Is December The Best Month To Buy A Car In Georgia?

Media / Blog

Is December The Best Month To Buy A Car In Georgia?


Protected: Your Smart Money Moves with oXYGen Financial 11/13/13

November 13, 2013

It’s become pretty common knowledge that the end of the year can be one of the better times to go car shopping.   While there is no guarantee that all year end auto dealership sales will affect every single model on the floor, more often than not you can score on a 2013 model while the 2014 models are rolling out on to the floor.  Remember, that dealerships are businesses that need to hit sales goals, so I would encourage you to go toward the latter part of the month (especially at the end of a quarter) and even at the end of the day when the salespeople are motivated to get a deal done.  But why could from now until the end of the December be a great time to specifically buy a car in Georgia?

Beginning March 1, 2013 of this year, state and local sales tax no longer apply to the purchase of a motor vehicle (except for the 1% transportation tax on the first $5,000 of any vehicle sale in regions that have this tax). All vehicles purchased or transferred into ownership after this date are no longer be subject to the annual ad valorem tax (sometimes called the birthday tax). Instead, vehicle purchases are subject to a new, one-time state and local title ad valorem tax (TAVT) that is paid at the time the owner registers the vehicle and applies for the title with the county.  In 2013, this tax is at a rate of 6.5%.

However, what most Georgia taxpayers do not know is what lurks around the corner in 2014. Beginning January 1, 2014, the tax rate will increase to 6.75%. It will increase to 7% on January 1, 2015. It will remain at that rate unless defined revenue targets in the law are not met at which time the rate could adjust up to a maximum of 9%.  Wow!  Can you imagine a TAVT tax of 9%?  How much money can this mean to you if for a vehicle purchase here in 2013?

While ¼ of a percent doesn’t seem like a big number, imagine that you purchase a car (new or used) for $30,000.   The savings wouldn’t be huge with about $75 more dollars going into your pocket.  However, if you are leasing or buying a luxury car, it could mean several hundred dollars in your pocket in addition to this time of year being a particularly good time to purchase a car.   Keep your eye on this TAVT tax especially at the number grows over the next several years.

Your Smart Money Moves readers already know that I am not a big fan of new cars.  I haven’t purchased one in over twenty years.  However, I am a big fan of saving every dollar I can by being strategic with my financial purchases.  So this might be a neat way to buy a holiday gift and put the stocking stuffer of some extra cash in your pocket.

Written by:

Ted Jenkin

Request a FREE consultation:


Why Can’t We Do It All?

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice.

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.