Avoiding Stamp Duty?...

[Owens]

I recently bought my GTR from vic, which means I have to get it registered from scratch in NSW. I've already spent close to $1000 on my car after I purchased it so it would pass blueslip, and thats before rego. So just trying to save where ever possible.

Before I goto the RTA to get registration, just wondering what peoples experiences have been like with putting down less value than what you actually paid for your car?

For me my car cost $22,500. Seller was kind enough to put down $17,000 as how much I paid for it.

According the RTA website I will be charged 3% stamp duty because its under $45,000. So it's eqautes to about $510 I have to pay -_-.

Whats your experience? Did RTA get suspicious? And how little did you get away with.

Something tells me I could put down a whole lot less? how can they really tell and whats the worst that could happen?

[Cassbo]

I recently bought my GTR from vic, which means I have to get it registered from scratch in NSW. I've already spent close to $1000 on my car after I purchased it so it would pass blueslip, and thats before rego. So just trying to save where ever possible.

Before I goto the RTA to get registration, just wondering what peoples experiences have been like with putting down less value than what you actually paid for your car?

For me my car cost $22,500. Seller was kind enough to put down $17,000 as how much I paid for it.

According the RTA website I will be charged 3% stamp duty because its under $45,000. So it's eqautes to about $510 I have to pay -_-.

Whats your experience? Did RTA get suspicious? And how little did you get away with.

Something tells me I could put down a whole lot less? how can they really tell and whats the worst that could happen?

3% stamp duty is standard. You just get hit with an extra tax if the value of the car is over $45,000 (luxury car tax or something)

[zebra]

If the car's market value is more than what you paid for it than you have to pay the stamp duty on market value.

This is to stop the dodgy shit you are trying to do.

[quarkgun]

you might call it 'dodgy', but why the hell does the state government get to dip its hands into a car transfer? i reckon that's pretty dodgy too

[zebra]

Yeah it is....but how else are they going to pay for our wonderful roads.....lol

[evil_weevil]

what wonderful roads?

lol

[zebra]

Oh...you havent seen the road leading upto parliament house then....lol

[Shell]

Yeah they will look up market value if you put *too* low of an amount.... so make it believable

it just depends if you get someone who knows their stuff and will question it

[4teecal]

Something tells me I could put down a whole lot less? how can they really tell and whats the worst that could happen?

Breaking the law 101.

Dont leave evidence..................of wait you have already left it all over the internet

[MBS206]

I've bought cars at some steal prices and never had an issue with them not using it as the value.

[GTR-N1]

Danger:- Using a deflated value to avoid stamp duty is commonplace; but I don't do it. It's not the RTA that catches up with you. Moreover, it's the insurance company. Should your car be stolen under unusual circumstances, and should your car be insured for an 'Inflated Agreed Value', the company might send out an investigator to do an interview. During that interview he/she might ask you for evidence from the RTA of what you paid for the car. Then you'd be sweating over the discrepancy!!!!!!!

[Shell]

Hrmmm I would think that if your insurer had any doubts about the value of the car they would investigate before they offered you a contract of insurance...

[SECURITY]

you dont buy a car without a written bill of sale. the bill of sale will cover you for any investigation regarding your purchase. as long as the bill of sale says $x whatever happens afterwards is irrelevant.

insurance rarely (if ever) asks you for the purchase price of a vehicle for the fact that you could have bought it from a friend or family member for a discounted rate. also - if the car is disposed for whatever reason your insurance assures you that you will at least get to replace it with the same model of car.

for example, if you bought a $80,000 mercedes for $50,000 for whatever reason (light damage which you repair, friend wanted to piss of ex husband/wife etc) you become accustomed to the style. the whole point of insurance is to INSURE the quality/make of vehicle you have become accustomed to will still be available to you if the vehicle is damaged or stolen.

ever hear about when a rich person marries a waiter or waitress (i think there was a story in the news a couple of weeks back) and they break up? the person who gets accustomed to the style is rewarded a shitload of money to sustain that lifestyle. its the same principal with insurance.

just make sure your bill of sale is in order.

[Owens]

Thanks security. I have the receipt that the previous owner and me filled out. He put down $17,000. I'll present that one to the RTA, so then I should get another receipt with the real amount I paid for insurance purposes?

