What are the costs involved in buying a car and how are they calculated?
1 Answers
Buying a car involves the following costs: Purchase tax: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within the country, evolving from the vehicle purchase surcharge. The vehicle purchase tax rate is 10%. License plate fee: A uniformly regulated national fee. Vehicle and vessel usage tax: The amount varies slightly across different regions in the country, but the tax amount is generally fixed. Insurance: Motor vehicle insurance typically includes compulsory traffic insurance and commercial insurance. Commercial insurance consists of basic insurance and additional insurance. Basic insurance is divided into vehicle damage insurance, third-party liability insurance, total vehicle theft insurance (theft insurance), and passenger liability insurance (driver liability insurance and passenger liability insurance). The compulsory traffic insurance tax is fixed nationwide, while commercial insurance rates vary slightly among different insurance companies.