What are the additional costs after purchasing a car?
2 Answers
After purchasing a car, additional costs include purchase tax, insurance fees, and license plate registration fees. Purchase Tax: It is 10% of the car's ex-factory price, but some cars may have a purchase tax rate of only 5%. Different engine displacement models may also have varying purchase tax rates. Insurance Fees: Required insurances include compulsory traffic insurance, vehicle damage insurance, third-party liability insurance, passenger liability insurance, and no-deductible insurance. License Plate Registration Fees: Fees incurred during the license plate registration process. Purpose of Insurances: Compulsory traffic insurance is primarily designed to protect the rights of victims in traffic accidents and is mandatory by the state; vehicle damage insurance mainly compensates for the loss of the vehicle in traffic accidents; third-party liability insurance primarily covers bodily death and property loss of third parties in traffic accidents; passenger liability insurance mainly safeguards the bodily injuries of passengers and the driver in the vehicle; no-deductible insurance ensures that the insurance company covers the compensation costs the car owner would otherwise have to pay in traffic accidents.
After buying a car, I still need to prepare for a series of follow-up expenses. The purchase tax is the primary one, usually 10% of the car price, and must be paid in full when registering the vehicle. Compulsory traffic insurance is a must every year, with a fixed cost of a few hundred yuan—not having it is illegal. The vehicle and vessel tax is charged based on engine displacement, costing a few hundred yuan annually. Commercial insurance is recommended, including third-party liability insurance and vehicle damage insurance, costing a few thousand yuan annually for peace of mind. Regular inspection fees are necessary—new cars require inspection every two years for the first six years, then annually thereafter, costing a few hundred yuan each time to avoid fines. Maintenance is essential, with oil and filter changes every 5,000 or 10,000 kilometers costing a few hundred yuan, and tire and brake checks cannot be skipped. Add daily parking, fuel, tolls, and other expenses—planning these costs ensures worry-free driving. In short, buying a car is just the beginning; ongoing expenses require continuous and prudent planning.
