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So if you're buying a car worth $30,000 and your trade-in is worth $20,000, you'd be charged taxes only on the $10,000 difference between your new vehicle and your old one.
You must pay vehicle sales tax when you buy a used car if you live in a state that has sales tax. However, you do not pay that tax to the car dealer or individual selling the car.
For example, if your state charges a combined 10 percent in state and local taxes, and you buy a $40,000 car, you can expect to pay $4000 in taxes. If you have a trade-in worth $10,000, you can ...
In the used car market in the United States and Canada, buy here, pay here, often abbreviated as BHPH, refers to a method of running an automobile dealership in which dealers themselves extend credit to purchasers of automobiles. [1] Typically, purchasers of cars at BHPH dealerships have poor credit history, and loans have high interest rates. [1]
The state’s sales tax also adds up to around $3,064 in the first year to the cost of car ownership. 8. Michigan. Total cost: $26,434. State sales tax: 6.00%. Average insurance: $2,133. Annual ...
The state of Georgia, which typically runs lower on cost of living, is not so cheap when it comes to buying a car. Its state sales tax of 6.6% results in a steep $3,216 or so in tax on the car ...
Personal property tax is calculated based on what you owned on Jan. 1 of a given year. If you owned the car on Jan. 1, 2022, you have to pay property tax on it for the full year of 2022.
Due to deprecation, buying a used car rather than a new one is more cost-effective. By the time a car is sold on the used market, much of its depreciation has already taken place and has been paid ...
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