Andy Mohr Automotive

Taxes and Fees When Buying a Used Car

Taxes and Fees


When you shop for a vehicle, there are fees to consider throughout the buying process. While some— such as extended warranties—are optional, other fees—including taxes—are applied automatically as you buy.

To help Indianapolis, Plainfield, and Bloomington, Indiana, drivers know what to expect with their taxes and fees when buying a used car, we’ve developed this guide. Let our Andy Mohr Automotive team help drivers like you remain informed when purchasing your next vehicle.


What Fees Should You Consider When Buying a Used Car?

Every used car for sale features a set price associated with the vehicle's value, called the “sticker price.” In addition to this, though, there are various fees associated with processing your purchase, such as:

  • Sales tax
  • Title fees
  • Registration fees

First is sales tax, which changes from state to state but is tied specifically to your residence. Here in The Hoosier State, the sales tax is about 7% on your purchase. So, when buying a car, it’s good to consider that rate when finding a used car that fits your budget.

Other fees involved when buying your used car are title and registration fees. You pay these fees to have your vehicle’s paperwork processed, and they should also include a basic license for your car.

How to Account for Taxes and Fees When Buying a Used Car

One of the best ways to account for taxes and fees when buying a used car is to consider the amount of your down payment. This is money you pay in cash at the point of sale; in many cases, you’re expected to put some money down.

In general, it’s advised that you give around 10% and up to 20% of the car’s value as a down payment. This amount should cover you for all your taxes, fees, and then some, making sure you pay close to the sticker price.

Putting down a payment in this range will help you down the road. After all, it can help you plan your upcoming payments better. Leaving taxes and fees attached to your auto loan might lead to higher monthly payments than initially calculated.

If you have any questions about how to handle your taxes and fees best, be sure to contact our finance team.

Where Can I Get Started on My Financing Journey?

Buying a pre-owned vehicle is an exciting experience, and planning out your finances is a significant part of it. Fortunately, our team is here to help drivers create auto loans through our available lenders that fit their needs.

We can help you plan your finances using our online payment calculator. If you want to take home a used car from our lot, explore our website and fill out our pre-approval form today. Let us help you confidently begin a purchase.

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Finance Your Next Used Car at Our Dealership

At Andy Mohr Automotive, we want to help drivers near Indianapolis, Plainfield, and Bloomington, IN, learn about taxes and fees when buying a used car.

Contact our team today to learn more!

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