Understanding Texas Sales Tax and Vehicle Registration: A Guide For Ford Buyers

At Brinson Ford of Athens, located in the heart of East Texas, we know buying a new vehicle—whether it’s a rugged F-150, a bold Bronco, or a versatile Explorer—can be both exciting and overwhelming. Beyond choosing the perfect model, it’s just as important to understand what happens after you say “yes” to your new ride. That’s where sales tax, vehicle registration, and other state fees come into play. We’re here to help you navigate the process from start to finish with confidence and transparency.

What is the Texas Sales Tax on Vehicles?

When you purchase a vehicle in Texas, you're required to pay a sales tax of 6.25% on the vehicle’s purchase price or standard presumptive value (SPV)—whichever is higher. This applies whether you're buying a new or used car from a dealership. So, for example, if you’re buying a new Ford F-150 priced at $50,000, expect to pay an additional $3,125 in sales tax.

If you're trading in a vehicle when buying your next Ford, you’ll be glad to know that Texas allows you to deduct the trade-in value from the purchase price when figuring sales tax. To qualify, the trade-in must be part of the same transaction and turned in directly to the dealership. The sales tax is then applied only to the difference between the new vehicle cost and your trade-in value, helping you save a little extra at the time of purchase.

What is Vehicle Registration?

Once you've paid for your vehicle and taken the keys, the next step is vehicle registration—a legal requirement for driving your car in Texas. This process involves registering the vehicle in your name and receiving Texas license plates and registration stickers.

You’ll pay the base registration fee in Texas, but that’s not the whole picture. You’ll also pay additional local county fees and possibly an inspection fee if one hasn't already been completed. If you're purchasing an Explorer or Bronco, larger vehicles may incur slightly higher registration costs, depending on their weight and type.

Title Transfer Fees and Other Costs

In addition to sales tax and vehicle registration, you’ll also pay a title application fee to officially transfer ownership from the dealer (or previous owner) to you. This is a one-time fee handled during the registration process.

Other possible fees include:

• Dealer documentation fee: This varies by dealership and covers administrative paperwork. At Brinson Ford of Athens, we keep this fee competitive and transparent.


• Inspection fee: If the vehicle is new, the dealer often handles this before you take delivery. For used cars, it might be required at the time of registration.

Financing and Fees

When you purchase a new Ford—whether it’s an F-150, Bronco Sport, or Expedition—you’ll need to cover specific state-required fees like sales tax, vehicle registration, and title transfer costs. These are typically paid at the time of purchase and are necessary to complete your transaction and get your vehicle legally on the road. At Brinson Ford of Athens, we make the process as easy as possible by clearly explaining each fee upfront, so there are no surprises. Our team is here to walk you through every step, ensuring you know exactly what you're paying for and why.

Can You Handle Everything at the Dealership?

Absolutely. One of the benefits of buying from Brinson Ford of Athens is that we handle the heavy lifting for you. When you purchase a new Bronco, Explorer, or F-150 from us, we can help with your paperwork, including submitting your registration and collecting the necessary fees. You leave with temporary tags and peace of mind knowing everything is in motion.

What If You’re Trading In a Vehicle?

Trading in your current vehicle is a great way to reduce your overall loan amount or down payment. At Brinson Ford of Athens, we make the trade-in process fair and straightforward. While it doesn’t reduce your sales tax obligation in Texas, it does help you pay less upfront or lower your monthly payments. We offer competitive trade-in values for all makes and models, especially if you're upgrading to a new Ford.

Recap: What to Expect

Here’s a quick summary of what you’ll likely pay when buying a vehicle in Texas:

• 6.25% Sales Tax on the purchase price
• Registration fee, plus local and inspection fees
• Title transfer fee
• Dealer documentation and other processing fees

These costs may vary slightly depending on your county, vehicle type, and financing method; however, our team is always here to clarify every line item.

Drive Off With Confidence

Buying a new vehicle, such as the Ford F-150, Bronco, or Explorer, should be a fun experience, not a confusing one. At Brinson Ford of Athens, we strive to make the experience smooth and straightforward by guiding you through every step of the sales tax, vehicle registration, and titling process. Whether you're trading in your current ride or starting fresh, we’re here to help you drive off with confidence.

Ready to shop? Visit us in Athens, TX, or explore our inventory online. We’re here to help you find your next Ford and handle the rest.

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