The costs for tax, title and license, commonly known as TT&L (T-T-and-L), are often added to your invoice when you purchase a car. These charges are required by the state in which you buy your car, and each dealership should charge the same percentage and fees as every other dealership in the state. Car dealers are actually saving you time and effort by handling these transactions for you at the Department of Motor Vehicles. If you buy a car independently, however, you must take care of these transactions on your own. The first charge, tax, is based on your state sales tax percentage. If your state doesn't have a sales tax, you won't have to pay tax on your car. The next charge, title, is the certificate that proves you are the legal owner of the automobile. A title is required for all passenger vehicles. The last charge, license, includes the license plates and registration for your car. Each state may have different procedures and tax requirements for purchasing an automobile, so contact the Department of Motor Vehicles or an automobile professional for more information.
©2006 Crossroads Mobile. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.