Anybody know any "state certified auto appraisers"

[AI#97]

My dad just bought a 97 Cobra convertible with a blown motor for a song. car has 135k miles on it but is in overall OK shape. We are going to work on it over the winter so they have a 3rd car for the weekends.

Well, we bought the car for $2500 and have a bill of sale from the previous owner for that amount. He goes to register it today and the fucking state says the car is worth $9400 and wants sales tax on 80% of that value. We have the option of getting it appraised by a "certified appraiser" but typically you have to take the car to those guys and they don't make house calls...would have to pull a Fred Flintstone to get it there with no motor in it! :lol:

Anyone had any experience with something like this and have an appraiser hookup? I was considering going to carmax but they would probably laugh and ask me to leave.

Thanks!

[donovan]

Since its not a classic car, and realisticly the value of the car with a repaired engine is $9400... I would say your screwed... they are looking at it as your working the system.

I bought a Tub of a 93 coupe last year, it was a Factory Five stripped car for a build up... a Tub is all that was left... not engine, not tranny, no wiring, and they even sold off all the interior... heck it was not even a roller, no suspension at all...

I picked it up for $250... I had to pay taxes on $1400 becuase of the 80% think you are talking about... Heck I just wanted the title in my name, the car will never be back on the street and never registered again... mine was only about $80... paying taxes on $9400... you might want to look into it a little further... but the 10 minute I spend on it I found nothing and decided to just pay the money... your looking at closer to $500-$600 I think... OUCH!

DD

[jeffburch]

Would decraring it a gift be any better.
I dunno.
jb

[jeffburch]

I didn't reg my cmc car.
It's still in the orig owners name (B. Simpson)
jb

[GlennCMC70]

w/ the new laws, a gift would still have the same issue - tax based on $9400. does the $9400 value had any vehicle condition status's attached to it? sort of like Kelly Blue Book condition ratings?

[GlennCMC70]

it also a little F'ed that the State ditermins the value of some thing you pay them tax on. i think the market should determin value and the state should be happy they got paid.
if they are unhappy w/ the "i'll sell it to you for a dollar, wink, wink" crap, then fix that system.

[Rob Liebbe]

The state recently changed the law to tax on "book value" instead of "sale price". Really puts a bind on buying junkers to fix up. I know that with boats and trailers there is a gift exculsion and you pay $10. Worth checking into for cars. the previous owner may have to fill out the tranfer form that's available on the Texas dot website.

[AI#97]

The state recently changed the law to tax on "book value" instead of "sale price". Really puts a bind on buying junkers to fix up. I know that with boats and trailers there is a gift exculsion and you pay $10. Worth checking into for cars. the previous owner may have to fill out the tranfer form that's available on the Texas dot website.

Well, there is a form that you can have the appraiser fill out for a fee and his determination of "market value" of the vehicle is what they would go on. I am thinking of going to one of these shady car lots and offer him $50 to sign the form and put a $2500 value on it given it's current condition because that is what you would pay at a dealer.

And yes...the new state law suxx arse! I just can't believe used car prices in general anyway. There is no way a 10 year old car with 135k miles on it is worth $9400. A lambo or ferrari maybe, but a Rustang?? Sheesh! You would think this was barrett jackson or something?!!! :lol:

If this requires more than a couple more hours of work, I think he is just going to pay the fee and be done with it but the principal of the thing just bites....

[GlennCMC70]

find similar cars in an auto trader and use as a comparison to what you've been told was the value of your car.

[y5e06]

ah, that sucks. However when I was in last time transfering a title I talked to the clerk about transfering titles when the car is not to be used on the road, its a different title catagory. What they said was if you transfer the title but don't register it for road use you don't have to pay the SPVx80% amount, which would work for your tub. But if you wanted to later register the car then you'd have to pay the fee to transfer to a different type of title.
that said, this info is not described on the SPV description
http://www.window.state.tx.us/taxinfo/taxpubs/tx96_1219.pdf

When I bough the 'bird I transfered the title as non road use, so I got out of paying some of the fees and also didnt' have to provide proof of insurance. Of course this was well before the law change. The total fees were something like $50.




Since its not a classic car, and realisticly the value of the car with a repaired engine is $9400... I would say your screwed... they are looking at it as your working the system.

I bought a Tub of a 93 coupe last year, it was a Factory Five stripped car for a build up... a Tub is all that was left... not engine, not tranny, no wiring, and they even sold off all the interior... heck it was not even a roller, no suspension at all...

