Not quite sure what they are saying here. Car dealerships will manipulate a price to help you with taxes. For example, assume you are buying a $20,000 car and they offer you $8,000 on your trade in. To avoid additional sales tax on the NEW car, they could offer it to you for $16,000 and give you $4,000 on your trade in. Owing or not owing money on a car loan should not matter a bit to the tax office. Regardless of how much you owe, you (or the buyer) are required to pay tax on the purchase. If you owe $10,000 and sell it for $12,000 there should be tax on the $12,000. If you owe $0 and sell it for $12,000 there should be tax on the $12,000.
I am still perplexed as to why they care what you owe. That should only come into play on the title in so much as the bank effectively holds the title. It just seems to me that they should look at the title, look at your divorce decree, confirm you are who you say you are and issue a title without your ex-wife's name. I know...I am preaching to the choir.
toyota said if the title said or instead of and, the dealership would be able to trade it in without her sig. so, does anyone have a typewriter cause it says neither.
so the answer this time first was "yes, that's no problem". i reiterated that i'm not done paying off the car and then she puts me on hold for five minutes and comes back and says since the bank still has the title, they'd have to surrender it to me so i can have it changed and then give it back to them. thinking about going for a 4th answer.
There is something I'm not understanding. The bank can change the title for you. They can add anyone and take anyone off as long as there still remains someone on the title who is also on the loan. It costs $7 to do this. I just added someone to a title. With a divorce decree I would think the bank will help you remove that person. They also get paid in full now, as you will trade it in to pay off the loan. You basically sell the car to yourself in front of your load officer. You sign both the "Sellor" side and the "Buyer" side with her name removed. Then the bank sends the title in for a new one with only your name on it.
There are auto title companies that do this type of stuff. You might try calling one and see how much they charge. Doesn't seem like something you should pay for, but it might be easier
Is it common for married couples to be on the title of each others cars? What would be the point of it?
It's easier to deal with if one spouse passes away. Also assume that a couple only has one car. If they get divorced it's the title holder's by default.
