Selling my less then a year old 2020 Mercedes C43 AMG to a private party here in Cali. Mercedes Financial holds the title. When I go to pay the buyout price am I subject to additional taxes from DMV or is that on the new owner? Also he wants to get the car inspected on his dime, but is it something you would do?
Is this a leased or a financed vehicle? Makes a difference regarding taxes.
Yes, I’d let him get it inspected.
leased…how would i go about doing this…he gives me the money, buy out the car, and then give him the title once i receive it?
If it’s a private party, you will need to purchase the vehicle from Mercedes. Tax is due when you buy it out. There are some threads here on a specific process in CA that you can follow to be exempt from this tax if you resell it within 10 days. He would then pay tax when he registers it in his name.
But yes, as far as the money goes, what you’re describing is correct.
should i draw a contract up with him since he will take possession of the car without the title temporarily, but me having the money in hand to pay it off?
Why would he pay you first? I wouldn’t.
Yes, assuming he’s OK with paying up front, a contract would be in everyone’s best interest.
Best option would be for you to buy it out yourself and separate the two transactions if you have the money to do so.
Thanks man appreciate the help.
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