Cheapest way to register vehicle in CO?

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10-15-2018, 12:36
sellersm

Cheapest way to register vehicle in CO?

Long story short: our 2002 Odyssey minivan is finally dead, tranny's toast, bunch of other high $$ items need fixing, not worth the $$ to put into it (again, it's had 3 trannys already)...

Wife's sister is willing to 'sign the title of their Ford Escape over to us' so we can 'have' it for an indefinite amount of time until we can find a suitable replacement vehicle.

QUESTION: what's the cheapest/best way to register it? Say it's a gift? Have a bill of sale showing we paid $10 for it, or less? ???????????????????????
10-15-2018, 12:46
Grant H.

Bill of sale stating purchase price of $1.

When it's time to give it back to her, same thing.
10-15-2018, 12:51
SouthPaw

In my experience, I would avoid writing trade/gift on the purchase amount. This worked a few times in the past but more recently, they have asked what the value of the trade was and/or write that in the purchase amount. I never tried the gift method but they may tax you for the entire amount on the Escape. If the plates on the van were registered to your or your wife's name, you can reuse them for a little bit of credit. I recently had to jump through some hoops on a motorcycle title that was from MO and had to talk to the DMV many times on the phone. Oddly enough, they were pretty helpful with answering my questions. It may warrant a call to them and ask them what you 'should' do but I wouldn't use the term "cheapest way" for obvious reasons.

As always, you should always be truthful in these types of scenarios because Uncle Sam deserves his cut out of everything, even if it is something that cost you nothing..
10-15-2018, 12:55
newracer

I would state it was a gift. There no taxes on a gift. I have done this many times, even across states with no problems.
10-15-2018, 12:57
68Charger

One of the hidden costs of Colorado residency.

I just registered a trailer I bought without a title... went into the DMV with only a $10 bill and my checkbook... I didn't write a check, and I still had a quarter in my pocket when I left.

ok, It was a farm plate... but I'll take it!

When I last did a xfer in Colorado, I did one as a gift... it worked then, but YMMV with greedy Dem taxoholics in charge.
10-15-2018, 12:57
Little Dutch

The DMV doesn't even look at the sale amount anymore. The computer tells them the taxable amount of the vehicle based on Make, Model, and year of manufacture.
10-15-2018, 13:01
68Charger

Quote:

Originally Posted by Little Dutch

The DMV doesn't even look at the sale amount anymore. The computer tells them the taxable amount of the vehicle based on Make, Model, and year of manufacture.

While I believe this is true for the property tax portion, they most certainly look at the sale amount for sales tax. If you bought private party and sales tax was not charged, the DMV will charge it.
This is the case in many states now... I didn't owe it on my trailer only because of an Ag tax exemption I have.
10-15-2018, 13:09
Grant H.

Quote:

Originally Posted by newracer

I would state it was a gift. There no taxes on a gift. I have done this many times, even across states with no problems.

Depends on value of the vehicle.

Gift taxes can apply to gifts of cars as well.
10-15-2018, 13:30
SouthPaw

Quote:

Originally Posted by Grant H.

Depends on value of the vehicle.

Gift taxes can apply to gifts of cars as well.

That's what I thought, no way in hell you are getting out of anything and not paying taxes.
10-15-2018, 14:00
ray1970

Quote:

Originally Posted by Grant H.

Depends on value of the vehicle.

Gift taxes can apply to gifts of cars as well.

I seem to remember there was some sort of $50 ?gift tax? or something when I was dealing with vehicles for the kids years ago. I ended up doing the $1 sale so we didn?t get dinged with the gift tax.
10-15-2018, 14:53
newracer

Quote:

Originally Posted by Grant H.

Depends on value of the vehicle.

Gift taxes can apply to gifts of cars as well.

Quote:

Originally Posted by SouthPaw

That's what I thought, no way in hell you are getting out of anything and not paying taxes.

I suppose it should be claimed on your income taxes but there is no sales tax, which is what you pay when registering.
10-15-2018, 17:20
Grant H.

Quote:

Originally Posted by newracer

I suppose it should be claimed on your income taxes but there is no sales tax, which is what you pay when registering.

Sales tax can be collected at time of registration, but on a $1 sale, is going to be very little.

Actual registration taxes and fees are also collected, and going to be paid whether it's a gift or not.
10-15-2018, 17:34
Mazin

I though a "gift" vehicle was subject to taxes on the taxable value of the vehicle, I've always put down $50 on the title and BOS.
10-15-2018, 17:58
Lurch

Wouldn't it be easier to just borrow the car and pay for her sisters plates and put the car on your insurance? I would think if she wrote a letter stating that you are borrowing her car any police officer would be fine with that if you get pulled over.
10-15-2018, 18:34
sellersm

Cheapest way to register vehicle in CO?

