From my research, it looks like buying from a dealer is subject to a Sales Tax.

Now, when you buy from a Private Party, you pay them straight up, but then when you register it at the DMV you have to pay a Use Tax which is the same cost of a Sales Tax.

Is this correct? Or, is there an advantage to purchasing from a dealership or private party based solely on tax?

 

in a private sale, the tax will be based on the value which is placed on the transfer section of the pink slip.

 

u can try and talk to them to list it as $0 on the title when u transfer and as you register u can acutally tell them the other party "gift" the car (you guys are considered friends). they will need some info on both parties but just act like youve known each other. all i can remember is they need the adress of both parties and names but honestly i dont know how the whole procedure works

 

I've purchased a few used cars in CA and what I typically do is ask the seller to write some ridiculous amount on the pink.

For example, a $15k car, I'll ask the seller to write $5k on the pink. I was once asked by the DMV clerk why it was so cheap. I told her that the car was just in a wreck and I have a lot of work to do...