Hi, not sure if this is the right place to post this question buuuut...

I bought the a 99 F4 for $2000, the guy signed the title and everything over but left the "price paid" section blank for me to fill in... now is there anything that I can "get in trouble for" if say I were to fill in that the bike cost $100, or even like $5 or something, so that i didnt have to pay all the taxes on it? or if i dont keep it "reasonable" will they somehow know that im fibbing and could I somehow get in trouble? I mean, i figured if i put like $100 I could just say a family friend sold it to me or something... right? Will it come back to bite me inthe *** somehow, or would that be the smart thing to do? thanks guys, I plan on insuring it and going to the secretary of state (DMV) tomorrow so I can officially get her on the road! Btw I live in Michigan

this is my first bike, im excited!

 

Well deffinatly do not put 5 bucks and I probably wouldnt do 100. If I were you I would put 500 or so. Either way if you wrote 2000 the title will be the same cost regardless if the price is 500 or 30000. The taxes would be different but I am in WI and I paid 2800 for mine and my tax and title was 247.50. If I can afford 2800 I can afford another 247.50

 

yeah, Don't know what state your in, but..In Connecticut, they go by which ever is higher the amout paid OR book value. If you say you bought it from a sibling (sister is easier due to last name difference) you can avoid those taxes. But thats in Ct.

 

Lot of states have cracked down on that old loophole. If they feel it was undervalued, they'll assess a different tax. If you say it was a gift, they'll assess a gift tax. Inheritance... inheritance tax. Just don't go stupid with the amount and you should be cool.

Say $1 and expect a "Do you think I'm stupid?" Look.

 

This came up earlier with someone else I believe and correct me if I'm wrong but if you put $100 and total the bike, the insurance company will give you a check based on that $100. So you may only get $65 for example.

 

That is incorrect.

Raphius - my first hand experience in VA is that you can put down whatever you want, but the Bill of Sale has to corroborate the amount, otherwise they will assess the tax on whatever the NADA is. Also they have a minimum charge of 3.5% of $1000 so putting anything less is pointless.

You asked if you can get in any trouble? Techincally it is tax evasion and certainly punishable by law. I believe there is an acknowledgement on many of the forms stating that you are perjuring yourself for any non-truths. Are you going to actually get in any trouble - probably not, COULD you - yes. If you paid cash, and the seller wouldn't rat you out, I don't think you would ever actually get in trouble, but is it worth the risk?

 

Just put in a reasonable amount, taxes are 6% of the price, so you really wont save much.
Example - tax on $2000 is $120, and if you mention the price as $1500 then the tax you pay is $90, so you end up saving $30 but risk losing $500 if you total the bike.

BTW - I am in Michigan and when I went to title/register my bike, the lady actually checked the prices on her system to make sure I wasnt trying to cheat.

 

Again, Insurance doesn't pay based on what you bought the vehicle for or what you told the DMV you paid for it. Their focus is on Market Value less whatever they can screw you out of.....

 

thanks guys, got it all taken care of Shes on the road and ready!