need help regarding a used car

[mom2hunangirls]

We need a car, but don't have enough saved yet to buy a good, used one.

 

A friend's daughter hit a pole (small, parking lot type) in her 2001 Honda Accord. The car has been theirs for at least 10 years and i have no doubt that it is mechanically sound prior to this.

 

The pole hit right behind the wheel on driver's side and scraped down the side. It does scrape the front door when you open it, but does not seem to hit the wheel at all. It took off the driver's side mirror (hanging by the wires now). The windows still work fine.

 

They don't want to deal with getting it fixed so they went and bought a new car for her already. So now they have offered to give the car to us. As is, obviously.

 

I don't care at all about how it looks. But I'm not experienced with how to think this through.

 

If they give it, do I have to pay taxes on it? (value with damage is nothing)

 

In terms of my insurance, do I care that it is damaged?

 

How should I decide if the damage is too much? Or what questions should i be asking myself?

 

I can't think of anyone IRL that knows this stuff....but surely there is some smart shopper here.

 

[PrincessMommy]

I would have a trusted mechanic look at it to make sure the damage is superficial.  You might even ask if they know of someone who is willing to hammer out the worst of the damage.  That would be much cheaper than a full-on repair.

 

Good luck.

 

 

Edited January 9, 2018 by PrincessMommy

[Ravin]

It's common for tax purposes to sign over the title for $1 or some such. That's what the person who gave me a car once did (and what I did when I later gave it to someone else). You will then have to go pay tax and title transfer fees, and register it in your name. This is not a professional legal opinion, just my personal experience.

 

I would take it to a general car repair place and to a body shop to get estimates of the cost to repair it before you do. 

 

For your insurance, tell them what they ask you as far as whether the car is driveable.

 

For inspection purposes, the driver's side mirror may be a non-avoidable repair.

 

Worst case scenario, if it's not worth the repairs to you, you can probably sell it to a tow-a-wreck place for a little cash.

[Annie G]

I would get an estimate to replace the mirror since you might use that when driving.   I'd register it and pay for liability insurance only on it, and use it until you can save enough for the car you really want. Then pass it on to someone else who needs it. 

 

Do you have a community college or other auto body program in your area? When dd totaled her truck we let the auto body program fix it. They need cars to practice on and they only charged us for parts, no labor. And they happily found used parts for some things, saving us even more. 

 

ETA: Not sure what kind of tax you're referring to. Since it's a gift I can't imagine any tax being due.

Edited January 9, 2018 by Annie G

[Scarlett]

I would get an estimate to replace the mirror since you might use that when driving.   I'd register it and pay for liability insurance only on it, and use it until you can save enough for the car you really want. Then pass it on to someone else who needs it. 

 

Do you have a community college or other auto body program in your area? When dd totaled her truck we let the auto body program fix it. They need cars to practice on and they only charged us for parts, no labor. And they happily found used parts for some things, saving us even more. 

 

ETA: Not sure what kind of tax you're referring to. Since it's a gift I can't imagine any tax being due.

 

 

In my state you have to pay sales tax on the value.  For instance, my parents gave me a car valued at about $3500.  It cost me $140 to tag it (tags and sales tax)

[Scarlett]

We need a car, but don't have enough saved yet to buy a good, used one.

 

A friend's daughter hit a pole (small, parking lot type) in her 2001 Honda Accord. The car has been theirs for at least 10 years and i have no doubt that it is mechanically sound prior to this.

 

The pole hit right behind the wheel on driver's side and scraped down the side. It does scrape the front door when you open it, but does not seem to hit the wheel at all. It took off the driver's side mirror (hanging by the wires now). The windows still work fine.

 

They don't want to deal with getting it fixed so they went and bought a new car for her already. So now they have offered to give the car to us. As is, obviously.

 

I don't care at all about how it looks. But I'm not experienced with how to think this through.

 

If they give it, do I have to pay taxes on it? (value with damage is nothing)

 

In terms of my insurance, do I care that it is damaged?

 

How should I decide if the damage is too much? Or what questions should i be asking myself?

 

I can't think of anyone IRL that knows this stuff....but surely there is some smart shopper here.

 

 

As far as insuring it, I would only put the legal required liability on it.  In which case your insurance company doesn't care about the existing damage on it.  

[Annie G]

In my state you have to pay sales tax on the value.  For instance, my parents gave me a car valued at about $3500.  It cost me $140 to tag it (tags and sales tax)

 

Yeah, our state does that, too. I always forget since it seems so...wrong. (If it's truly a gift, not someone pocketing the cash and claiming they only sold the car for a dollar or something)

[Ottakee]

In my state you have to pay sales tax on the value. For instance, my parents gave me a car valued at about $3500. It cost me $140 to tag it (tags and sales tax)

But in this case the value might only be $200-300 due to age and damage. If the car is still to drive and reliable, even the higher tax fee is cheaper than one months of car payment.

[Scarlett]

But in this case the value might only be $200-300 due to age and damage. If the car is still to drive and reliable, even the higher tax fee is cheaper than one months of car payment.

 

 

Exactly. I was not arguing that she shouldn't take the car.  I think it is a great deal!

[PrincessMommy]

We've bought cars for under KBB value in our state (MD).  If you want to just pay taxes on the *price*, you have to have the price you paid for the car notarized and take that document to your MVA.  I can't remember if it was a letter or an official form we had to fill out.  Unfortunately, it wasn't worth it to go the extra mile to find a notary and go together with the sellers.  But, in the OPs case, it might work well since they know them personally.   Check your state's mva website and see what is offered.

Edited January 10, 2018 by PrincessMommy

[Scarlett]

We've bought cars for under KBB value in our state (MD).  If you want to just pay taxes on the *price*, you have to have the price you paid for the car notarized and take that document to your MVA.  I can't remember if it was a letter or an official form we had to fill out.  Unfortunately, it wasn't worth it to go the extra mile to find a notary and go together with the sellers.  But, in the OPs case, it might work well since they know them personally.   Check your state's mva website and see what is offered.

 

 

I am sure every state is different but here in OK the title is notarized with the purchase price but the DMV doesn't care.   They go  by the value, not the sale price.