November 23, 2014

What is the one-time registration cost when you register a vehicle for the first time in the state of Iowa? Why should you care?

3 thoughts on “November 23, 2014”

  1. Brennan Haag says:

    The one time fee in Iowa is the registration fee. You should care because you should factor it in when you buy a car. What you think you might be paying for a car might be ring and you might not have enough money set aside.

  2. Garrett Haag says:

    You will pay 6% when you first register your new vehicle due to the Use Tax. Thats 5% of the value of the vehicle and 1% extra per year for a new car or .75% a year for a little older of a car. You need to care about this because you will pay this when you buy a new car and need to play that in. You will need a good amount of cash on hand when you go to the court house to register the first time.

  3. Mike Finley says:

    Garrett really nailed the details. Let’s review.

    In the state of Iowa you will pay 5% in a 1 time registration fee when you buy a vehicle. Think of this as a sales tax, which is what you will pay in other states. The point here is that you will pay a large one time payment when you make that initial purchase. 5% of a $30,000 car is $1,500. Add the new car registration (1%) and you end up with $1,800. Tack on the plate and a few small admin costs and the first year registration could be very close to $2,000. You MUST consider this prior to making a car purchase.

    How to reduce this cost? Buy vehicles less often. The fewer times you go through the process, the fewer times you will pay this one-time cost when registering your new or used vehicle. Less is more in this situation. Less is more.

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