Family Trust Blog

Buying a car is exciting. The paperwork that comes with it, less so. Between the purchase price, sales tax, title fees, registration costs, and dealer add-ons, the total amount you'll owe can be noticeably higher than the sticker price suggests. If you're buying a car in South Carolina for the first time or just want a clearer picture of what to expect, this guide breaks it all down.

South Carolina Vehicle Sales Tax

South Carolina charges an Infrastructure Maintenance Fee (IMF) in place of a traditional sales tax on vehicle purchases. Here's how it works:

• The IMF is 5% of the vehicle's purchase price

• It is capped at $500 maximum, regardless of the vehicle's price

• This cap applies to cars, trucks, motorcycles, and other motor vehicles

This is one of the more favorable aspects of buying a vehicle in South Carolina. Whether you're buying a $15,000 used car or a $60,000 truck, you'll never pay more than $500 in IMF. Compare that to many other states where sales tax on a $60,000 vehicle could run $3,600 or more.

Trade-In Credit

If you're trading in a vehicle as part of your purchase, the IMF is calculated on the net purchase price after the trade-in value is subtracted. However, since the IMF is capped at $500, this primarily benefits buyers whose vehicles are priced low enough that the cap hasn't already been reached.

New vs. Used Vehicles

The IMF applies to both new and used vehicle purchases. Whether you're buying from a dealership or a private seller, the fee is the same.

Title Fees

When you buy a vehicle in South Carolina, the title needs to be transferred into your name. Title fees are paid to the South Carolina Department of Motor Vehicles (SCDMV).

If you're financing your vehicle through a lender like Family Trust, a lien will be recorded on the title until the loan is paid in full. Once the loan is satisfied, the lien is released and you hold the title outright.

Registration Fees

Vehicle registration in South Carolina is handled through the SCDMV and must be renewed annually. Registration fees vary based on the type of vehicle and its weight.

Additional Registration Considerations

• County fees: Depending on which county you live in, additional county-level fees may apply at registration.

• Personalized or specialty plates: Custom or specialty license plates carry additional fees beyond standard registration.

• Out-of-state vehicles: If you're registering a vehicle previously titled in another state, you'll need to provide the out-of-state title, a completed application, proof of insurance, and pay applicable fees.

Property Tax on Vehicles in South Carolina

This is one that surprises many people, especially those moving to South Carolina from other states. In South Carolina, vehicles are subject to personal property tax, assessed at the county level.

Here's how it works:

1. Your county assessor determines the taxable value of your vehicle, typically based on the NADA clean trade-in value.

2. That value is multiplied by the assessment ratio, which is 6% for personal vehicles.

3. The assessed value is then multiplied by your county's millage rate to calculate what you owe.

Example Calculation

For a vehicle with a market value of $30,000 in a county with a millage rate of 200 mills:

• Taxable value: $30,000 x 6% = $1,800

• Property tax owed: $1,800 x 0.200 = $360 per year

Property tax is paid to your county, not the SCDMV. In most cases, you'll receive a tax notice from your county treasurer before your vehicle registration is due. You must pay the property tax before you can register or renew registration on your vehicle.

County Treasurer Contacts for York County Area

• York County Treasurer: yorkcountygov.com

• Lancaster County Treasurer: lancastercountysc.net

• Chester County Treasurer: chestercounty.org

Dealer Fees to Watch For

When buying from a dealership, the out-the-door price includes more than just the vehicle and IMF. Dealers in South Carolina commonly charge a number of additional fees. Some are legitimate and required. Others are negotiable or worth questioning.

Tips for Navigating Dealer Fees

• Always ask for a complete, itemized breakdown of all fees before signing anything.

• The doc fee is common and largely unavoidable, but the amount varies from dealer to dealer.

• Add-ons like paint protection, tire insurance, and nitrogen fills are almost always optional despite how they may be presented.

• GAP insurance from a dealer is typically more expensive than what you can get through your credit union. If you're financing through Family Trust, ask about loan protection options before accepting the dealer's offer.

What to Bring to the Dealership

Being prepared before you walk in saves time and reduces stress. Here's what to have on hand:

• Valid South Carolina driver's license or government-issued ID

• Proof of insurance (required before you can drive the vehicle off the lot)

• Pre-approval letter from your lender, if financing through a credit union or bank

• Trade-in title, if you're trading a vehicle you own outright

• Payoff information for your trade-in, if you still owe money on it

• Checkbook or payment method for any down payment or out-of-pocket fees

What to Bring to the SCDMV

If you're buying from a private seller, or handling title and registration yourself, you'll need to visit the SCDMV. Here's what to bring:

• Signed vehicle title from the seller

• Completed Form 400 (Application for Certificate of Title and Registration)

• Proof of South Carolina auto insurance

• Odometer disclosure statement (for vehicles under 10 years old)

• Payment for title, registration, and IMF fees

• County property tax receipt showing taxes have been paid (or an exemption)

SCDMV offices are located across the state. You can find your nearest location and schedule an appointment at scdmvonline.com.

Estimating Your Total Out-of-Pocket Costs

Here's an example of what the total cost to purchase might look like for a $25,000 vehicle in South Carolina:

Your actual total will vary based on county, dealer, and any optional add-ons. This example is meant to give you a realistic ballpark before you walk into the financing office.

Financing Your Vehicle Through Family Trust

If you're planning to finance your purchase, where you get your loan matters. Dealership financing is convenient, but it isn't always the most competitive option. Credit unions like Family Trust typically offer lower rates and more straightforward terms than dealer-arranged financing.

Getting pre-approved before you shop puts you in a stronger negotiating position and gives you a clear budget to work with. Family Trust offers auto loans with rates as low as 3.99% APR, with a local team that can walk you through the process from start to finish.

You can also use our financial calculators to estimate your monthly payment before you commit to anything.

Helpful Resources

• SCDMV Online: scdmvonline.com — Forms, fee schedules, office locations, and online services

• SC Department of Revenue: dor.sc.gov — Information on the Infrastructure Maintenance Fee

• York County Treasurer: yorkcountygov.com — Vehicle property tax information for York County residents

• Carfax: carfax.com — Vehicle history reports

• NADA Guides: nadaguides.com — Vehicle valuation tool

Ready to Finance Your Next Vehicle?

Family Trust makes it easy to get behind the wheel without the financial stress. Explore our auto loan options, use our financial calculators to crunch the numbers, or visit one of our branch locations across York County and the Upstate to talk through your options with a real person. Give us a call at (803) 367-4100 or apply for a loan today.

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