Where do I make my first car payment?

Where do I make my first car payment?

Where to pay for the car number

In this state of coronavirus alarm, many families are struggling financially, some of them with outstanding payments, such as a house or a car. Some of them with outstanding payments, such as a house or a car. Does it matter if I don’t pay the car payment?

In principle, yes. You should read the contract you signed with the brand, finance company or bank in question. There are two possible options: the finance company may charge you interest for late payment or, in the worst case, cancel the contract for non-compliance and you will owe the full amount of the debt.

The first situation, being charged interest for late payment, is the most common. The percentages vary depending on the company you signed with, so you should check the contract you signed to find out how much extra you will have to pay in the late payment. In some cases there may also be a late payment fee.

The second case is compatible with the first. If you do not pay too many installments, the finance company can cancel the contract for non-compliance. In this case, you will owe interest for late payment in addition to the total amount of the loan. In addition, the company itself can take action to repossess the vehicle, since it is de facto its property until you finish paying for it.

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How to obtain an agency car in payments

If you buy a new vehicle after the date of the first or second payment of the 2021 registration permit, you will still have to obtain it with the same requirements that are requested for old vehicles, although you will only be charged a proportional amount according to the date of registration and the following March 31, when you will have to obtain the registration permit again.

Until September 30, 2021: Cargo vehicles, mopeds, bicycles with engines, tractor-trailers, agricultural and industrial tractors and automotive machinery. Also, carts and trailers for coupling greater than 1,750 kilograms of load are included.

The Municipal Revenue Law states that “the owner or driver of a vehicle that is caught without having paid the circulation permit or with such permit expired, shall incur a fine of up to 35% of the amount payable for such concept”.

Can I exchange my financed car for another one?

The cost of this tax is very different depending on the municipality. Although the tax rates are established by law depending on the power and type of vehicle, each municipality sets the final rate.

In addition, if you do not pay the IVTM, you will not be able to sell your vehicle either, since one of the documents that the Dirección General de Tráfico will ask you for in order to transfer the vehicle to another person is the receipt that proves the payment of this tax.

You will also have to pay a compensation if the vehicle was not circulating with all the documentation in order and that includes the IVTM. In the case of leasing cars, this tax is included in the contracted service, so the customer does not have to make any management or pay it separately.

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How car financing works

The purchase of a new car is subject to the payment of the corresponding VAT, which is 21%, although there are always some exemptions, as in the case of vehicles registered in the name of persons with a degree of disability equal to or higher than 33%, who will only pay 4% in the case of a disability of reduced mobility.

The Road Tax, also known as the Tax on Mechanical Traction Vehicles, is a direct tax payable by the owners of most vehicles just for owning them and being able to drive them.

Where do I make my first car payment?
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