What Fees Are Required When Buying a Car?

[BrookeAnn]

Buying a car involves the following expenses: the base car price, additional installation costs, compulsory traffic insurance, commercial insurance, purchase tax, and license plate fees. Here is a partial introduction to the fees required when buying a car: 1. Base Car Price: The car price is the largest part of the expense when buying a car. However, in reality, many 4S dealerships negotiate a bundled price. For example, if the car price is 150,000 yuan, they may include the purchase tax, vehicle and vessel tax, insurance, and license plate fees in the total, and may even include additional installations such as a navigation system. 2. Purchase Tax: The purchase tax is relatively straightforward: car price * 10% / 1.17. Why divide by 1.17? Because it includes value-added tax. Overall, it amounts to roughly less than 10% of the car price. This is unrelated to the car's displacement. 3. Vehicle and Vessel Tax: The vehicle and vessel tax is directly linked to the car's displacement. For large-displacement cars, the annual tax can be 4,500 yuan, while for small-displacement cars, it may only be a few hundred yuan per year.