Recurring Registration Fees and EAP/FSD Purchase Bundling

[SSonnentag]

I don't know about other states/areas, but here in Arizona I just discovered that the yearly registration fee is based upon the purchase price of the vehicle. So if you buy the car with either EAP or FSD, you'll end up paying more every year for registration. If you buy the software after the purchase, you will avoid the additional fees. This adds up to a little over $500 over 10 years for EAP or more than $1,000 for FSD.

Just an FYI for anyone looking at bundling the software purchase.

 

[Goobers]

That seems rather unreasonable.

So, if someone manages to get $1 million car for a $0 purchase price (it was a “gift”), then they pay zero on registration fees?

Many states say the reg fees are for road maintenance. A higher cost car doesn’t wear down the road (significantly) more than an old junker. Heck, it could be the opposite.

In Illinois, the reg is mostly flat, one for ICE another, higher one for EV (since EVs don’t pay tax on gasoline). Probably not the fairest, but better than paying on purchase price.

 

[BillRadio]

Colorado has the same fees. The amount is an "ownership" tax that is charged in addition to the registration charges, and the fee drops each year for 7 years. It is one of the reasons why I was encouraged to upgrade to a Model Y. With the new lower price for the Y, the ownership fee is now much lower than it was on my older Model 3 meaning I will have lower taxes for the next 6 years.

Yes, get the add-ons after the purchase.

 

[ucmndd]

That seems rather unreasonable.

Yet it’s true all the same. One of many examples of a progressive tax.

So, if someone manages to get $1 million car for a $0 purchase price (it was a “gift”), then they pay zero on registration fees?

No. In California at least the Vehicle License Fee is based on the fair market value of the car. Most of the time that means they start at the transaction price and depreciate it by a standard amount every year. However, if you get the car as a “gift” or have a bill of sale written with some obviously BS below market number, they reserve the right to calculate the market value for you. Helpful public servants that they are.

 

[Kairide]

It’s similar to buying a new construction house, at least in CA. Since your property tax is based on the purchase price, you shouldn’t do expensive builder upgrades or pay extra for appliances. You’ll be paying extra in property taxes on those for the entire time you own the house.