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?