If you’re about to buy a new or used car, you may ask, “How much are vehicle tax, title, and license fees in New Mexico?” This information can help you make an informed decision concerning your budget. Luckily, our comprehensive guide to tax, title, and licensing fees (TTL fees) can provide you with some answers.
Tax, title, and license fees are the typical fees on top of the vehicle’s price that car buyers must pay when purchasing a new or used car. The tax is sales tax on the price of a vehicle. It’s just like buying a television – there’s the price of the tv on the display sticker, and then there’s the price that pops up on the screen when the sales associate scans the barcode.
The title fee is a one-time fee that happens when a new person takes ownership of the vehicle. After you pay the title fee, the vehicle’s title or “pink slip” is sent to you. The license fee and registration fee are the same things, which are the costs associated with registering the vehicle with the DMV for use on public roads and getting that little sticker to put on your license plate.
Now that you know more about New Mexico TTL fees, you’re ready to choose from our new vehicles for sale in Las Cruces, NM.
Yes, vehicle tax, title, and license fees are paid at the time of purchase when buying a car from a dealership. Suppose you’re buying a vehicle from a private seller. In that case, you will need to pay New Mexico TTL fees at your local Department of Motor Vehicles when you register the vehicle in your name and legally transfer vehicle ownership.
The only difference between TTL fees on a new car purchase in New Mexico vs. TTL used car purchase fees in New Mexico would be the price of the car. If you’re considering a new car or a used example of the same model, TTL fees on used vehicles will typically be less since the vehicle’s price or taxable amount is less.
If you’re wondering how to calculate tax title and license fees in New Mexico, you can easily calculate TTL in New Mexico with an online sales tax calculator or contact us.
When budgeting for a new car or certified pre-owned vehicles, don’t overlook sales tax. Purchasing a vehicle involves more than just the sticker price. Sales tax can be a significant expense in certain locations.
Fortunately, if you’re buying a new or used car in New Mexico, you’ll only be subject to a 4% sales tax,1 at least of this writing in 2023. This rate is well below the national average and can lead to considerable savings.
For exact Doña Ana County tax title and license fees, contact our dealership and be sure to learn about the free vehicle delivery we offer.
Trading in your old car at the dealership can be a smart way to save money on a new purchase. In New Mexico, the value of your trade-in is exempt from sales tax. This means you only pay the 4% sales tax1 on the remaining purchase price after applying trade-in credits. Learn more with a tax, title, and license calculator for New Mexico.
Although cash incentives and manufacturer’s rebates can still reduce costs, it’s essential to note that in New Mexico, sales tax is calculated based on the full vehicle price before any deductions other than vehicle trade-in are made.
When buying a car in New Mexico, you can easily calculate the sales tax by applying a flat 4% rate1 or by using a New Mexico TTL calculator.
Although most vehicle purchases in New Mexico incur sales tax, certain exemptions exist. These include vehicle purchases made for the State of New Mexico, vehicles modified due to a driver’s disability, and purchases made by disabled veterans. For a comprehensive list of exemptions, check the New Mexico DMV website.
When buying a vehicle, additional costs exist beyond sales tax. In addition to sales tax, car buyers in New Mexico must budget for title and vehicle registration fees. These fees cover the necessary filing of sales contracts and tax documents for the purchased vehicle.
You must pay to register your vehicle every year. After you make your payment, you receive a new copy of your vehicle’s registration in the mail, along with a sticker for your car’s license plate. When you buy a vehicle, you must pay this fee at the time of purchase to register your vehicle for the first year of ownership.
When buying a new vehicle, it’s important to be aware of the various costs associated with the process. Let’s take a closer look at the typical expenses you may encounter:
Registration Fee: New Mexico charges a registration fee to register the vehicle under your name officially. Some states have a flat rate, while others calculate it based on the vehicle’s weight, age, or value. It’s important to pay the registration fee promptly to avoid extra charges for late payments.
License Plate Fee: The cost of license plates may be included in the registration fee or billed separately. Depending on your location, you can transfer your old license plate to the new vehicle, or you may need to obtain a brand-new plate.
Auto Insurance: The cost of auto insurance varies greatly depending on several factors, including your age, driving history, and insurance status. You will need to show proof of insurance to drive the vehicle off of the dealership lot.
Title Transfer Fee: The title transfer fee covers the legal documentation that indicates the new ownership of the vehicle and can vary depending on the age and value of your car. When purchasing a car, you must transfer the title from the previous owner or dealer to your name. This is also called the pink slip.
Lien Recording Fee: If the vehicle has a lien (a loan attached to it), the DMV may charge a fee to record that lien on the title.
Emissions/Inspection Fees: Many states mandate vehicle inspections at the time of purchase and may require emissions testing as well. You may also be required to pass an emissions test to register the vehicle.
Being aware of these typical costs can help you plan and budget for a new vehicle effectively and ensure a smooth and hassle-free buying process.
1Information contained on this page is subject to change and may not cover all applicable circumstances. For detailed and up-to-date information, please refer to the official New Mexico Taxation & Revenue page on Motor Vehicle Excise Tax here.