Used Car Taxes and Fees
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To prevent any surprise fees when budgeting for a used vehicle you must acknowledge all real and potential costs. In addition to insurance, registration and maintenance, this also includes used car fees and taxes.
Because they vary by state, used car fees and taxes are easy to overlook, creating unwanted budget bombshells for unsuspecting buyers. This, for example, is especially true in North Carolina, which charges an annual property tax on all vehicles.
To avoid surprises in the final cost, calculate your used car sales tax before signing your name to a car deal. This will provide you with a concise cost estimate, allowing you to clearly determine if your targeted vehicle fits your budget. Plus, knowing your estimated cost will help alert you to any possible hidden, last-second fees thrown in by the seller.
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