Is NADA a Racket?
 

A few months ago I sold a 91 300D with 209,000 miles for $3650....both buyer and seller were happy. Yesterday they went to register it and the State of Rhode Island, in its infinite wisdom, says the car's a classic car worth $8,000 and thus 7% of that in taxes was due!

I'm tempted to think states like RI PAY NADA to publish inflated values to increase their tax revenue!!

Anyway, if anyone would like to buy my OTHER 91 300D, the one with only 100,000 miles it, it's available for $16,000. I'm sure NADA will confirm that it's worth every penny! ;)

I tend to think that NADA guides are targeted to a specific market : banks, dealerships, and government agencies. You know...the folks with more to gain from higher retail prices and lower trade in values. Historically, I suppose they were the ones who bought the subsciptions and NADA rewarded them accordingly.

Although irrelevant to this discussion, I find Edmunds to more accurately reflect real world transactions.

Doesnt the sale note over ride that?
What are insurance co's paying out for them?

Don't let the IRS know. They will start charging capital gains tax on the money NADA says you should have received!!!

No...actual sales price or NADA value, WHICHEVER IS GREATER.

Is living in RI realy worth the hassle? TN is glad to get 10% of what the buyer says they paid for it which must = the notation on the title. I won't license my recently purchased $500 SD until I decide that it is road worthy. Then I'll pay $50 for sales tax and ~ $75 for tags. Obviously, I'll pay sales tax on any parts or services bought.

Finally! A state law sillier than those of california.....

I am amassed that a government authority would be using a price guide that is generated by a private dealer organization. It is only a guide.
One would expect them to have their own list based on reported sales.

in NC, the price is debated at the tax office, if you paid little for the car, and can show why it's worth less than they show it's worth, (like high mileage, or what have you) you only pay the minimum...
a 240 I GAVE to a guy helping me in my yard for the last few months, got a tax bill stating the value is $8K on the car... um... rust in the battery tray, 245K on the odo, and it's an automatic... $8K? uh, really?
I told the guy to IMMEDIATELY dispute the charge. after 30 days it's irrefutable until next year...

If you meet someone who bought a Mercedes from a Dealer for less than the NADA stated value see if you can find out if the paid the NADA value tax or the one the actually bought the Car for.

What do you think happens when reporting a lower selling price results in paying less tax?

From
State of Rhode Island: Division of Motor Vehicles: Sales Tax

"Sales tax in the State of Rhode Island must be paid at the time of registration. If you are registering a vehicle that you purchased from a dealer, the sales tax is 7% of the purchase price, minus trade-in and other allowances, such as rebates. This applies to passenger vehicles only. Trucks are excluded from the trade-in allowance.
If you purchase a vehicle from a private party you will pay sales tax based on 7% of the NADA book value (blue book) of the vehicle or on the purchase price, whichever is higher.
If a vehicle has been given to you as a gift from an immediate family member, you will not have to pay sales tax on the vehicle, as long as the person giving you the vehicle has paid their legal sales tax. A signed and notarized letter of gift is required to exempt you from the sales tax.
You must pay sales tax on your vehicle even if you do not register the vehicle.
Sales tax must be paid by the 20th day of the month following the month of purchase.
For example:
Bill of sale date is February 1st. You have until March 20th to pay your sales tax even if you do not register the vehicle.
After that date, interest and penalty on the original tax will begin to accrue."

In the front of the NADA book it tells how to deduct for reconditioning.

So we estimate ....new paint, engine swap, transmission rebuild needed, front end, misc parts, labor = -$12,000 + 8,000 NADA = -4,000 * .07 = $2800 that the state owes us? I'd hit it.

mathematically, $280, and good luck in collecting... :)