Registration
 

So when you buy a used car, you usually put down something low as the purchase price to pay less tax. Then you get a letter in the mail and you have the person you bought it from sign it saying that they sold it for that much.

How does it work when you buy a newer used car from a dealer? I'll be stuck having to pay tax on a $10,000 purchase price, or what?

Thanks

you're stuck paying tax on whatever msrp is on new cars, and asking price (i think) on used cars from the dealer

When you buy a $10k car from a dealership, you pay the dealership for tax, tags, registration, and whatever motor vehicles fees (usually around $100-$200) they want to charge you. So yes, you would be "stuck" paying the $700 tax (if you buy it in Jersey) on a $10k car.

If you're paying cash for the car you'd pay that amount then at the dealership, if you're taking out a loan for the car then they'll add that amount into your payments.

Thanks Jess :)