I currently own a car jointly with another person. We are both on the title and both on the current loan. Now I have reason to buy the other person's share of the vehicle so that I am the sole owner. I cannot afford to pay off the vehicle outright, but I might be able to get together the money to pay out their share of the vehicle.

My original plan was to take out a new loan for the full value (loan plus other person's share), and 'buy' the car as if I were buying it from a private seller. However, it has occurred to me that doing so will require me to pay all of the taxes and fees which go along with purchasing a used car (registration, sales tax on 100% of value, usage fee, etc.).

Is there other option where I can convert/extend the current loan on my individual name; get additional loan that can be paid out to other owner as his share. I think this way I may only need to pay tax on 50% of the share (registration, sales tax, etc). Is there such an option available?

I live in NY, and the value of the car is around $18000. Any legal ideas for avoiding paying taxes on at least the 50% of the car that I've already paid taxes on?

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    You are asking how to avoid pay taxes which are legally required? I got that right? My own feelings about government and taxes aside, the board frowns on asking for advice on how to break the law. Commented May 7, 2016 at 20:52
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    I'm definitely not asking how to try and skirt the law. If they are legally required in this situation, then that will suffice as an answer. However, I did already pay taxes personally on half of the car, and the taxes were paid in full when we purchased it. Commented May 7, 2016 at 21:02
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    You will probably need to pay those fees again on the half car you are buying. Commented May 7, 2016 at 21:04
  • @JoeTaxpayer The question seems to be whether there is a legal way to buy out the rest of the car and avoid paying taxes on the part the OP already owns.
    – Eric
    Commented May 10, 2016 at 11:45
  • Tax avoidance is NOT illegal. Tax evasion is illegal. There is an important difference. Commented Sep 13, 2016 at 21:29

1 Answer 1


You should be able to refinance the vehicle and have the financing in just your name (assuming you can secure the financing). Since you are already on the vehicle registration, this would not constitute a sale, and thus would not incur additional sales tax.

To remove the other person from the vehicle registration, leaving you as the sole registered owner, in the state of New York, you only need to file an MV-82. It will cost you $3.


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