My wife and I are buying a used 2001 Prius in California. Our dealer wants to charge us tax, title and license fees (Almost $1,000 total!). I feel like I'm being scammed with all these fees. Is it customary to be charged full tax by a dealer on a used vehicle in California? Thanks PC!
Even if you buy a used car from a private party you have to pay tax, so that part isn't a scam. If the car is already licensed in CA you shouldn't have to pay anything for that. Same for title, I can't remember what the transfer fees are at the DMV, but it's not much. IMO that should be thrown into the deal for free.
Yes, you must pay sales tax on most used vehicle purchases. Suppose you buy from a private party. When you go to DMV to register your vehicle, you will have to pay a "use tax" which is the equivalent of the sales tax that a dealer would charge. The only legal way to avoid paying sales tax is to purchase a vehicle from a relative, or if you are a non-resident moving into the state, then you can move your vehicles into the state. The license fee is based upon DMV formulas and is non-negotiable. At minimum you have to pay a transfer fee. If the license is close to expiration you will have to pay for the renewal upfront. If you are being charged a documentation fee, that is a dealer charge and potentially is negotiable.