Yeah it is....but how else are they going to pay for our wonderful roads.....lol

Lol.. Whats rego we pay every year for? Really, stamp duty is just another reason for the RTA to ass ram you anyway they see fit.

As was mentioned before, it's a commonplace to put down less that what they paid, so was just after peoples experiences. I'm sure I'm not the only black sheep here.

[fatz]

i find if i dont buy anything i dont have to pay stamp duty

lol

[GTR-N1]

Thanks security. I have the receipt that the previous owner and me filled out. He put down $17,000. I'll present that one to the RTA, so then I should get another receipt with the real amount I paid for insurance purposes?

SECURITY brought up a very good point about 'Bill Of Sale' to substantiate a figure you take to the Insurance Company.

I also mentioned that there was a danger of having 2x figures, of which one is taken to the RTA.

Our Story:- Our eldest son used to own an XR6. On a day that I was driving it, and it was parked in Penrith, it was stolen and later on found burnt out at Dunheved. I lost $4K of medicines in boot as well. Insurance was paid on the car (at least) - no problem.

Moving on, our family had to go from our home in a cul de sac in the lower blue mtns to the city to celebrate a birthday. I didn't park the same son's car as I should have, in the garage. The anniversary VP Maloo was stolen by the time we came home. Insurance was paid - no problem.

Moving on, the same son went to the movies in Penrith one night and came out to find his Suzuki Swift GTi stolen. Then the insurance company sent out an investigator. He quizzed me; he quizzed my wife; he quizzed my son; he asked for the movie tickets; he rang the cinema operator to see when the film finished; he came back and asked my son why he left before the film was meant to end; he couldn't get it through his brain that some people leave before the credits scroll up the screen; he asked for proof from the RTA as to what was paid for the GTi; he asked for the bill of sale. Everything corresponded, so we got paid out by AAMI after 6 weeks.

Danger:- Some savvy businessmen (and others), want things their way any way they can - but they leave a 'paper trail'.

They deflate the purchase price of the car to reduce stamp duty with the RTA.

They get a correct figure for the price paid on the car as 'Bill of Sale'. Sometimes it's inflated for tax deductability.

They give an inflated figure to the insurance company based on non-standard features (over and above the purchase price).

Now the dude has 3x different figures in his 'paper trail'. No wonder he can get pinged!

But if he's not in an 'at fault' accident, and his car hasn't been stolen; odds are, he'll get away with it.

my 2c about Risk

[SECURITY]

Terry, as on many other occasions when they send an investigator out and they choose NOT to pay - you can take them to court. every single case i have heard of that has gone to court has worked out for the insuree. it doesnt matter what time you left the movie, or if you went to a movie at all. at the end of they day, even if the car was stolen and you were sitting on your porch having a coffee watching it get stolen, what would they expect you to do as a 'reasonable man' as the law always refers to?

you would let the guy take the car then call the police and then your insurer. simple.

everything else they do are merely scare tactics to make you admit something that will breach the contract (as in, lie about facts given in your claim) OR have you give up chasing your insurance money after they say that they will not pay you out.

words i live by - always stick to your story

[GTR-N1]

^^^ understood.

3x ppl sticking to 1x story is pretty simple too - when it's the truth.

when it ain't the truth, well, 3x ppl stuff up...

[oweban]

^^^ understood.

3x ppl sticking to 1x story is pretty simple too - when it's the truth.

when it ain't the truth, well, 3x ppl stuff up...

The worst part I think in your story though Terry, would be if either you or your wife couldn't remember what time he got home, had gone to bed beforehand, etc. Then it reduces the amount of people who are able to have the same facts, and they'd try and be picky about that.

It's just lucky that some companies have people who understand things do happen; Shannons thankfully were very understanding when I had an accident in the wet (still don't know how it happened, the physics don't add up), and it was repaired.

Offtopic though, sorry

[ido09s]

insurance rarely (if ever) asks you for the purchase price of a vehicle

I recently purchased an RX3 and Shannons asked me what the purchase price was and they were happy to insure the vehicle for the purchase price. If i wanted it insured for more it was going to have to be inspected and the price agreeb upon

I would be very careful doing it today. I have heard stories of insurers investigating what was noted at the RTA and if there is a difference the insurance has been wiped