Best Place To Buy A Car
If you want to find the best place to buy a car but you are afraid of the multitude of taxes, this article will point out where it would be more convenient to purchase a vehicle. Most of the people don’t really care about the taxes and fees of a vehicle because when you buy a new car, the registration fees and the sales taxes are automatically added to the balance of the loan. However, many of us get quite agitated if we happen to live in a certain state that levies a car tax year after year.
Let’s take into consideration three cars and add up their taxes and fees over the next five years – a Toyota Camry LE which is worth $20,000, a Ford F-150 that costs $26,000 and an Audi A8 L that will set you back $113,000. For the first car, you will have to pay about $220 in taxes and fees over a 5-year period if you live in Oregon. But, if you are unfortunate enough to live in Nevada, you will have to pay over $2,500 which is almost $2,300 more than Oregon.
Most of the states charge a car sales tax in year one plus title and registration charges plus (if applicable) lien fees, emission fees and plate fees. After that they levy a registration fee each year. If the total of the fees you pay in years 2-5 are higher than the fee for the registration, it means that you pay an excise or property tax for each year. Each and every single state has a different methodology which is most likely based on a declining percentage of the car’s original value or a fix percentage of a depreciating value.
In the database, the local fees and taxes are not included. For example, in Colorado, the towns, counties and regions levy their own taxes. For those of you that live in Boulder and want to buy the Toyota Camry, you have to know that for the first year you will have to pay a regional tax consisting of 1.2%, a city tax of 3.41% and a 0.65% county tax, which will all cost you another $1,072.
Oregon is the state where its residents are free of sales tax. The car buyers will have to pay a registration fee and a title fee in the first year of $112 which is quite affordable. Every two years after that they have to pay $54. The 5-year total is $220, not very much in comparison to other states.
Alaska is another state that skips sales taxes. Not including the local taxes, the Camry’s fees are $315. In Alabama you will have to pay $508, in Delaware $695, in Virginia $725, in North Carolina $748, in South Dakota $793, Wyoming $841, New Mexico $851 and Louisiana $870 round out the top 10 of tax-friendly states in the US.
Nevada is the most expensive state in the US to own a regular car as far as taxes and fees is concerned. For the Camry LE, a driver must have to pay during 5-years a grand total of $2,507. Even worse than that, Nevada is also the most expensive state for the one-year charge which is $1,576. For Nevada citizens that have multiple cars, things get even worse than that. A Ford-150 XLT owner will have to pay $3,575 over a 5-year period and if you decide to keep the Audi A8 L in the garage, prepare to pay $15,509 over that same period.
The largest parts of these high prices are the consequences of the one-time federal state “gas guzzler” taxes that will set you back $1,700. This tax will kick in on a sliding scale for the cars (not trucks) that have an EPA rating of less than 22.5 mpg (combined).
Another expensive state which should be avoided if possible is Indiana which is the 2nd most expensive state as far as taxes and fees is concerned for a typical sedan, standing at $2,504 for the 5-year period. In addition, it is the most expensive in the United States for truck owners as they will have to pay for the F-150 more than $3,700.
California is certainly not the best place to buy a car, as you will have to pay more than $2,200. Other expensive taxes and fees are to be found in Arizona – $2,378, New Hampshire – $2,045, Iowa – $2,043, Minnesota – $1,931, Utah – $1,889, Colorado – $1,790 and of course, Washington D.C. with taxes and fees that will set you back $1,651.
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