Income tax on car purchases – Car Loan
Buying a car not only has to pay the price of the car, but there are also a number of costs, whether you are buying a new or used car. One of these mandatory expenses is the property tax , details of which are collected in this article.
When should I pay the property tax?
A property tax is required by law if:
- acquiring property or usufruct rights in real estate,
- we sell a real estate and therefore gain wealth,
- movable property at the official auction,
- acquisition of ownership of a motor vehicle – also applies to a trailer,
- we inherited a security,
- we acquire ownership of a superstructure that is not in the public domain,
- we acquire a property deposit in a company with domestic real estate assets.
The obligation to pay the duty also applies to the purchase of a new and used car, and it does not matter whether we bought the car at home or imported it from abroad.
There is one exception, when you do not have to pay the wealth tax: when you are transcribing a car between straight relatives.
What determines how much tax should be paid?
How much you pay depends on the age and performance of the car you buy. Here are some examples:
New car for 7 people
If your dream car is a 7-person Skoda Kodiaq with 179 horsepower and 1,984 cubic centimeters of displacement, the property tax is $ 112,200.
Used car, under 5 years old
If a two-year-old (2017) Nissan Quashqai is the car of choice, which is 116 hp and has a displacement of 1,197 cubic meters, the payable property tax is $ 63,750. This amount must be paid before the transfer, at the territorially competent government window.
Used car, 5-10 years old
Let’s say we want to buy a 2012 Opel Astra that is 116 hp and has a displacement of 1,598 cubic centimeters. This car will be subject to a $ 55,250 property tax.
Used car, over 10 years old
If the car you choose is a 2005 Renault Thalia (75 hp and 1390 cc), then the fee will be £ 24,750.
We can see that the younger the car is, the deeper you have to go into your pocket when buying a car. Keep in mind that there are additional costs if you switch to a (new) four wheeler: you have to pay for the rewrite and the registration certificate.
In addition, the car needs to be maintained, including fuel and insurance charges, compulsory tax charges, and any service charge and technical test fee that may be incurred.
These are the best car loan deals on the market
If you need external financial help to buy a car, a free personal loan may be a good option as you can get a loan without having to use the car as collateral. We looked at the Mon Sturf car loan calculator to find out which bank offers the best terms for raising $ 3 million over a 60-month term.
According to the calculator, Sharebank and Mon Sturf have a joint bid of 7.65 percent, with a monthly installment of $ 59,493 and a full repayment of $ 3,619,851.
Cudapest Bank also offers favorable free-of-charge loans. For Premium 400 loans, the APR is 7.90 percent, the monthly installment is HUF 60,340 and the total repayment amount is HUF 3,620,400. In order to take advantage of this offer, you must have a minimum monthly income of $ 200,000.
Benefits of a Free-to-Use Personal Loan
One of the biggest benefits of free-to-use personal loans is that you can get it easily. Applying doesn’t take much of your time, you can even go online at many banks without having to leave home. If you are lucky, you can have the credit applied for in your bank account within one day.