At Valley Car Group, we want our customers to realize that a car costs more than just its sticker price. Variables that impact the total cost of buying and owning a used car include:
- State and local tax rates
- State registration fees
- Insurance fees
State and Local Tax Rates
Most states and cities require car buyers to pay sales tax based on their place of residence rather than where a vehicle was purchased. In fact, buying a used car out of state sometimes requires a temporary license plate from the state in which the car was sold, which can actually add to the cost of the vehicle.
If you are considering buying a car far outside your area of residence, be sure to carefully examine all potential tax benefits and determine any hidden tax pitfalls resulting from the deal.
State Registration and Licensing Fees
Each state sets its own registration and licensing fees. These fees often are the same regardless of what type of vehicle is registered and licensed. In some states, however, fees vary depending on the age of the vehicle, purchase price, taxable value, weight, your driving record and other factors.
Car insurance is one of the most expensive elements of owning a vehicle. Policy premiums depend on several factors, starting with the type of policy and the amount of coverage it offers. Insurance premium costs are also based on your driving record, age, marital status and retirement status. Other factors include your region of residence, whether your vehicle is stored in a garage, and the number of miles your vehicle is driven each year.
Insurance premiums also depend on the type and age of your vehicle. Costs vary among makes and models, and between body styles and trim levels of the same model. Typically, the newer and more performance-oriented the vehicle, the costlier it is to insure.
Maintenance and Repair
Once you purchase a vehicle, you have to factor in maintenance costs like oil changes, repairs, etc. In fact, Nerd Wallet estimates that the average maintenance cost for a used car is around $500-700 a year!
Depreciation refers to the amount of value a vehicle loses each year following purchase. In fact, it’s estimated that a new car loses 30% of its value in the first year. This means if you purchase used and get a vehicle that is only a couple of years old, you’re letting someone else take that depreciation hit for you.
Why Choose Valley Group
Do you currently have a vehicle that is eating a hole in your wallet? Valley Car Group wants to buy it off you! We will meet you, conduct a short appraisal on your vehicle and then give you a check on the spot! To schedule your free consultation with us today, click here.