Buying a used car comes with advantages like lower auto insurance rates, a more affordable price, and free installed equipment. Anyway, when planning a purchase, do not forget to calculate extra costs, like insurance and tax fees. Today, we prepared an overview of the fees in Indiana state that will apply to your purchase.
Each pre-owned car on the market has an initial price, commonly referred to as the "sticker price." However, beyond this cost, you will have to pay several additional fees associated with finalizing your purchase, including:
Note: While trade-in or dealer discounts are subtracted from the sales price, manufacturer discounts are not considered when calculating taxes.
If you buy a used car for commercial purposes, you may get a tax deduction.
You may also get a tax credit if you buy a used electric car from an Indiana dealership.
A practical approach to factoring in taxes and fees when buying a used car in Indiana involves considering your initial down payment. This is the cash amount you pay at the time of purchase, often requiring a specific sum upfront.
As a general guideline, we recommend allocating approximately 10% to 20% of the car's value as a down payment. This sum should encompass all taxes, fees, and additional expenses, ensuring you stay close to the advertised price.
Providing a down payment within this range can yield long-term benefits. It assists in better planning for future payments, as neglecting to include taxes and fees in your auto loan may result in higher monthly payments than initially anticipated.
For any inquiries regarding the optimal management of taxes and fees, please do not hesitate to reach out to our finance team.