Sales tax owed on private sale? Driving for Dollars by Terry Jackson • Bankrate.com

Dear Terry,
When you purchase a vehicle from a private owner in Arizona, is there a sales tax collected when you transfer the vehicle at the DMV?
-- Don

Dear Don,
Arizona, like most states, collects sales tax when you register the vehicle.

And don't try to understate the actual price paid because most DMVs will check the amount against the Kelley Blue Book value and charge tax against the higher rate if they think there's something funny going on.

Here are this week's reader questions:

• Surprise! Car salesmen think buyers are liars • Can I trade my car in without the OK of a co-owner? • Is a state sales tax owed on private-sale used cars? • Can I refinance my car that's only two months old?

If you have a question for Terry, e-mail him at Driving for Dollars.