The solution is simple but takes a few steps. First, pay off the car. Secondly, when the title comes in, have your friend add your name to the title. This is the only way around the sales tax issue. Otherwise, the DMV selects the approximate value of the car from a book and you pay tax on that amount.Is a transfer of a car title outside of family possible w/o paying sales taxes? How is fair value determined?
Thanks for yoru answer. Can I remove my friend from the title after he adds me to the title.
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Is a transfer of a car title outside of family possible w/o paying sales taxes? How is fair value determined?You can't put the title into your name if your friend is on the loan. You would have to get your own loan.
