Any advice for a new resident buying a used car in Arizona/the valley? (DMV, taxes)

[yukon]

Sort of related question - when you buy a used car, does AZ use the purchase price as the value to determine the license tag fee? Or do they use the original value of the vehicle when new?

[las vegas drunk]

Originally Posted by observer53

The emissions test is no big deal, if the car is running so badly it won't pass the test here, you don't want the car. If you find the right car, and your mechanic gives it a thumbs up, it should pass. Of course, if it was recently tested, it doesn't have to be tested again for close to two years.

The emissions test is a VERY big deal. I have had quite a few cars that falied even know they ran perfectly. In fact the last car I registered back in 2005 before I left failed the NOX test. The only way I got it through the retest was by running pure denatured alcohol I bought from home depot. Even then, it barely passed. This is the car I used to drive from Phoenix to Reno when I left, so it definitely was in good running condition. I recommend taking the car to emissions and paying for it before purchasing if it is due. It will save you a lot of money.

[las vegas drunk]

Originally Posted by yukon

Sort of related question - when you buy a used car, does AZ use the purchase price as the value to determine the license tag fee? Or do they use the original value of the vehicle when new?

They go on a yearly percentage drop from the original M.S.R.P.

[yukon]

Originally Posted by las vegas drunk

They go on a yearly percentage drop from the original M.S.R.P.

So if I buy a 10 year old car that was originally valued at $25,000 but pay only $8,000 for it, AZ is going to use the $25,000 value for the license tag?

If they do, that sucks.

[Finger Laker]

they are going to use a depreciated value of the $25k - really no other "fair" way to do it

for example - if we both go out and buy 95 accords but you are a better negotiator and end up paying $3,000 less than me your registration would be less for the same kind of vehicle

or worse yet you'd get people coming to agreements to buy vehicles from each other for insanely low prices to reduce the level of registration taxes paid

[observer53]

Originally Posted by las vegas drunk

The emissions test is a VERY big deal. I have had quite a few cars that falied even know they ran perfectly. In fact the last car I registered back in 2005 before I left failed the NOX test. The only way I got it through the retest was by running pure denatured alcohol I bought from home depot. Even then, it barely passed. This is the car I used to drive from Phoenix to Reno when I left, so it definitely was in good running condition. I recommend taking the car to emissions and paying for it before purchasing if it is due. It will save you a lot of money.

They've changed it a lot since you left. But, it is a good idea to run any used car through the test before you buy it. It doesn't even have to be due for registration, I don't think, if you just want to test it and pay the test fee.

Originally Posted by yukon

So if I buy a 10 year old car that was originally valued at $25,000 but pay only $8,000 for it, AZ is going to use the $25,000 value for the license tag?

If they do, that sucks.

No, they DON'T keep using the 25000 that they start with. They use a depreciation formula, as noted above that drops the value each year. You can find the formula for how they do it online.

[yukon]

Originally Posted by observer53

No, they DON'T keep using the 25000 that they start with. They use a depreciation formula, as noted above that drops the value each year. You can find the formula for how they do it online.

The website gives the impression that the first year rate IS determined by the original MSRP, then the fee is based on a depreciated value annually after that. But, I could be reading it wrong too.

[Finger Laker]

The first year of the depreciating schedule - not the first year of purchase (unless you are buying new of course)

Take a pair of new 2006 Corollas in 2006 - both rolled off the line at MSRP of $25,000

Both are bought new

The owners pay the tax off the $25k amount and take it off the lot

In 2007 they pay on a value of $25k plus 1 year depreciation

In 2008 they pay on a value of $25k plus 2 years depreciation

In 2009 they pay on a value of $25k plus 3 years depreciation

In 2010 you buy one of them for $8,000

The guy who held his would still pay on a value of $25k plus 4 years depreciation for 2010

You would also pay on a value of $25k plus 4 years depreciation - it wouldn't be based off the $8,000 that you bought it for, nor would the clock start over making this year 1 and you paying taxes on the full $25k MSRP

[observer53]

Originally Posted by yukon

The website gives the impression that the first year rate IS determined by the original MSRP, then the fee is based on a depreciated value annually after that. But, I could be reading it wrong too.

When it's a new car, yes, as I said. You asked about a ten year old car. By the time a car is ten years old, the fee is pretty cheap.

[yukon]

You would also pay on a value of $25k plus 4 years depreciation - it wouldn't be based off the $8,000 that you bought it for, nor would the clock start over making this year 1 and you paying taxes on the full $25k MSRP

Ah, now that makes more sense. The state website is a bit vague about the fee when you're trying to license an older car. I can live with this. Thank you for clearing that up!