Hoovey689

iTrader: (16)

Better quality, better tech — and one big motivation for maintaining them better

Source

mmarshall

Another reason that a lot of older vehicles are being held on to longer these days is that a number of people simply don't vehicles that are rolling computer/high-tech machines with often-unreliable electronics. In my state (VA), there is also the added issue of Personal Property Tax, a yearly tax on vehicles/motorcycles/boats/airplanes/farm-equipment that is based on assessed-value, which, of course, means much higher tax-bills on newer vehicles, before depreciation sets in with age.

stasek

I guess our household is just about average - 2006, 2x2008, and the baby - 2011😁.

bitkahuna

iTrader: (20)

yup, another reason i don't live in a high tax state!

mmarshall

We get at least some break, though, from the fact that we don't have any County income-taxes in VA...the state constitution doesn't allow them. Independent cities and towns, though, which, in VA, are legally not part of counties, do have a income tax.

Back on the thread-topic, though, it would be interesting to see the average age of automobiles in Florida, where you live. The large number of seniors (many of whom like older, larger sedans for their comfort), their often-dislike of newer/more-complex technology, and their often limited-incomes would tend to work towards keeping older vehicles longer. Cars kept at or near the coast, though, of curse, run into the problem of the salt air/water and corrode quicker.

Kennyr44

Here in Colorado a new car at a mere 35k is taxed about 8% and tags are $775 the first year. They go down slowly every year though. Yearly tags for a new LS460 would be ungodly expensive.

Stroock639

i'm happy to increase the average lol

mmarshall

Is that $775 part of the tax itself, or is that in addition to the tax? Hard to imagine it being in addition.

Here in VA you pay the assessed-tax each year, and the license fee itself, for a regular passenger car, is around $40.

The tax itself, of course, if you itemize, is deductible on your Federal Schedule A...the license fees aren't.

While we're on the subject of vehicle-age (and Colorado)....I'll bet you see a lot of Subarus (even older ones) where you live. The Outback, of course, is the official car of the U.S. Ski Team. I once owned one, and can see why.

JDR76

My tags on my GS this year were $800, so I can relate. Should be down to about $750 next year. My sales tax was just shy of 11% (about $6300).

corradoMR2

Geez! I'm like 1/6th the average . My life's vice.

Very similar numbers in Canada after a quick Google search.

mmarshall

With vehicles themselves being kept longer, auto manufacturers might (?) have to start keeping replacement parts for them in production longer. The Koreans and Mitsubishi, of course, have to keep drivetrain parts for new vehicles at least ten years because of the long 10-year powertrain warranties. The proliferation of extra-cost warranty-extensions at other manufacturers could also put pressure on them to have the needed parts on hand for longer periods as well.

UDel

Sounds right. Cars are much more reliable over the past 10 years or so, cars for the past 10 years have most features/tech buyers want, much cheaper just to keep a older car then leasing/buying a new one, many people don't consider newer vehicles to be all that attractive with garish grills/over styled front ends, and buggy annoying touchscreens/menu's may turn many buyers off as well as the high costs of new vehicles. Insuring new cars is much more expensive plus you have in many states registering them every year based on value which is ridiculous and expensive compared to older cars.

Toys4RJill

Always, a fascinating discussion. Wages in Florida are lower than 2/3rds of the rest of the US. Median income is also lower per household by about $10K. It is all relative at the end of the day...

Florida is a great place to live. But so are other places, taxes would the last thing that stopped me from living somewhere.

mmarshall

The reason we have that system in Virginia is that the state constitution does not allow local county income taxes, in the same manner that some other states, like Florida and Texas, don't have a state income tax. Without that source of revenue from a county income tax, the counties, instead, get much of their revenue from real-estate and vehicle-taxes.
As it is, in Virginia, we, as vehicle-owners, aren't even paying the full value of the local car-taxes anymore, anyway...only a part of it (about 60% of the full-assessment). That's because part of it, on voter-demand, was rolled back a number of years ago, by the state legislature. The state itself makes up the 40% difference in grants to the counties. A rather complex system, but it works.

But you're right....many people keep older vehicles past their prime for that very reason...they simply don't want to pay the car-tax. One of my neighbors is still rolling around in an original 1Gen Subaru Legacy sedan that has to be almost 30 years old...original faded white paint and some corrosion marks. In addition, vehicles 25 years or older, in Virginia, qualify as antiques, with special discount or free license-plates...but those plates allow only very limited driving as well.

And, of course, you also have the tax-cheaters/scofflaws, who ignore Virginia law and keep vehicles here that are registered in other states so they don't have to pay the car tax. Active-duty military are exempted, but most people have to register their cars in Virginia and the affected county within 30 days of moving in That's another whole subject, though...perhaps not suitable for this thread.

mmarshall

Florida can operate without an income tax because a lot of tourists and winter-vacationers come into the state and spend so much money there. They don't need high taxes. So can Nevada, because, of course, so much tourist money is spent in the state's casinos, hotels, and (legal) brothels in Reno and Las Vegas.

On the thread-topic vehicle age, you see a lot of older larger sedans there at least partly because of the taste of the many seniors that live there. Same way up here around D.C. Some of the older folks simply don't like the newer sedans, don't like their alternatives (i.e. SUVs) and are holding on to older DTS and Town Cars, repairing them instead of trading them in.