Transferring Car Rego & Ownership to Spouse to Save on CTP Costs

freedomofspeech on 06/07/2022 - 14:16
Last edited 25/07/2022 - 13:34 by 1 other user

Hi there,

We (my wife and I) are driving an old Toyota - about 20 years old and worth maybe $3k.

Currently the car is registered on my name and since I have demerit points, the CTP insurance charges about $200 extra. Also, my partner is over 30 and I am just under so we would get another $100 off as part of 'Good Driver Discount'.

The car's rego and current CTP insurance is as of May 2022.

My thoughts were to transfer the car ownership to my wife:

1) "Sell" to wife for $1.
2) Register car in wife's name
3) Transfer CTP to wife's name -> As I understand it is automatically transferred to new owner but no refund is applied for current rate
4) Plan to retain current Third Party Property Damage -> But even if not this is monthly and could re-sign up for this.

P.S. We are in NSW.

Appreciate your thoughts.

e/ Just read there is no such thing as CTP refund
"Unfortunately, you will not be able to get a green slip refund if you sell your vehicle. When you sell your car, the remainder of your CTP is simply transferred to the new owner. As the CTP is still active, just no longer in your name, there is, unfortunately, nothing to be refunded. "

Thanks

Automotive

Comments

  • brad1-8tsi on 06/07/2022 - 14:57
    +2

    Ce careful understating market value for the stamp duty.

    When I transferred Dad's Honda into my name after he died RMS were fairly lenient when I asked how much I should put as I had paid $0 for a $6k car. I think we agreed $2k was as low as I could go without causing some RMS computer algorithm to ask questions.

    It seems a lot of faffing for $200 gain

  • Euphemistic on 06/07/2022 - 15:20

    Can you transfer within family without ‘selling’ the vehicle? Might cost you more in stamp duty than it’s worth in CTP savings.

  • yogihogi on 06/07/2022 - 15:22
    +1

    You can transfer to your spouse for free in NSW, well four years ago you could. Actually need to pay transfer fee but no stamp duty so value doesn’t matter

  • KaTst3R on 06/07/2022 - 15:26
    +1

    $1 agreed price will definitely trigger a check by a case officer. At least $600-$1000 which seems reasonable for a 20 year old car.

    • GG57 on 06/07/2022 - 15:39

      Money out of and back into the same bank account; it shouldn't matter apart from the stamp duty (if that is what is required).

  • bobbified on 06/07/2022 - 15:48
    +2

    I remember seeing it was free to transfer to the spouse before, but I can't seem to find it anymore.

    Anyway, the stamp duty is calculated at $3 per $100, or part thereof, of the vehicle's value so, at most, it's only going to be $90 plus whatever transfer fee they might have (prob $40 or $50) so it's not really that much if you're going to be saving $100 each year after that.

    But then you turn 30 soon and depending on how old your demerit points are, it may not even be worth the effort!

  • coffeeinmyveins on 06/07/2022 - 15:49

    Is money tight? Is it really worth all this hassle and potential manual checks/questions for a few hundred bucks?

    Ask how much your time is worth. I have a mate that does things "on the side" that generates him a grand total of about $12 an hour. Totally not worth it.

  • Fergy1987 on 06/07/2022 - 16:31

    pretty sure stamp duty will destroy you

  • freedomofspeech on 06/07/2022 - 16:57

    I will see if NSW transfer to spouse is still free.. Every year 200-300 dollar saving sums up :)

  • doctordv8 on 07/07/2022 - 07:53

    Careful, follow the Rules.
    Sale of Vehicle Stamp duty is based on Value of Vehicle …NOT a gift price. The penalties were 7 x missed Revenue to the Dept I recall…in Qld, and Nil Transfer Fee to Spouse. NSW may be different..or even worse.

    Random Stanp Duty Valuation checks are carried out by the Government.

  • justwii on 25/07/2022 - 13:29
    Merged from Free Option to Transfer Car Registration to Family Member?

    Want to transfer my car rego to a family member because it seems cheaper that way for green slip and comprehensive quotes. Its weird as I was added as a driver in the quotes anyway but depending on who is the register the quotes differ.

    Is there a free option or at least some way to bring down the cost of the transfer? State is NSW if that matters. Thank you

Login or Join to leave a comment
Login Join