Dealership vs Private Seller?

Question

The dealer is charging me 6.5 percent tax, $75 doc fee, and $35 title fee. I'm wondering if this would be any different if I buy the same car from a private seller. Would it be cheaper?

I get why we need to pay tax for a dealership because it's more of a service, but I just don't understand why we have to pay tax for private transactions...

Answer 1

The tax is not for any 'service' from anyone, it's simply sales tax, which applies to private sales as well because the DMV has to get paid.

Answer 2

Maybe your state is different, but I've never heard of a seller charging the tax.

Normally sales tax (private or dealer transactions) is paid when you title the car at the DMV.

Answer 3

You can avoid the doc/title fees if you go with a private party, then again you will have to do all the registration yourself.

You can't avoid taxes because it is collected by the state. You either pay it upfront with the dealer when they take care of the paperwork for you, OR you pay for it when you do the paperwork yourself (if you buy it privately).

As far as dealers standing by their cars? Thats not true. Used cars are sold AS IS no matter who you buy them from.  In most states, there is no cool-off period, even for new cars.

Answer 4

It is sales tax.

You have to pay it to register the vehicle. If you buy it from a private party, you will have to pay it when you transfer the title into your name.

Answer 5

OK....

You are going to pay sales tax one way or the other... When you title your car and transfer it into your name at the DMV,  from a private seller, you will pay the sales tax then... Along with the title fee... no savings there...

Dock fee, is probably something you can have the dealer knock off the price... just be tough with them... dont settle on price... keep in mind, dealers need to move cars... they need you to get this car off of their lot, so they can get more cars in... a car that sits on their lot for 6 months does them no good....

Private sellers usually sell "AS IS" so you have no recourse if something goes wrong with your car in a week.

Dealers usually will stand behind thier cars...

I would go with the dealer, from a warrenty stand point.