VicRoads Motor Vehicle Duty - Market Value, Do They Know?

LMelbEng on 28/02/2017 - 08:58
Last edited 28/02/2017 - 09:37

Hello fellow OzBargainers. My son has just purchased his first car. It was bought privately and is 13 years old. We now need to transfer the registration into his name. There is a Motor vehicle duty payable that is calculated on either the purchase price or market value, whichever is higher. So the obvious thing to do is to try to declare this value to be as low as possible. What I'd like to know is, how much does Vicroads know about the particular car in question? In this case, the registration just states make and the basic model information. However, there are lots of different specific models in the range and therefore their value will vary quite considerably. So for example, if you buy a Holden Commodore and it is a top of the range model, can you get away with putting down the value of the base model?

EDIT - More information:
The car in question is not a Commodore. However, If I do a search on Carsales for this model the cheapest is $1500 for the bottom of the range and the dearest is $26500 for a top of the range model (which was sold in limited numbers) in good condition. So based on these two values, the duty could vary from $106 to $1156. The car in question is the same as the top of the range model. However, because of the kms and mechanical condition of the car, the price paid was midway between these two values.

Poll Options

  • 12
    Declare price paid
  • 1
    Use base model price
  • 3
    Go somewhere in between
Automotive

Related Stores

VicRoads
VicRoads

Comments

  • tomsco on 28/02/2017 - 09:15

    For a 13 year old Commodore, would there still be much variation between the base and top models?

    Anyway, know doubt you can get away with a bit of variation, it's when people start getting ridiculous that they would amend it.

    • Gronk on 28/02/2017 - 09:26

      Pretty much this.

      At this age, all the v6 Commodore variants come in between ~3k and $5k so I'd just tell them $3k and be done with it.. Either way, in Vic (last time I checked) the stamp duty was 4% of the purchase price so you're looking at between $120 and $200.

  • Nugs on 28/02/2017 - 10:09

    what is it? massive variation.

    EDIT - More information:
    The car in question is not a Commodore. However, If I do a search on Carsales for this model the cheapest is $1500 for the bottom of the range and the dearest is $26500 for a top of the range model (which was sold in limited numbers) in good condition

  • bigticket on 28/02/2017 - 10:44
    +1

    In NSW the seller notifies the RMS of the disposal and the sale price. If your figures don't match you may be asked why.

  • Euphemistic on 28/02/2017 - 11:19

    Pretty much everyone in NSW writes down the price lower than what they paid in private sales to save stamp duty. As long as you aren't silly with your value and agree with the seller it won't be questioned.

    Once a car gets to 13yo the overall condition of the vehicle is more important than the bells and whistles.
    I'd be aiming for a 'value' at the bottom end of the market and claim it is below average condition. What did he actually pay for it?

    • MelbEng on 28/02/2017 - 11:39

      I agree, the condition is what determines the price. He paid $12000, but the car has done close to 200,000km and it needs $2000 - $3000 spent on it to get it back in good condition.
      My question relates to how much they know about the car. The registration just says the make and the type of model - not the specific model. So for example, if it was a Mercedes C class, it would be listed with VicRoads as just a Mercedes C class sedan. So if you bought a C63 for $100,000 could you get away with stating the value of a C200, which would be a great deal less.

      • Euphemistic on 28/02/2017 - 12:39

        I think they know enough.

        I'd be valuing it at $10-12k, assuming the seller doesn't need to put down the value as well - they probably need to be the same. In NSW you need to submit the value on both notice of disposal and when you transfer.

        If it needs repairs you could potentially write it down further, especially if you have some sort of record of what needs repairing.

        Now I'm keen to find out what sort of car it actually is. Non need to hide it on here, I suspect Vicroads won't keep track of forums to catch you out on value of used cars.

        • MelbEng on 01/03/2017 - 11:41

          Ok - It's a Golf R32.

  • spackbace on 28/02/2017 - 11:28
    +2

    Welcome to the one true purpose of Redbook and why it was set up… it's not for dealers, it's for the government, for this exact purpose.

    VIN check tells them exactly what model it is, and what it should be subsequently worth

    The car in question is the same as the top of the range model.

    2004 top of the range limited edition…? Monaro or something?

    • airzone on 28/02/2017 - 12:07

      I've bought and sold "parts cars".. Raised the eyebrow of an RTA staffie once.

      • spackbace on 28/02/2017 - 12:09

        Yeah not saying it's highly monitored area, but I guess just don't be surprised if you get caught

  • Wampus on 28/02/2017 - 11:30
    +1

    I bought a car from a private seller for $14k. We agreed I'd pay $10k for the car and $4k for the stereo, so I put 10k down as purchase price for stamp duty. Stereo was stock

  • zuuutoootuuu on 28/02/2017 - 12:19

    Vicroads are pretty cluey, if they suspect a it's too low they report it, it will get checked and then SRO gets involved resulting in extra costs to teach you a lesson.

  • Forskin on 28/02/2017 - 12:35

    I bought my 2001 v8 commodore for 2.5k but wrote down $1000 when registering . No dramas

  • garffi on 28/02/2017 - 14:04

    Nothing ridiculous should be fine. I bought my car for $22k, I wrote down $20k.

  • LyndonBBear on 28/02/2017 - 16:45
    +1

    He paid $12,000 for a 13 year old Commodore with 200,000 ks and still needs to spend $3,000?

    • MelbEng on 01/03/2017 - 11:42

      No, it was a Golf R32

  • [Deactivated] on 28/02/2017 - 20:09

    Market Value

    The amount of duty depends on the market value of your vehicle, which is the greater of:

    the purchase price, or
    the price which could be obtained in the open market.
    Market value includes:

    all fitted accessories
    any trade-in allowance
    the value of improvements or repairs made prior to the application to transfer or register the vehicle
    delivery fee (on new vehicles)
    any GST that is paid.

  • JOCKz on 05/03/2017 - 17:27

    Do what you want but if they decide to chase it up and theirs a paper trail that says you paid more than you led vicroads to believe. You might be in a bit of trouble. The difference between declaring it at 2k vs 12 is minimal.

Login or Join to leave a comment
Login Join