Vehicle Sales & Registration Taxes/Fees

[CBnCO]

So, you pay sales tax when you buy a vehicle, then a registration/titling tax, then a personal property or use tax each year. Of course, if you ever sell the car then the buyer pays sales tax again. How they heck can I get into the government business!

That said, we are looking at a new vehicle and thought we had it figured out that buying 2-3 years old and driving forever was the best value; but, after seeing the very high taxes and fees we will pay (sales tax up front and most of the use tax over the first few years) I was thinking maybe something a little older with low/reasonable miles might be a better bet. Once a car gets to five years old here the use tax decreases considerably and at 10 years is virtually non-existent.

Anyone else ever consider this into their total cost of owning a vehicle?

[therethere]

I do! I live in Colorado and drive cars >10 years old. Minimum registration is around $95 once you get to that age. Taxes are one big reason I won't buy a newer car here. It can be like 1k a year for a new car! That's more than my car insurance. No thanks.

[CBnCO]

I do! I live in Colorado and drive cars >10 years old. Minimum registration is around $95 once you get to that age. Taxes are one big reason I won't buy a newer car here. It can be like 1k a year for a new car! That's more than my car insurance. No thanks.

Good point, I forgot to list the cost of insurance, which also decreases the older and less valuable a vehicle is.

[MilesTeg]

I do! I live in Colorado and drive cars >10 years old. Minimum registration is around $95 once you get to that age. Taxes are one big reason I won't buy a newer car here. It can be like 1k a year for a new car! That's more than my car insurance. No thanks.

Registration fees should really be based on weight and mileage, not age of the vehicle. While it looks like a nice bonus to frugal types, you just end up paying more other taxes to maintain the roads.

[Laura33]

This is very state-specific, btw, so yes, you should focus on the total cost of buying and identify the knee of the curve (our state doesn't have a use tax, and I get to transfer my existing tags at a fraction of the cost of new tags, so my analysis is different than yours).  If you have a big drop in taxes at 5 years old, I definitely wouldn't look at anything newer than that.  Also consider anything like state tax credits and/or HOV/toll lane exemptions for electric vehicles and any other costs/benefits available for the different types of vehicles.

[HawkeyeNFO]

Louisiana was the best place I ever registered a car:
- Yes you have to pay sales tax, but if you brought in your car from another state, and could show that you paid the tax already in that state, then Louisiana had no further charges.
- $30 for 2 years registration
- No inspection required

[DumpTruck]

2 to 3 years old is WAY too new!

Any 2000-2006 Toyota for $5k will do. 

For example I purchased a 2004 Toyota Sienna SLE (limited sucks because of leather interior) with 175,000 miles on it, for $4450

This is the worlds most practical vehicle with 268 tire melting horsepower and a 5 speed transmission. It drives as if you are perched in a cloud, effortlessly can cruise at 100 mph all day, but keep it under 90 and enjoy at sweet 22 mpg, but you can easily get 26.

The value is insane. She now has 200k and all I have to do is replace the timing belt and water pump (as preventative maintenance).

I can recommend any second gen Prius as well, get one with around 150k for about $6k and you should easily get another 100k out of it with no maintenance at all. Probably much more. The value of the second gen prius is astronomical

 

[TheAnonOne]

Louisiana was the best place I ever registered a car:
- Yes you have to pay sales tax, but if you brought in your car from another state, and could show that you paid the tax already in that state, then Louisiana had no further charges.
- $30 for 2 years registration
- No inspection required

WI is pretty good as well. Only $85 a year for ANY car, it is not based on anything, simply a flat tax.

[CBnCO]

I do! I live in Colorado and drive cars >10 years old. Minimum registration is around $95 once you get to that age. Taxes are one big reason I won't buy a newer car here. It can be like 1k a year for a new car! That's more than my car insurance. No thanks.

Registration fees should really be based on weight and mileage, not age of the vehicle. While it looks like a nice bonus to frugal types, you just end up paying more other taxes to maintain the roads.

For Colorado, it looks to be based on weight, but varies within a pretty narrow range. It's the use tax that is pretty steep in the first few years and based on the original MSRP that can make the difference between newer and older vehicles. I've got some more research to do; but, do hate the idea of paying hundreds each year just for the privilege of owning a vehicle.

[EarthSurfer]

For Colorado, it looks to be based on weight, but varies within a pretty narrow range. It's the use tax that is pretty steep in the first few years and based on the original MSRP that can make the difference between newer and older vehicles. I've got some more research to do; but, do hate the idea of paying hundreds each year just for the privilege of owning a vehicle.

You are paying for the privilege of using the roads, although license fees are a poor proxy for that.

Colorado vehicle registration includes "OWN TAX" (ownership tax) on the new vehicle cost.  If you itemize deductions, this portion is deducible.

The passenger vehicle & light truck tax is based on the original sales price of the vehicle, and starts at 2.1% for the first year, declining to 0.45% for years 6 - 9. For years 10 and beyond the OWN TAX is $3/yr. (I’m not certain if the value is set by the actual purchase price or the sticker price of the new vehicle. This could be expensive for a new EV if the price isn’t reduced by incentives.)

Additionally, there are flat fees, currently totally about $100, depending on county and state fees.

I have chosen to own vehicles that were at least 6 years old because of the structure of the license fees.

Overall, Colorado is a low tax state.  My property taxes in Denver run about 0.52% of market value for my condo and rental house.

[ixtap]

I live in Calif currently and heard the besides a new 12% tax increase on gas there is a new increased  vehicle registration fee/tax too. Both starting Nov. 1st. Gas has gone up quit a bit this week but am wondering about registration. I just sold my car (2001 Ford Ranger) which had annual registration of approx. $100 but sounds like that could go up by $100s. Anyone know the details? Will likely need to get another vehicle by Jan. I think sales tax will be around 9% but no clue what new license and registration costs. We don't have inspections just smog inspection which are approx $50 every 2 years.

We just renewed one car (due mid November) and you have reminded me to renew the other (due January). The total fees are less than $150 for each car.

[eostache]

I live in Colorado. I just renewed the plates on my car, a 2001 Subaru Outback. It was $70. I don't live in the Denver area, so no vehicle or smog inspection is needed.

I try to make a point of driving my car about once a week so it doesn't sit too long. I ride my bike or walk to work every day, 1.6 miles each way.

[FallenTimber]

Colorado is brutal. I pay $52 a year for an old 1981 2-horse trailer that only sees the road a couple times a year. And I pay $80 a year for a utility trailer that’s only worth $400. Our travel trailer is $600 a year. Truck is $350 a year. Plus we have farm vehicles and motorcycles. We probably spend over $1500 a year on tag renewals. And I have friends who pay more than $1500 a year on an RV.

Thankfully no inspections are required here. Just the occasional emissions test.