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?
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?
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.
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.
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.