Does the down payment for a car include purchase tax and insurance?
3 Answers
Buying a car down payment does not include purchase tax and insurance. The down payment only covers the vehicle's body price, typically ranging from 20% to 50% of the car's total price. Purchase tax and insurance are paid separately. Things to consider when buying a car: 1. Choose the brand and model; 2. Select the price range; 3. Communicate rationally with the salesperson; 4. Choose the configuration; 5. Pay attention to the contract; 6. Check if all relevant car documents are complete; 7. Inspect the car's exterior paint and interior for any damage; 8. Verify that the production date on the vehicle's nameplate matches the relevant documents; 9. Check if the engine is functioning properly and if the basic functions of the vehicle are normal.
As someone who has purchased several cars, I'd like to share some experience with you: The down payment for a car usually only covers a partial payment of the vehicle price, it doesn't include purchase tax and insurance. The purchase tax is a national tax, accounting for about 10% of the car price, which you need to pay separately to the tax bureau or dealer; insurance is also an additional mandatory purchase, like compulsory traffic insurance, with the price depending on the car model. When I bought my first car, I foolishly thought the down payment covered everything, only to find out that taxes and insurance added nearly 20,000 to 30,000 yuan extra, scrambling to gather the money was quite embarrassing. Now when I help friends plan their budgets, I add the down payment, taxes, and insurance together as the total initial expenditure. A little tip: when financing a car, some auto loan plans can include taxes and insurance, but the basic down payment is still just the vehicle price portion. Don't forget miscellaneous fees like license plate registration, asking for a clear list in advance can save a lot of hassle.
Last year I bought my first car and knew nothing about it. I originally thought the down payment covered taxes and insurance, but I was completely wrong! The down payment mainly refers to the initial payment for the car price, while purchase tax and insurance must be paid separately. The purchase tax is calculated as a percentage of the car price and paid upon delivery; insurance also needs to be purchased separately to take effect. The dealer taught me that the down payment for the car price is usually around 20-30%, taxes are calculated separately, and insurance depends on needs. I almost didn't have enough savings, which would have delayed the delivery process. If financing the car, the auto loan might include these additional fees, but the down payment itself mostly refers to the car price portion. Lesson learned: Before buying a car, make a detailed expense list—adding taxes and insurance gives the true down payment. Remember taxes and insurance are fixed costs; plan early to avoid overspending, as the car price doesn't equal the total cost.
