What Fees Need to Be Paid When Buying a Car?
4 Answers
When buying a car, you need to pay the ex-factory price, insurance fees, purchase tax, etc. Below is a detailed introduction to the fees required for purchasing a car: 1. Included: The ex-factory price, insurance fees, purchase tax, etc. 2. Taxation: Taxpayers purchasing taxable vehicles for personal use must declare and pay taxes within 60 days from the date of purchase. For imported taxable vehicles for personal use, taxes must be declared and paid within 60 days from the date of import. For self-produced, gifted, awarded, or otherwise acquired taxable vehicles for personal use, taxes must be declared and paid within 60 days from the date of acquisition. The vehicle purchase tax must be paid in full at one time.
I've bought cars several times, and the expenses are really substantial. Let's start with the major costs—the price of the car itself is the most significant, accounting for the largest portion. Then there's the purchase tax, which is roughly 10% of the car's price, collected by the government and unavoidable. Insurance is mandatory—compulsory traffic insurance is required by law, and I also opt for commercial insurance like third-party liability to protect myself. License plate fees vary by location, ranging from 500 to 1,000 in big cities. If you use a loan, the bank charges a handling fee, sometimes several thousand yuan. Don’t forget that dealerships often push add-ons like window tinting or floor mats, which add extra costs and can easily exceed your budget. Overall, you should realistically add 20-25% to the car's price—consult experienced drivers to avoid pitfalls. It’s also wise to set aside some maintenance funds in advance, as even new cars require timely upkeep for peace of mind while driving.
As a first-time car buyer, I was initially drawn to the sticker price, only to later discover a pile of taxes and fees. The purchase tax is calculated at 10% of the buying price, surprisingly high. Insurance is divided into compulsory traffic insurance, which is mandatory, and commercial insurance, for which I opted for comprehensive coverage against accidents. Registering the car at the DMV cost a few hundred. The service fee added when taking out a loan was quite annoying. Extra costs like installing a navigation system popped up, quickly blowing the budget. I recommend calculating the total cost in advance and not impulsively focusing only on the base price. Searching for guides online or asking friends for advice can help; adding a 15-20% buffer to your budget is wise. New car owners, beware: don’t overlook these hidden costs, and keeping a record of expenses can save you a lot of hassle.
Core car purchase expenses: The base price is the starting point. Purchase tax accounts for about 10% and is mandatory. Insurance includes compulsory traffic insurance at minimum, with optional commercial insurance. License plate fees typically cost a few hundred yuan. Financing incurs financial service fees. Additional costs like seat covers may apply. I always emphasize not underestimating taxes and insurance—they affect road legality. With careful budgeting, expect to add 18-22% to the car price. New buyers should itemize costs to avoid omissions.
