What Costs Are Included in Vehicle Expenses?
2 Answers
In addition to the vehicle price, the costs that need to be paid when purchasing a car include: vehicle purchase tax, vehicle and vessel usage tax (varies by region), compulsory traffic insurance, commercial insurance (optional based on personal needs), and license plate registration fee (varies by region). Below is a detailed introduction: 1. Vehicle Purchase Tax: This is a tax levied on units and individuals purchasing specified vehicles within the country, determined by the vehicle's ex-factory price and engine displacement. The latest policy sets the vehicle purchase tax at 10%. 2. Insurance Costs: This includes compulsory traffic insurance and commercial insurance. Compulsory traffic insurance is mandatory, with a nationally unified fee standard, though the number of car seats can affect the amount. Commercial insurance can be purchased voluntarily, with prices varying. 3. License Plate Registration Fee: After completing insurance and tax payments, you need to take these documents to the vehicle management office for registration, i.e., obtaining a license plate. Only after receiving the vehicle registration certificate and license plate does the car fully belong to you. If you handle the registration yourself, the process can be complex and tedious; if you don't have time, you can opt for a 4S store to handle it, though the fee will be relatively higher. 4. Vehicle and Vessel Tax: This is a behavioral tax levied on vehicles driving on public roads and vessels sailing in domestic rivers, lakes, or territorial ports, calculated based on their type, tonnage, and stipulated tax rates. As a local tax, the vehicle and vessel tax varies by region, with fees categorized by engine displacement.
I think vehicle expenses can be mainly divided into three categories: purchase cost, usage cost, and ownership cost. Upfront expenses like cash payment, taxes, and registration fees during purchase are unavoidable from the start. Then come the monthly usage expenses - fuel is one of my biggest expenditures since I frequently go on road trips, burning over a thousand yuan each month. There are also toll fees for highways or bridges/tunnels; insurance is paid annually but feels like a monthly burden; parking fees at office areas or shopping malls are additional out-of-pocket expenses. Ownership costs include fixed items like vehicle tax and annual inspection fees; maintenance comes periodically, such as minor repairs every six months; unexpected repair costs like flat tires or accidents always require some precaution. Overall, looking at the complete picture, the expense chain is quite long, and planning ahead can save a lot of hassle.
