What taxes and fees do I need to pay when buying a used car? How to calculate old car registration tax? How much does it cost to change car name?
For a buyer of a used car, in order for the car to roll legally on the road, except for the purchase of a car, the owner also needs to pay the following taxes:
- Registration tax
- Name change fee, license plate change
- Registration fee
- Road maintenance fees
- Compulsory Civil Liability Insurance premium
- Vehicle insurance premium (voluntary)
However, usually fees such as registration fee, road maintenance fee, compulsory civil liability insurance premium, fee car insurrance… has been paid by the old car owner (the seller), so the buyer does not need to pay extra when buying.
Old car registration tax
Many people wonder if buying a used car has to pay registration tax, the answer is yes. This is a required tax on used cars.
To pay registration tax, the owner of the car needs to prepare a complete application for registration of the old car and pay the tax at the local tax authority where the owner has a permanent residence or online.
- How to pay the price when buying a used car
The method of calculating the registration tax for used cars is: New car value x Current old car value ratio x Fee 2%
In which, the percentage of old car at the present time is calculated as follows:
- Vehicles used 1 year: 90%
- Vehicles used 1 – 3 years: 70%
- Vehicles used for 3 – 6 years: 50%
- Vehicles used for 6 – 10 years: 30%
- Vehicles used for more than 10 years: 20%
Example: 2016 Kia Cerato 1.6 AT car has a new purchase price of 679,000,000 VND. After 5 years of use, the value of the car will be 50%. Thus, the old car registration fee will be: 679,000,000 x 50% x 2% = VND 6,790,000.
Name change fee, car number plate change
As a rule, if the car changes its owner within the same province, it will be issued with a new vehicle registration certificate that is inferior to the license plate (if required) with unchanged content (except for the case of license plate 3 numbers, 4 numbers or different marine system). If the name is changed to a different province owner, a new vehicle registration certificate will be issued and a new license plate will be changed.
Fee to change car owner:
- In case of re-issuance of registration paper with number plate: 150,000 VND / time / vehicle
- In case of re-issuance of a registration certificate without license plate: VND 30,000 / time / vehicle
Costs of buying other used cars
Fees for buying used cars are few and not as complicated as buying a new car. As with an old car, the owner does not have to register and pay the first registration fee, no road maintenance fee, no car insurance (compulsory civil liability insurance or material insurance. )… Because the old car owner (the seller) has fulfilled these fees.
Although there is no need to pay at the time of buying a car, the above fees are included in the categories the cost of raising a car. If the vehicle is due for registration, the owner will have to take the car for inspection, pay the registration fee of 340,000 VND / time (cars with less than 10 seats) and road maintenance fee is 130,000 VND / month.
In addition, when the compulsory civil liability insurance expires, the car owner must also buy a new one at the price of:
- Cars with under 6 seats: 437,000 VND / year
- Car from 6 – 11 seats: 794,000 VND / year
- Vehicles with under 6 seats for transport business: 756,000 VND / year
- 6-seater vehicle for transport business: 929,000 VND / year
- 7-seater vehicle for transport business: 1,080,000 VND / year
- 8-seater vehicle for transport business: 1,253,000 VND / year
The same goes for physical insurance. The cost of the material insurance will depend on the amount insured, the length of time the vehicle is used and the type of vehicle. The average price of material insurance fluctuates from 5 to 30 million VND / year.
Frequently asked questions about taxes and fees when buying used cars
? What tax is required to buy a used car?
Reply: Buying a used car must pay registration tax and license plate change fee.
? Buying a used car must pay registration tax?
Reply: Buy a used car must close the registration. However, the method of calculating registration tax for old cars is different from that of new cars. Specifically, the old car registration tax is only 2% of the value of the car at the moment.
? Can I buy a used car and change the license plate?
Reply: Buying a used car can be variable if it is bought and sold in a different province.
? Fee for changing car number plates from different provinces?
Answer: The fee for reissuance of the registration certificate with the license plate is 150,000 VND / time / vehicle, the fee for re-issuance of the registration certificate without the license plate is 30,000 VND / time / vehicle.