Is the vehicle purchase tax paid by oneself when buying a car in installments?
3 Answers
Is the vehicle purchase tax paid by oneself when buying a car in installments. Introduction: The vehicle purchase tax invoice serves as proof of payment for the vehicle purchase tax. When purchasing a motor vehicle, it is necessary to obtain a unified motor vehicle sales invoice, the third copy of which is the tax declaration copy, retained by the tax bureau when paying the vehicle purchase tax. Payment: The vehicle purchase tax is paid at the relevant counter of the national tax bureau. Generally, you can find the vehicle purchase tax payment counter at the local administrative service center. To pay the vehicle purchase tax, you need to bring the original and a copy of the third copy (tax declaration copy) of the new car invoice, the original and a copy of the owner's ID card, and the original and a copy of the vehicle qualification certificate.
I just bought a car on installment, and I remember clearly that the purchase tax indeed has to be paid out of my own pocket. This tax is calculated based on the transaction price of the car, roughly around 10%. Whether you pay in installments or full amount, this tax must be paid in one lump sum before completing the car purchase procedures. Last time, I bought an SUV with a 36-month repayment plan, and the tax alone was nearly 20,000 RMB. The bank doesn’t cover this cost—I had to transfer it separately to the 4S dealership when picking up the car. To avoid last-minute chaos, I checked my budget in advance and realized that the total cost—principal plus interest plus tax—wasn’t cheap at all. Later, I figured out that one way to save a bit is to find a reliable 4S dealership, as they sometimes offer discounts on the tax or help with the paperwork, though the main responsibility still falls on you. In short, preparing this amount in advance is crucial—don’t let loan pressure blind you and affect your overall living expenses.
When buying a car on installment, the purchase tax is definitely the buyer's responsibility—don't expect anyone to front the cost. As a financial planner who handles numerous car purchase cases, I've seen people mistakenly assume the monthly payments include taxes, only to face a cash crunch at the last moment. This tax, essentially collected by the state, is calculated based on the vehicle price and often amounts to thousands or even tens of thousands. During the transaction, you must first pay the tax at the tax bureau or delegate the 4S store to do so before obtaining the license plate and taking delivery. I recommend clarifying how the tax is calculated when signing the installment contract—banks only handle the car payment installments; the tax is an additional expense. Proper fund allocation is crucial. For instance, if you opt for a five-year repayment plan, settle the tax in one go to avoid squeezing other expenses. Also, remember: higher car prices mean heavier tax burdens. Act within your means, and always prepare a detailed cost breakdown before purchasing to maintain full financial control.
