What Costs Are Involved When Buying a Car?
2 Answers
Costs involved when buying a car: vehicle cost, vehicle purchase tax, vehicle and vessel tax, vehicle insurance, license plate fees, and other insurance. Details are as follows: 1. Vehicle Purchase Tax: The purchase tax is a tax levied by tax authorities on the purchase of certain goods and properties within the scope of the tax system. The vehicle purchase tax is a tax imposed on units and individuals who purchase specified vehicles within China, evolving from the vehicle purchase surcharge. 2. Vehicle and Vessel Tax: The vehicle and vessel tax is also a mandatory fee, with varying standards depending on the region. 3. Vehicle Insurance (Compulsory Traffic Insurance): Compulsory traffic insurance is mandatory by the state. Costs vary by vehicle type. First year: 5-seater 950 yuan, 6-8 seater 1100 yuan; Second year: 855 yuan, 990 yuan; Third year: 760 yuan, 880 yuan; Fourth year: 665 yuan, 770 yuan; Fifth year: 665 yuan, 770 yuan. 4. License Plate Fees: These also vary by region, generally around 400-500 yuan. 5. Other Insurance: Besides the compulsory traffic insurance mentioned above, some car owners opt for additional commercial insurance, including third-party liability insurance, vehicle damage insurance, theft insurance, scratch insurance, water damage insurance, etc.
When buying a car, I have to spend a large sum of money, mainly on the car price itself, which is the base price that can be negotiated down. Then there's the purchase tax, which is set by the government at 10% of the car price, and it applies to both new and used cars. Insurance is also mandatory, with compulsory traffic insurance being a must, and commercial insurance like vehicle damage insurance and third-party liability insurance are highly recommended, adding up to several thousand yuan. The registration fee is paid to the vehicle management office, covering the license plate and registration costs, usually a few hundred yuan. If buying on loan, the bank will charge interest and handling fees, significantly increasing the total cost. I also spent about a thousand yuan on accessories like window tinting and floor mats. In short, the total cost is much higher than the car price, so it's important to budget in advance and not let the salesperson trick you into spending more. Opting for a loan or installment plan can offer more flexibility.
