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?

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

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.

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

Everybody does it

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

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.

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.