I picked it up for $250... I had to pay taxes on $1400 becuase of the 80% think you are talking about... Heck I just wanted the title in my name, the car will never be back on the street and never registered again... mine was only about $80... paying taxes on $9400... you might want to look into it a little further... but the 10 minute I spend on it I found nothing and decided to just pay the money... your looking at closer to $500-$600 I think... OUCH!

DD

[donovan]

Ah... yes, that is what I did the second time... forgot about that... 8)

DD

[Fbody383]

It's not even a Kelly Blue Book or Edmunds value; I think they call it Black Book. If it's not going to be on the road and you have the signed title, just roll with it. FWIW I'm in the same boat on the 94 Camaro I bought, they wanted the 6.25% sales tax on a book of $3200 or so. I showed them a $500 receipt and it all fell on deaf ears.

The state certified appraisal will be about $250-$325 bucks based on my research. You could send a public information request to DOT asking for the Black Book on a car in your condition. PITA to do but makes the state defend the position. Maybe we should take up a collection and get a fellow racer certified; kinda like having our own notary?

While you're at it, email your state senator with the story and pictures of the car. It's bad enough having to sales tax on a used car again and again but to be taxed at an arbitrary level on an arms length transaction is crap.

Good luck.

[Nick]

Where does this "Black Book" price come from? How is the state determining a cars value?

[BryanL]

Black book I believe is what dealers or auctions use to price cars. It is generally lower than Blue Book.
The state did this knowing that some people who paid less will end up paying more in tax when they title it but think it will be better for them in the longrun. It appears that they are tired of people paying 10k for a car and going in to title it and claiming they only paid 2,500. I don't know anyone that would do that.
Anyway they just wanted it to become more standardized I guess. Although I can tell you it can work out in your favor as well. My dad titled a vehicle and they priced it about 13k less than what he paid for it.
So go title that rustang to make up for what my dad didn't have to pay.

[Fbody383]

Black book I believe is what dealers or auctions use to price cars. It is generally lower than Blue Book.
The state did this knowing that some people who paid less will end up paying more in tax when they title it but think it will be better for them in the longrun. It appears that they are tired of people paying 10k for a car and going in to title it and claiming they only paid 2,500. I don't know anyone that would do that.
That and the opposite - donating non-running vehicles to charity and claiming the good condition value for tax purposes. The IRS fixed that so that you can only deduct what the vehicle actually brings when sold.

The biggest issue of the "book" pricing is it doesn't take the actual vehicle condition into account. So when you or I buy a non-running car for "fair market value," i.e., nobody else wants it and the seller just wants some money, you have to get it appraised. It would've cost me more for the appraisal than to pay the sales tax! Nothing lost for a race car, I just didn't switch the title.

If you sell a car in Texas, there is a form you can send to the state with $5 or so saying that you sold the car and want the title out of your name even if it's not registered by the buyer.

Just more proof of government in action...

[AI#97]

appraisals are set at a minimum of $100 and a max of $350. Any licensed auto dealer, trailer dealer, motorcycle dealer and insurance adjuster can appraise the car. The problem is that most I have spoken to are going to set the ACTUAL value very similar to what the state has done.....primarily because they don't want the state coming back to them and harrassing them for giving a bogus low appraisal which could cost them their license...

At this point, I think he is just going to pay the friggin' tax because it's just too much hassle...and the state probably counts on that. :evil:

[y5e06]

You pay insurance, right?
Why don't you just call your agent and see if they'll send out an adjuster. Some companies will be happy to oblige to keep good customers.


Dealer fees for appraisals are set by law
and Comptroller rule. For most vehicles,
a dealer can charge from $100 to no
more than $300 for a certified appraisal.
A dealer’s certified appraisal of a motorcycle
can cost from $40 to $300, and a
dealer appraisal of a house trailer, travel
trailer or a motor home can cost from
$100 to $500.
The law allows licensed insurance adjusters
to determine the fees they charge.

[AI#97]

You pay insurance, right?
Why don't you just call your agent and see if they'll send out an adjuster. Some companies will be happy to oblige to keep good customers.


Dealer fees for appraisals are set by law
and Comptroller rule. For most vehicles,
a dealer can charge from $100 to no
more than $300 for a certified appraisal.
A dealer’s certified appraisal of a motorcycle
can cost from $40 to $300, and a
dealer appraisal of a house trailer, travel
trailer or a motor home can cost from
$100 to $500.
The law allows licensed insurance adjusters
to determine the fees they charge.

That's a double edged sword. Appraise too low and you limit yourself to a future claim....appraise too high and you pay higher rates...