If you are aspiring to make good arrangement to buy or lease a new or second hand car, then you better do your Car calculations prior to making a deal. By this way, when you go to the dealers for purchase of Car; your figures will match to their.
In this regard to provide you help, Edmund’s.com have formulated a potent and supple set of calculators. If you are planning to utilize auto financing, then it carries out the calculations for you. On the contrary, you always don’t have access to your PC or internet, so you want a handy technique to play with the numbers. Below are the details off making several calculations while working out the cost of your Car.
How to Figure Sales Tax
By and large the Car prices are cited without the inclusion of the tax and licensing fees. This additional cost later upset the customer maliciously. It is therefore, advised to take a bit more time for the calculations of such costs before approaching the dealer.
If you are contemplating to purchase a car for $20,000, you must have a thorough knowledge about the related costs. Don’t forget to include the destination fee. All of the carry s destination fees of $300 to $600.
After determining the total till now, check what is sales tax in your state? If it is 8%, then change it to a decimal number by adding zero in front of the number. Hence, 8 percent will become 0.08. Now make use of the formula given below:
Cost of the Car + options + destination fee X sales tax
In the aforementioned example, let’s assume that the Car price is $20,000 and the options total is $600. The destination fee is $495.
$20,000 + $600 + $495 = $21,095
To get the sales tax, multiply this by .08:
$21,095 X .08 = $1,687.60
By adding it to the cost of the Car made so far, we reach at the grand total of $22,782.60.
Owning a vehicle is expensive from the day you purchase it until the day you quit driving it. Unfortunately, when you purchase a vehicle, you’re paying for much more than just the vehicle itself. In addition to your down payment and monthly payments, you’ll need to budget for dealer fees, registration fees, gas, Insurance, and sales tax. Some states are better to buy cars in than others due to lower initial costs, less unexpected fees, and lower CarInsurance premiums.
Sales tax is charged on Car purchases in most states in the U.S. While you may be used to paying sales tax for most of your purchases, the bill for sales tax on a vehicle can be shocking. If, for example, you pay a 10% sales tax on $20,000, that’s an additional $2,000 you must spend – not counting doc fees and DMV fees.
Luckily, some states are more relaxed on their minimum sales tax requirements, and a handful don’t charge sales tax at all. Delaware, Montana, New Hampshire, and Oregon do not levy sales tax on cars.
Unfortunately, if you live close to a state with a lower or no Car sales tax, such as if you live near Delaware, you cannot buy a Car in that state to avoid sales tax. You must pay the sales tax rate of the state the Car will be registered in, which is the state you reside in.
Here are the 10 states with the highest Car sales tax: