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The Dilemma of Buying a Car in Brazil or the USA Is Common for Many. Discover If It Is Worth Buying a Vehicle in the United States and How the Taxes Applied in the North American Country Work.
Buying cars in the USA is a very different experience compared to Brazil. Starting with the financial and bureaucratic aspects involved in purchasing automobiles. The difference between the countries is striking. Therefore, some questions arise, such as whether it is worth buying a car in Brazil or the USA, or if there is an IPVA in the USA, and in this article, we will clarify these doubts.
Is There IPVA in the USA?
Buying cars in the USA presents significant financial advantages. Lower prices, combined with affordable financing options, make the process attractive. The automotive market in the USA, influenced by local purchasing power, is considerably larger than the Brazilian one.
To get an idea of whether it is worth buying a car in Brazil or the USA, we will use the Toyota Corolla as an example, which would require about 106 months of work with the national minimum wage.
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The Toyota Hilux is R$ 75.5 thousand cheaper and bets on the 2.8 turbodiesel engine with up to 204 hp and 50.9 kgfm to catch up with the VW Saveiro, which leads with 4,472 sales.
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The new Renault Koleos has a screen exclusively for the passenger that is invisible to the driver, heated rear seats, and 29 assistance systems, but its Chinese competitors cost R$ 40,000 less and deliver more power.
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The car stored for 38 years: when opening the barn door, what appears is breathtaking and looks like a scene from a movie!
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Fiat works miracles in the Brazilian market, lowers the price of its 0 km hatch to R$ 69,990, reestablishes the model as the cheapest car in the country, and reignites the battle against Kwid and C3.
In contrast, in the United States, only 11 months would be needed to achieve the same goal, considering the current minimum wage. Each U.S. state has its own tax rules. In Florida, for example, buyers face a series of charges when buying cars in the USA.
Interestingly, half of U.S. states do not charge the well-known tax in Brazil, referred to there as Auto Property Tax (APT). Virginia, however, has the highest rate. In Florida, this tax is nonexistent, providing savings to owners who are in doubt about whether to buy a car in Brazil or the USA.
How Does It Work?
In the United States, the equivalent of the IPVA charged in Brazil varies from state to state, and is often referred to as the “Vehicle Registration Fee” or “Property Tax.”
Unlike the Brazilian IPVA, which is generally a fixed annual tax based on the car’s value, in the USA, vehicle fees depend on local legislation, which can create large variations in the amount charged.
In some states, like California and Virginia, the tax is calculated based on the market value of the vehicle and its age, and the fees can be high, especially for new and luxury cars. Other states, like Montana, have lower amounts or a fixed fee, regardless of the car’s value, attracting vehicle owners looking to save on taxes.
In states like Oregon and New Hampshire, for example, vehicle owners do not pay this type of annual tax; they only pay a registration fee when purchasing the vehicle, which can significantly reduce costs. Overall, while Brazil has a more standardized and annual collection of IPVA, in the United States, the cost of owning a car varies greatly, influenced by each state’s tax policies and the vehicle’s profile.
Is It Worth Buying Cars in the USA?
Now that we know if there is IPVA in the USA, it is important to understand how the American automotive market works.
In the overall picture of the United States, despite taxes and fees being charged during the purchase, the subsequent cost is limited to the annual registration renewal. Additionally, when buying cars in the USA, in the case of a change of ownership, the plate remains with the original owner, simplifying the selling process.
Those living in the USA have also noted the prominent presence of automakers in the country. Popular models dominate the market, further reinforcing the attractiveness of local offers. The differences in price and accessibility when buying a car in Brazil or the USA are substantial.
To buy cars in the USA, specifically in Florida, the buyer will pay the following fees:
- Registration Fee;
- Title Fee;
- Sales Tax;
- Licence Plate Fee;
- County Tax.
New IPVA Law in Brazil Will Arrive in 2025
Now that we know if there is IPVA in the USA, it is important to remember that starting in 2025, a group of people living in Sergipe will be able to enjoy an exemption from the payment of the Property Tax on Motor Vehicles (IPVA).
The new law, which has already been published in the DOU, expands the benefit to vehicles valued at up to R$ 120,000 for people with physical, visual, severe intellectual disabilities, Down syndrome, and autism.
Previously, the IPVA exemption was granted only for cars valued at up to R$ 70,000. With the new legislation in Sergipe, the limit has been increased, meaning more people can benefit from the partial tax exemption.
Individuals with physical, visual, severe intellectual disabilities, Down syndrome, and autism, as well as their legal representatives, can apply for the IPVA exemption, provided the vehicle is registered in the beneficiary’s name and has a value of up to R$ 120,000.
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