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Does your car down payment include taxes?

"I want to make a down payment on a vehicle. Does a car down payment include taxes?"

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Usually not. Your
down payment
doesn’t take into account any taxes. It’s merely a lump sum you pay towards the pre-tax value of the car.
That said, the dealer will add these taxes at closing. Most people simply roll them into the car loan; it’s an industry-standard practice.”
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