference

http://www.transport.wa.gov.au/licensing/1382.asp

Edited September 17, 2012 by vspecR

[Longz]

Another interesting question is

If a car is sold for 150k value , written down as 90k to avoid duty's

insure the car for 160k agreed value ,

Car gets in accident written off would insurance void it ?

[ossie cossie]

Another interesting question is

If a car is sold for 150k value , written down as 90k to avoid duty's

insure the car for 160k agreed value ,

Car gets in accident written off would insurance void it ?

In short NO.

Agreed value is as it says agreed value.

However, the insurance company will try other ways to get out of paying it.

[Wardski]

Another interesting question is

If a car is sold for 150k value , written down as 90k to avoid duty's

insure the car for 160k agreed value ,

Car gets in accident written off would insurance void it ?

At no time will the insurance co ask for your change of ownership docs. You pay for what ever agreed value you want when you insure your toys, so write down the lowest value for the GTR as you can - $90k is very reasonable for the change of ownership forms IMO.

Edited September 17, 2012 by Wardski