Are Used Cars Exempt from Purchase Tax?
2 Answers
Used cars are exempt from purchase tax. Precautions for purchasing a used car are as follows: Verify vehicle-related documents: Before purchasing, carefully verify whether the vehicle documents are complete, mainly including the vehicle license and vehicle registration certificate, and check whether the document information is consistent with the actual vehicle information. Check for traffic violations: Inquire about the vehicle's status at the traffic police department to see if there are any unprocessed violations, seizures, mortgages, locks, or other abnormal statuses. Conduct a comprehensive vehicle inspection: Both the buyer and seller should take the car to a 4S store for a comprehensive inspection, using a computer decoder to verify whether the internal information of the vehicle matches the actual vehicle information.
I just bought a used car and made sure to confirm that no vehicle purchase tax is required for used cars, as this tax is mainly a one-time levy on new vehicles during registration, and the 10% rate is quite substantial. This amount has already been paid by the previous owner. As a frequent buyer of used cars, I think this saves a significant sum, making it a great deal. However, don’t assume there are no costs at all—you’ll still need to pay other fees during the transfer process, such as a transfer fee, which can range from a few hundred yuan depending on the location. Additionally, if buying from a dealer, their selling price might include value-added tax (VAT), so it’s important to check the contract details. Before purchasing, I recommend thoroughly inspecting the vehicle’s records to check for any accident history or outstanding fees to avoid higher repair costs later. Used cars can be just as reliable, but it’s crucial to buy from trustworthy platforms and not just go for the cheapest option. Overall, the total cost is lower than buying a new car, and you can drive it for several more years before upgrading—perfect for daily commuting.