Quote:

Originally Posted by Lurch

Wouldn't it be easier to just borrow the car and pay for her sisters plates and put the car on your insurance? I would think if she wrote a letter stating that you are borrowing her car any police officer would be fine with that if you get pulled over.

How can we put it on our insurance if we?re not the registered party?

Sent from my iPhone using Tapatalk
10-15-2018, 18:40
kidicarus13

Quote:

Originally Posted by sellersm

How can we put it on our insurance if we?re not the registered party?

Sent from my iPhone using Tapatalk

Insurance companies don't care, they'll take your money for whatever vehicle you want to pay them for. Trust me.
10-15-2018, 18:59
Mazin

Quote:

Originally Posted by kidicarus13

Insurance companies don't care, they'll take your money for whatever vehicle you want to pay them for. Trust me.

^this. When ever I have worked out a payment plan on a private party sale, even if the vehicle remains at the seller's property I have always insured it.
10-15-2018, 20:04
Irving

You have to have an insurable interest to insure it. Could probably buy the policy though.
10-15-2018, 22:21
Delfuego

Quote:

Originally Posted by Grant H.

Bill of sale stating purchase price of $1

This used to work, but not no more. They go of "taxable value" now.

Quote:

Originally Posted by 68Charger

When I last did a xfer in Colorado, I did one as a gift... it worked then, but YMMV with greedy Dem taxoholics in charge.

Is was actually Governor Owen's that changed the law on vehicle registration...
10-16-2018, 06:39
68Charger

Quote:

Originally Posted by Delfuego

This used to work, but not no more. They go of "taxable value" now.

Is was actually Governor Owen's that changed the law on vehicle registration...

I thought Ritter was the one that really f'd it up, using "fees" to get around TABOR.

Regardless my point still stands, it'll only get worse with the tax-and-spend party in charge.

Not that the GOP can't screw you over, too...
10-16-2018, 06:56
Irving

I also thought it was Ritter that tried to go around Tabor.
10-16-2018, 08:54
Martinjmpr

Quote:

Originally Posted by Delfuego

This used to work, but not no more. They go of "taxable value" now.

For property tax purposes, yes. But for local sales tax purposes they use the price paid.

I've heard that "some people" will put a $500 price on the title or BOS so as to pay less sales tax.

I, for one, would never dream of doing such a thing, since I am an honest citizen and righteously pay my taxes with a smile.

But I've heard others do it and I've heard it works.

Allegedly.

Not that I would know....
10-16-2018, 08:59
Martinjmpr

Quote:

Originally Posted by Lurch

Wouldn't it be easier to just borrow the car and pay for her sisters plates and put the car on your insurance? I would think if she wrote a letter stating that you are borrowing her car any police officer would be fine with that if you get pulled over.

Quote:

Originally Posted by sellersm

How can we put it on our insurance if we?re not the registered party?

Sent from my iPhone using Tapatalk

Have you ever actually had an insurance company ask you who a vehicle is registered to when you were buying insurance? I never have. The only thing they ask is "what is the VIN?" and "Is there a lien on the vehicle?" If there's no lien they don't care who it's registered to. Makes no difference.

So, if you know you're going to be giving the vehicle back, don't bother changing the registration at all. There's no law against borrowing someone else's car, even for an extended period of time. make sure you have up to date registration, proof of insurance and driver's license and you're good to go.
10-16-2018, 09:33
ChickNorris

^ what he said. : )
10-16-2018, 12:18
Delfuego

Quote:

Originally Posted by 68Charger

Regardless my point still stands, it'll only get worse with the tax-and-spend party in charge.

Politicians with taxes are like crackheads with crack...

Due to TABOR, they can't get tax increases passed, so Colorado is a "Fee Based Economy". It's not a tax, it's a fee ;)

Pretty sure they just look up the value on a spreadsheet now. I do work for a couple car dealerships and they said that ship sailed.
10-16-2018, 15:51
sellersm

I called my insurance and they said, "sure, no problem, we'll insure it"! So, for now, situation resolved, I think...

Thanks, didn't think of this option at first, glad some of you suggested it!
10-17-2018, 08:09
SAnd

Did you ask your insurance agent if the owner will be covered? Does your liability coverage extend to the owner of the car? The owner could still be sued if you have an accident driving a car that they own.