I got a new "winter" car and I am selling my pickup truck. Before you yuck or why, understand I got a new car a check of $5115.71 $9995 retail, $9630 no haggle price, $2000 off from Chevy (for one week only), $3137.07 in GM card savings, $111.50 in registration fees, and tax on the FULL $9630 (the government SUCKS IT).

My first "management" class I took through work, the teacher showed us a picture of a house. Kind of small. Kind of old. Kind of in a run down neighborhood. First he asked us (about 15 people), "who would buy this house?" Everyone said not me. Then he asked who would buy this house for $50k, some raised their hands, once he got to $30k everyone said, yeah I would buy that. That is the same with this car, it will be much cheaper to operate than my truck, has a 3 year warrenty and 5 years on the drive train, and I got it for less than the value of my truck.

Yes that is my house in the background.








5 Megapixel Photo Album

 

Hydn, I didn't quite follow your math. Are you saying you paid $5115 for this car? If so, WOW!

 

Indeed, that's pretty impressive! I wonder, does that mean that now that you drove it off the lot, it's worth 3000?

 

Not in the Commonwealth of Virginia when it comes to Personal Property Tax one pays 4.56% of the Blue Book value here in Fairfax County.

 

Yeah, sales tax is 5% up here in MA, Matt, and it's way higher in NY (8%, I think, maybe higher). 4.56% doesn't sound too bad to me... I really would've guessed it'd be higher for you.

 

Matt,

That's an annual fee, isn't it? My understanding is that you have to pay the 4.56% of Blue Book Value every year for the life of the vehicle.

 

Chaz,

Unfortunately Rob is correct. When one buys a car in VA the Registration Tax is a 3% one time charge. But the Personal Property Tax is assessed by the county that one lives in. In Fairfax County it is based on 4.56% of the Blue Book Value of the vehicle every year for the "pleasure" of owning it. Year after year. Yes, this also includes leased vehicles. Most leases do not include the Personal Property tax in them.

A friend of ours use to date a female that worked for a local credit union. She spent most of her days on the phone with irrate customers that got "sucked into" an attractive monthly lease rate on a high end vehicle and go into shock when the county mails them their personal property tax bill in the fall. Do the math: That is a tax bill of $2280 on a $50,000 car. Lets assume that it depreciates $10,000 per year over five years (not likely), that adds another $6840 to the cost of ownership.

 

The sad part about it is that you also pay an income tax in Virginia. I believe you also pay real estate tax. The personal property tax wouldn't be so bad if it was in lieu of one of the other taxes, but it's in addition to the other taxes.

I imagine the situation that you describe, the personal property tax bill on a leased vehicle, must come as quite a shock to many people. Especially now with the MSRP of cars being so high.

 

Yes. I wrote a check for $5115.71.

In Wisconsin you pay 5% and some counties collect 0.5% such as the one I am in. Unfortunately, they take the tax on $9630 and not the $4450. Also means I spent $62k on my credit card in the last 6 years, the worst part being that I only buy stuff that is over $50 on it (or internet), so that never included gas, food, nor restaurants (I know I am cheap).

Wisconsin also has very low yearly licensing fees. I think it is $45 for a car and $75 for a pickup truck, regardless of vehicle value. I know in MN, the yearly fee is based on car value.

 

Yes, my friend, Wisconsin has one of the highest tax burdens in the U.S., right behind New York state.

We have it all. High personal income tax, high property taxes (like $4500 on $200,000 value where I live), high gas tax, and a middle sales tax (5%-5.5%).

As the people of Chicago treat us, "Nice place to visit, but I wouldn't want to live there".