Market Value Declaration on Victoria Used Car Transfer Form

coolrunnings on 03/04/2019 - 21:11
Last edited 03/04/2019 - 21:13

Hi,
I live in Victoria and I was fortunate enough to buy a used 2011 Honda CR-V with roadworthy for $6,500 this week because it had very high kilometres and the owner didn't feel right selling it for more.

The receipt says $6,500 and I have a bank receipt for the bank check at $6,400 and a handwritten receipt for $100 when I gave a cash deposit. Will Vicroads make problems for me if I write $6,500 in the "Market Value" box on the transfer form? I know I got a good deal, but have no idea what the "Market Value" really is, and anyway, $6,500 is what I paid!

I understand there are tax ramifications here and there is a warning on the transfer form that undervaluing a car is a crime.

Anyone have any experience with this?

Automotive

Comments

  • tryagain on 03/04/2019 - 21:21
    +1

    Not in Vic but can't see it being an issue, things are generally worth what people are willing to pay for them, due to "Very high Km's" the price isn't unreasonably believable.

    • coolrunnings on 03/04/2019 - 21:26

      According to Carsales.com.au, the lowest a 2011 CR-V has sold for in the past six months is around $9900.
      So, I got an "Ozbargain" for sure.

      • burningrage on 03/04/2019 - 21:30
        +1

        Once I went to Vicroads where I had to deal with some registration issue for my cousin's car.

        One of the proposed solution was to transfer the registration into my name. She merely asked how much do you think your car is worth?

        In this case, I answered honestly but declined to go this way due to stamp duty cost but that tells me "market value" is my pretty much in the eye of the beholder.

      • tryagain on 03/04/2019 - 21:56

        How many km's is "Very High" though? You can find typical used car price's for your particular model here https://www.redbook.com.au/cars/results?q=%28%28Make%3D%5BHo…

        • coolrunnings on 03/04/2019 - 23:15

          290,000 kms.

          • tryagain on 04/04/2019 - 02:34

            @coolrunnings: You got a good deal, not too far outside the norm to be an issue I would think though.

  • whooah1979 on 03/04/2019 - 21:37

    No more than $4000.

  • thatonethere on 03/04/2019 - 21:53

    Should be fine. If you said it was $100 they might look into it.

  • brad1-8tsi on 04/04/2019 - 08:18
    +1

    You'll be fine if you have supporting documentation in the rare event that the ask for it. Your kilometres are about double what is considered "average".

    I always put mine down as the lowest trade-in price on Redbook.

    When I did Dad's Honda 2005 Accord Euro into my name in 2016 the woman asked me what the value was and I said "I paid nothing. It's an inheritance that I don't want or need and the car is a bit of a crapbox that needs about $1k in service work so I think it's worth nothing to me."

    She'd already had to deal with several other issues (e-tag, licence surrender, refund of e-tag balance) that hadn't gone smoothly and she could tell I was stressing and said "I can put it through for $1000 which will cost you $30 which is what the e-tag refund was". So I went with that.

  • sparkles on 04/04/2019 - 08:39

    Look up Redbook, then use the lowest number. VicRoads have no idea how many kms is on the car and it's true value.

    • coolrunnings on 04/04/2019 - 23:32

      I'm naturally cautious and was thinking of doing this if I had to but why should I pay more taxes than I have to if I did nothing wrong?

  • Typical16-bitEnjoyer on 04/04/2019 - 09:32

    It's extremely unlikely but it might get flagged. Provide the receipts you have, explain the high kilometres reduces it's value and you should have no further problems.

  • djkelly69 on 04/04/2019 - 09:51

    If it was an arm's length transaction and you paid $6,500, write $6,500. Obviously if VicRoads has an issue with this, you have evidence to defend it.

    • coolrunnings on 04/04/2019 - 23:29

      It was indeed an arms-length transaction. I found the car on Carsales.com.au [as an Ozbargainer I always search for lowest price first] and I didn't know the seller before the transaction. I have screenshots of the ad. As a former New Yorker I was initially suspicious of the low price [Stolen? Lien?] but it all checked out. Original owner… Highway kms… Well maintained… I bought it on the spot.

  • horsome on 04/04/2019 - 10:52
    +1

    Not a vic but that would be for related party transactions. In third party terms the market value is a what you paid.

    • coolrunnings on 04/04/2019 - 23:31

      Thanks. This makes sense to me.

  • [Deactivated] on 04/04/2019 - 11:17

    On a recent purchase I put $3k on the form for a $6k car. Bloke behind counter didn't give a rats nasty. If queried why so cheap I was just going to say it had some paint issues and was going to cost me a respray.

  • wordplay on 04/04/2019 - 20:39
    +1

    friend put $7500 for a 2016 secondhand M3 that i reckon he had to pay close to 10x that for. no questions.

    • coolrunnings on 04/04/2019 - 23:40
      +1

      $7500 for a 2016 M3 - That would be an Ozbargain of the century.

      • wordplay on 08/04/2019 - 19:56

        yeah, but they still didn't question it when change of owner and new rego papers submitted.

  • coolrunnings on 05/04/2019 - 13:40

    Update: filed the paperwork at Vicroads today at market value of $6500. Sailed through no problem. The clerk examined the form closely but didn’t think anything was amiss.

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