Taxing Things About Owning A Vehicle

Posted on June 15, 2017 by Guy Atkinson

Owning a vehicle is an expensive undertaking. It’s not just about how much you spend to buy your vehicle (you can save money buying a used vehicle, but may spend more on it on repairs than you would have with a new vehicle), but also how much you’ll continue spending on it after you buy it. Vehicle insurance is a cost that continues to come out of your pocket on a monthly basis.

Not only that, but you have the cost of gas (in order to even drive your vehicle), maintenance (to keep it running smoothly and to keep it from breaking down), and repairs (when something does break down). Then, you have taxes.

Paying Taxes On Purchase Price

When you originally buy your vehicle, even if you’re not buying it outright but getting a loan, you have to pay taxes on the full purchase price. That’s a lot of taxes to pay on a car that could cost a few thousand dollars to a many thousands of dollars. And, with a loan payment, you have the added cost of interest rates, which can cause you to pay a lot more for your vehicle than it may have been worth in the first place.

If you need to get a loan to buy your vehicle, find one with good interest rates. You can even try to negotiate rates, as well as vehicle cost.

Retail And Gas Taxes

The taxes keep coming at you every single time you put some gas in your tank. And gas taxes are just one thing when it comes to how annoying this commodity can get. Gas prices fluctuate a lot during the year and sometimes they can get pretty out of control.

Every single thing you buy for your vehicle has taxes on it. You pay taxes if a professional works on your car (as well as some varying amounts to cover labor costs) and you pay taxes on parts you buy to do repairs yourself. The taxes on this stuff depend on the tax rates in your own area.

Saving On Repairs

Just like you pay taxes on the food you get in a restaurant, you pay taxes on your auto repairs as well if it’s a requirement by the government where you live. Since there is no way around needing to pay your taxes on whatever services charge you for them, you can still try to save money on the work you’re getting done.

Get more than one estimate on the repairs you need to get done, especially if it’s a more expensive repair. Shop around for the best deal on cheaper services you need to get done on a regular basis as well. The cost of a $40 oil change can add up over time.

Tip of the Day

Time management for Finance Professionals

time management

 

I’ve just re-read Richard Denny’s fantastic book ‘Selling to Win’, in which he mentions a time management technique that I learnt many, many years ago from an old boss of mine.

(more…)

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