Things You Should Know About Used Car Taxes

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Did you know? Used cars are also subject to taxes.

Many people may not realize that when buying a used car, you also need to consider the tax that comes with it.

Due to the current economic situation, many opt to buy used cars instead of new ones, as they are more affordable and come with many options. However, don’t forget to think about the taxes on used cars.

When you decide to purchase a used car, you’ll have to pay a 7% value-added tax (VAT) on the car’s net price.

Additionally, whether it's a new or used car, you must renew the annual car tax. If your used car is more than 7 years old, you’ll need to get it inspected at an authorized inspection center before the information is uploaded into the system, allowing you to proceed with the car tax payment.

Nowadays, you can pay your car tax online through various channels, including:

• The Department of Land Transport website
• The DLT Vehicle Tax app
• Counter services
• The mPay app
• True Money Wallet

If you’re looking to buy a used car, contact Motorist. We guarantee all cars are carefully selected by experts, ensuring quality with every purchase.

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