Trading a bike (private parties)

[bodhizafa]

Private parties....sounds like I'm selling champagne room passes. Anyways.......has anyone traded a bikes with someone? I might have a chance to do a straight swap with someone but I'm not sure how to go about it.

Do we sell the bikes to each other with no money exchanged? Do we just sign over titles? I read on another forum that Colorado will treat it like a trade-in and only tax for money that changed hands.??? Hope that's true, I know they don't go by the price of the bike but rather its worth.

Other info: out of state bike (pretty sure I will need a VIN inspection). and the owner never got it registered, so the original owner and the 2nd owners names will be on the title as sellers, could this be an issue?

[Generic]

Private parties....sounds like I'm selling champagne room passes. Anyways.......has anyone traded a bikes with someone? I might have a chance to do a straight swap with someone but I'm not sure how to go about it.

Do we sell the bikes to each other with no money exchanged? Do we just sign over titles? I read on another forum that Colorado will treat it like a trade-in and only tax for money that changed hands.??? Hope that's true, I know they don't go by the price of the bike but rather its worth.

Other info: out of state bike (pretty sure I will need a VIN inspection). and the owner never got it registered, so the original owner and the 2nd owners names will be on the title as sellers, could this be an issue?

That last item will be a huge PITA, trust me. Get them to have a new title issues in their name and then sign that over. If they don't you'll be going through months of effort to get it taken care of.

[Jmetz]

I agree with Generic. When I've done vehicle trades I just put like $500 or $1000 on the title and do a BOS for the same.

[bodhizafa]

That last item will be a huge PITA, trust me. Get them to have a new title issues in their name and then sign that over. If they don't you'll be going through months of effort to get it taken care of.

What took months? Getting the original owner to sign something again? I haven't seen the title so I'm not sure what is filled out.

[Generic]

Colorado doesn't like two party titles, they will ask you to have the second owner either get a newly issued title or fill out a statement of fact, then you turn in that statement of fact and they'll investigate before issuing you a new title.

[bodhizafa]

Colorado doesn't like two party titles, they will ask you to have the second owner either get a newly issued title or fill out a statement of fact, then you turn in that statement of fact and they'll investigate before issuing you a new title.

I'm surprised Colorado will actually investigate something.

Supposedly the Utah title has a spot to fill out in such a situation, I'm guessing Colorado will ignore it though. Wonder if it would help that he still has the original bill of sale from when he bought it.

[Native]

on cars I did a trade, smooth as silk & no tax, did a co-owned (ie husband&wife) w/only the wife's sig, no problem

[BushyAR15]

I agree with the above comments. Personally, i won't mess with ANY deal if the person holding the title is not the same person listed on the title AND title (literally the piece of paper) is not clean, meaning no things like someone else's name who was going to buy it but backed out, so no signature but a name listed… Its just a giant headache…

[blaircsf]

It depends on how the title is filled out. Most titles have an area to do reassignment, but it is only valid for licensed dealers. If the second owner floated the title (never titled to them and never filled out the title) it is technically a problem legally, but it happens all the time. The state doesn't want this to occur because they want their money each time.

One other thing to watch, depending on what state the current title is from it may be required to be notarized.

[Ph03niX]

Yeah definitely make sure the guy whose selling/trading it to you has the title in his name..

Also, if you want to do a trade, on the Bill of Sale and title coming from the owner, where it says price, just write down trade. I've down that on the 3 vehicles I bought. As long as the previous owner signs the title when trade is wrote on it (even if you just paid for it, no one will get in trouble as long as you don't tell them.. lol). So you won't be taxed for it. And they won't charge you tax on the trade either.

[bodhizafa]

It depends on how the title is filled out. Most titles have an area to do reassignment, but it is only valid for licensed dealers. If the second owner floated the title (never titled to them and never filled out the title) it is technically a problem legally, but it happens all the time. The state doesn't want this to occur because they want their money each time.

One other thing to watch, depending on what state the current title is from it may be required to be notarized.

I talked to the DMV on the phone and they said the same thing about the reassignment being dealer only. Looks like he is just going to go to the DMV and get the title in his name to make it easier. Good to know about putting "trade" in the price. Its a straight trade so should be good. Thanks for the info.

