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Question about trading cars

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Old Dec 10, 2013 | 10:37 AM
  #1  
yals's Avatar
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From: Washington
Question about trading cars

Hey everyone I have a question for you guys.
I bought a 2013 Focus ST in June and I love it to death but I really want to trade for an Evo. Question is, if I trade my car straight across am I going to have to pay sales tax again? Having just paid 2500 in sales tax 6 months ago I really would rather not have to do it again. Any info would be much appreciated.

-Derrick
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Old Dec 10, 2013 | 10:49 AM
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From: Washington
Yes, unless the car is gifted to you

In WA you cannot have two free title transfers in a row. Meaning if the car was brought from another state and registered here by the owner who moved here that would be one free transfer. If they then tried to gift it to a family member, that would be taxed

Easiest way is to try and get whoever you're trading to (private party or dealership) to cut at least part of the tax off the price
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Old Dec 10, 2013 | 11:01 AM
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So im guessing if two people gifted expensive cars to each other it would raise a red flag?
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Old Dec 10, 2013 | 12:48 PM
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Gifting a Vehicle
If you're giving a vehicle as a gift, whether to a family member or friend, you need to:

Have the giver sign off in the seller’s area of the title, noting mileage if the car’s 10 years old or newer.
Have the giver provide verification that the vehicle's sales tax has been paid if you have owned the car less than 7 years, so you won’t have to pay tax again.
Have the giver provide a "Letter of Gift" stating his intent along with the vehicle's description, your name, your signature, and the date
Take all of this evidence to a vehicle licensing office and complete a Vehicle Certificate of Ownership Application.
If you can provide proof that the person who gifted you the vehicle paid sales or use tax, no use tax is due. If, however, the person who gave you the vehicle owned it for 7 years or more and resides in a state with sales tax, it will be assumed sales tax was paid, freeing you from providing proof.
Pay a title transfer fee of $25.50, plus any other fees that might be due at registration. Contact the office to find out the exact cost and whether you need more documentation.
The vehicle can only be given as a gift every other time it passes hands.
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Old Dec 10, 2013 | 02:32 PM
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yals's Avatar
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right on, thank you very much
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