SL500 for $20, anyone?
 

Cool story!

http://sports.yahoo.com/nfl/blog/shutdown_corner/post/Steelers-coach-sells-Mercedes-to-team-cafeteria-?urn=nfl-wp4503

Steelers coach sells Mercedes to team cafeteria worker for $20

By Chris Chase

Steelers coach sells Mercedes to team cafeteria worker for $20A cook at the Pittsburgh Steelers team complex is driving around in a red Mercedes convertible thanks to an unexpected and generous deal from the franchise's former secondary coach.

On his final day in Pittsburgh before taking over as defensive coordinator for the Arizona Cardinals, Ray Horton gave his 1999 Mercedes SL500 to cafeteria worker Maurice Matthews.

The cook had always kidded around with Horton, telling him he was coaching his position and asking when he'd be allowed to drive his sports car. Horton would jokingly reply, "you can't afford the gas in it."

But on his final day in Pittsburgh, Horton approached Matthews to say goodbye and asked if he could borrow whatever money he had in his pocket. When Matthews handed over a twenty, Horton said "sold for $20!" and handed him the keys to his car.

"Ray said, 'Hey, you always liked the car, you're a good dude, I know you'll take care of it," Matthews told the Pittsburgh Post-Gazette. "It's yours."

The next day he drove Horton to the airport and received all the paperwork to take ownership of the car. With 64,000 miles on it, Matthews ended up paying $20 for a vehicle that carries a Kelly Blue Book value of $17,735.

"It's just taking care of guys who took care of you," Horton told the Arizona Cardinals team blog.

The Cardinals got a good man. And cafeteria workers in Tempe just found their new favorite customer.

Thats illegal in my state. If a vehicle is sold way under value there have to be an explanation as to why. Even then most get stuck paying the sales tax for the real world value. Same as when a vehicle is gifted.

Wow -- your state regulates sale prices? That's odd. Here in IL, I could buy that car for $20, but I'm going to pay the state's flat tax rate for that year car if I report the sale price as $20.

In any case, I liked the story and thought it a generous gesture by that coach.

That's what I was thinking, like buying a discounted phone and paying sales tax for the full amount. Gifts like this one can ruin you financially.

Yup. Its to deter people from underreporting to avoid paying taxes. You can get away with fudging the numbers somewhat. Not sure about IL, but up here the owner always hold the title, even when there is a lien. Also sales tax is paid at the time of title transfer at the DMV.

We pay sales tax at time of title transfer, too (on private sales, anyway). And there are minimum taxes (based on the age of the vehicle) as well, which generally negates an under-reporting.

So at what percentage under market-value is it illegal? That's very strange, to me. How does your state value a car that needs work in some capacity?

EDIT: I see you mentioned that "there has to be an explanation" about under-valuation. I suppose that's how you deal with cars that need repair.

I'd gladly pay $20 for that car PLUS the sales tax on it's actual value. :grin: Your point is valid, though, in that the cafeteria worker may not be able to afford the tax.

Its just sales tax on selling price. We dont pay that minimum tax thing.

Ah, I see. In IL, if the sale price is below the state minimum for that year (other criteria may apply, too), a minimum tax is applied at the time of title transfer.

Ouch, that sucks.

This story reminds me of my younger sister. My sister owns a shipping and delivery business in Florida. And one day she was driving home and saw a man, woman and two little kids stranded beside the road with smoke coming out of the hood of their car. She stopped and gave her nice mini van to them. She signed the title over to them and walked home. :D:D:D

They did not give you sister a ride home at least?

I don't remember, I'm sure they did. I will ask her the next time I talk to her. My sister is a great gal. :)

The most expensive gift I ever got was my 500SL.:D

Maybe he got an $8000 estimate to replace the soft top hydraulics and was feeling generous.

When I lived in Connecticut, the local township charged a substantial personal property tax - every year - on vehicles.

It was a disincentive to owning a nice car. One mechanical designer with whom I worked routinely drove a beater. When his family went on a driving trip, he'd rent a Lincoln Town Car.