Car shopping

[Michelangelo]

Good to know....I like your new greeting.... nice spy :-)

[Stirlitz]

Guys, I’ve been told that it is difficult to have an oldtimer in the US because of considerably higher taxes and that is why there are very few classic cars on the streets and highways. Is that true?

[Turboguy]

I would say no to that Stirlitz.   It can vary from state to state but where I am it is quite easy to have an old car if you can find one.   We don't pay taxes on the value of a car.  We only have a registration fee which is the same for any car and insurance which could be high on a classic car that is worth a lot of money.

I think one of the issues is that when cars are on the road here they get driven a lot and may get well worn out long before they reach the classic stage.  We also have a tendency to junk cars when they get worn out and they are stripped of any saleable parts and then squashed and melted down. 

I probably would not agree with us not having oldtimer cars.  In the summer we have what we call car cruises all over the place.  Beaver Falls with a population of 30,000 people has 2500 cars in their "Happy Days" car cruise in June mostly dating from the 1950's   I believe it was KenC who talked about one in Detroit that has something like 35,000 old, refurbished cars.   I wish I had some of the cars I used to own like my '57 Chevy.

[jinx13]

 Stirlitz,

 Turbo is right, we don't pay taxes, just registration fees, which for my old timer car is very low, $70 a year I think.

[BillyB]

Guys, I’ve been told that it is difficult to have an oldtimer in the US because of considerably higher taxes and that is why there are very few classic cars on the streets and highways. Is that true?

I have a 1923 T-Bucket which is a Ford model T that's been hot rod'd. In my State, I paid for registration and normal sales tax one time. I don't need to pay taxes or license ever again unless the law changes.

[Stirlitz]

Thanks. So, it was misinformation. It’s good that you can always find out first hand.

[TwoBitBandit]

Thanks. So, it was misinformation. It’s good that you can always find out first hand.

You have to realize that all of this is regulated by individual states.  There are fifty states, and each one has different rules and taxes for vehicle licensing.

In my state (California), the annual tax is based on the value of the car.  I pay about $300 a year, but when I had a very old car (a 1974 Porsche 911), the tax was about $80 a year.  $80 a year is about the lowest you can pay.

[Stirlitz]

So, it can actually be cheap rather than expensive.

[BillyB]

So, it can actually be cheap rather than expensive.

If a guy has regular license plates on his antique car, he has to pay tax according to value in any State, and the tax could be more expensive if the car is worth more than a new car. But in my State among most others, once a car reaches a certain age, it is eligible for collectors or antique car plates and once the owner obtains these plates, the owner never need to pay tax again. I suspect twobitbandit had regular plates on his auto thus requiring him to pay tax on a yearly basis. Age of a car alone doesn't give it a free pass from paying tax.

[Turboguy]

Billy, that is not true of "Any" state.   At least as far as the registration changing on value.  PA and many other states have a flat fee.   It costs someone here the same to register a junker as it does a new Rolls Royce, or any other car.   We do have Antique plates for cars over 25 years old.  I don't think it absolves them from registration but does get them a pass on the annual inspection requirements new cars must meet.

Ohio I believe has personal property tax and you could probably have to pay on the value of it even if you didn't register it but I am guessing about that.  The states all set their own laws about vehicles and the taxes and treatment of antique cars are not uniform across the country.

[BillyB]

TG, I understand registration for some states is a flat fee or based on value. I was thinking sales tax when I was talking registration. My mistake. Sales tax is based on value of the car in all states but not registration.

[Turboguy]

Very true, but again there are a few states such as New Hampshrire with no sales tax.   Yes, I think we are on the same track now.

[BillyB]

Very true, but again there are a few states such as New Hampshrire with no sales tax.   Yes, I think we are on the same track now.

Oregon has no sales tax either but it's usually incorporated in the price for the buyer if the seller pays the tax.

[Turboguy]

I don't understand that one Billy.  If there is no tax then why does either need to pay it?  I am sure there is something i am missing Billy.

[BillyB]

I don't understand that one Billy.  If there is no tax then why does either need to pay it?  I am sure there is something i am missing Billy.

If you buy a Big Mac in Washington State, the buyer willl pay sales tax on it. In Oregon, the buyer will not pay sales tax but the Big Mac cost more meaning the tax will be paid by McDonalds. McDonalds will not eat the cost in Oregon thus passing the cost on to the buyer through higher prices. The government will not allow the exchange of goods without getting their cut in some fashion or another.

Another way to look at it is when you buy gas. You may think you don't pay sales tax but there is plenty of tax already included in the price.

[Turboguy]

So unlike NH which really does have no sales tax you have a sales tax paid by the seller but not the buyer.  Ok, now I got it.