[Frankie675]

I registered my last sumo as a "trade" a couple months ago. I just went to the DMV, I engaged in friendly conversation, and asked - "What do I put for in the price box on the title if I traded another motorcycle for it?" and she said just write the word TRADE into the box. She then went on to tell me about how I won't have to pay taxes. I just acted surprised and very grateful. She was happy. I was happy. All was good.

[Frankie675]

I just went to the DMV today to register a truck I bought on tuesday. I told the lady that I traded my car for it (I sold my car to get a truck so I don't see why I should pay anyone for that). This lady said that they don't do trades, so just put whatever price I wanted to in the Price box. I put $100 and got my title. - Last time they told me to put the word trade in the box so I don't know what changed.

It's all about being nice to those dmv ladies. They get shit on all day and rarely get complimented for their services.

[longrider]

When you trade through a dealer sales tax is only charged on the difference. Zero or a negative difference (trade is worth more than the purchase vehicle) results in no tax. Why should a private trade be different? If you gave a guy $1000 plus your bike worth $7000 the purchase is still just $1000.

[FZRguy]

Used to be if you were "gifted" a vehicle, there is no tax. Not sure if that still stands. I agree with what some of the others have said, you may have diff outcomes in diff counties and even with diff offices in the same county.

[FZRguy]

when I buy a vehicle if I lie they won't collect tax.

The state has already collected their tax in the form of income tax on every dollar we earn. Sales tax is double taxiation.

[longrider]

im always nice.... I've done the dmv rodeo as much as the next guy.
Just trying to get facts straight.

So on your bike registration it says "trade" under purchase price?
your truck says "100"

If this deal just happened please share what your reciept says.

what I'm hearing from you and longrider is ....
when I buy a vehicle if I lie they won't collect tax.
Bullshit.
Show me.
I hate taxes and no way am I letting anybody skate while I pay.

I know at the dealer level ( I work in the industry) that is an absolute fact. Of course at that level you cant lie about it as everything is documented on the sales contract. At the private level the same rules should apply but as documentation is much more difficult I could see why you would get different answers from different DMV people.

[Frankie675]

When I registered my Sumo the lady physically wrote "trade" in the purchase price box.

3 months later (yesterday) a different lady said something on the lines of the DMV not recognizing trades so I should put whatever price I wanted - I wrote $100 in the purchase price box.

Like someone mentioned earlier - If you go to a dealer and have a trade-in thats worth 10k and you buy a $15k vehicle - you only pay taxes on $5k. Well if you privately sell a vehicle for 10k and buy a private party vehicle for $15k you'll have to pay taxes on the $15k. Isn't that bullshit? But there is the "trade" catch. If you traded your $5k motorcycle for someone else's $5k motorcycle would any funds be exchanged? So why would you pay taxes on it?

My biggest problem is that once a motorcycle/vehicle is purchased new the owner will pay taxes on it. This is fair. But why should every other owner pay taxes? Tax was already paid for the vehicle once, and that should be enough.

I also just bought a KTM 690 enduro from Cali yesterday. It only has 300 miles on it, but I got it from a dealer for a almost $4k less than the new prices. After asking the DMV, while I was there yesterday, she informed me that I still had to pay CO taxes on the bike. This is going to cost me somewhere on the lines of $700 for a used bike that had already had been taxed and not even purchased here in Colorado? Yep - Completely f-ing retarded in my opinion.

[FZRguy]

I'm all for ditching the Federal and State income tax system for a sales based tax system. Doubtful that will happen any time soon.

[Ph03niX]

Just write down trade.. lol.

The only thing is when you register your vehicle, the amount you pay for registration is based off of the price the vehicle is worth. More expensive vehicle=more expensive registration.

[bodhizafa]

Wow, this turned into an informative thread

I'll probably just do the trade and write down whatever the DMV lady tells me to write. Is there anything other than the VIN inspection that has to get done for an out of state bike?

[longrider]

If the seller gets title in his name as you mentioned earlier then all you need is a VIN inspection which any dealer can do.