Previous Owner Wants To Say Car Is Less Than I Paid

[nickmanchester2]

The previous owner of the Honda Jazz I bought 2 days ago wants to tell the transfer department that I paid 300,000b rather than 396,500 so she can pay less tax.

We are going together on Friday to the transport dept, I have the blue book and have paid the remaining finance off and the finance company passed me the blue book (I went to the finance office on Monday) - I have the car, spare key and all other documents).

I do not agree with it, I think it might effect the resale value of my car and maybe insurance if it gets stolen or flooded - as well as tax avoidance and lying about the price - any thoughts on this please?

[katabeachbum]

doesnt matter. but usually the buyer pays transfer tax

If she doesnt make the transfer, you are stuck in court for 5-7 years to get ownership, and to avoid that I would follow her request.

Insurance is according to you Insurance cover, not transfer value at DLT

[H2oDunc]

I can't see how her telling the Transport department the car was less is going to effect your insurance or resale value ? Just let her get on with it. If you are that bothered get her to sign a receipt for the full amount you have paid.

[nickmanchester2]

ok, i will just go along with it then - thanks.

[MikeyIdea]

Everybody does it

OP, you do not have to worry at all about this, perfectly OK

[soundman]

Sounds like the problem here may be VAT tax. The car may have been owned by a business rather than an individual & as such the business would have to pay 7% of the difference between the remainder of the payments owed and the sale value of the car.

Just guessing in this case 7% x 96,500B = 6755B.

[soundman]

Everybody does it

OP, you do not have to worry at all about this, perfectly OK

Well, the tax auditor may see it differently, if as I am guessing, the motive is to avoid paying some VAT tax....

However, that is not the purchaser's problem, only the seller's.