ASK THE AUTO LOAN GURU

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by Kelly Eargle

Question: It looks like there is tax paid when I get my loan, but then I have to pay more money when I go to the DMV to get my plates. What's that all about? - Janie H.

Answer: Those are two different taxes, sales taxes and property taxes.

When you buy a car, you must pay the sales tax. This is true if you buy from a dealer or another person. Sales tax can include the state sales tax, and sometimes special-district, city and/or county taxes. Your lender is able to calculate that for you and roll it into your financing. When you go to register your car to get your plates, your county charges property tax. That is not handled by your lender.

Kelly Eargle is an auto financing expert with the Credit Union of Colorado, which has a local branch in Arvada. Email your question to EargleK@cuofco.org. Not all questions will result in publication.