This actually doesn't accomplish the thing you're hoping it would! Here in Texas, there is a sales tax of 6.25% when you sell a car. They found that people wer

This actually doesn't accomplish the thing you're hoping it would! Here in Texas, there is a sales tax of 6.25% when you sell a car. They found that people were doing stuff like saying they sold their car to their neighbor for $100 so that the neighbor would have to pay 6.25% of $100 instead of 6.25% of $2500. And maybe the neighbor agrees to some untraceable off-the-record compensation like painting your house for you. There's an incentive to create this kind of deal because neither party loses money to taxes, benefiting both. So realizing they were losing out on revenue, the state changed the law and created something called Standard Presumptive Value. Some method exists to look at comparable cars to estimate the value of a car (based on model, mileage, etc.). Now you pay 6.25% on the actual sale price or the SPV, whichever is higher. Sometimes the car is in worse than average condition (not running, wrecked, etc.), and the SPV is too high, and yes, there's a procedure for that involving a professional appraisal.