Buying a car in Michigan

Every figure below is sourced to Michigan’s own revenue or motor vehicle publications and dated. Estimates only.

Auto loan calculator

The real out-the-door number — including whether your state credits your trade-in against the sales tax.

Auto lease calculator

Money factor, residual, and the payment — taxed by your state's actual method, since some states tax a lease's full value upfront instead of each payment.

Loan payoff calculator

What paying extra actually saves you — in interest and in months — on a car loan, a personal loan, or anything else that amortizes.

0% APR vs. cash rebate

Which dealer offer actually costs less over the life of the loan, and the rate at which they tie.

Personal loan calculator

Payment, total interest, and the effective APR once an origination fee is deducted from what actually reaches your account.

Debt consolidation calculator

Whether one loan actually beats paying your existing debts off as they are — measured against the best you could do without consolidating.

Auto refinance calculator

Whether refinancing your car loan is worth it — including whether a lower payment is being bought with a longer term on a depreciating asset.

Lease vs. buy a car

The same car both ways over the same months, with the resale value credited to the buyer — the part most comparisons leave out.

Michigan at a glance

State sales tax: 6%; Local tax is added on top in most states — treat this as a floor.
Trade-in credit: Reduces your tax; You are taxed on the price less your trade-in allowance.
Dealer doc fee: $280.00 or 5%; $280 or 5 percent of the vehicle's cash price, whichever is LESS. The percentage binds on any vehicle under $5,600 — a $4,000 car is capped at $200, not $280.
Title and registration: $13.00; $13.00 title.

Local tax in Michigan

No local add-on — Michigan does not authorize county or municipal sales taxes, so 6% is the complete rate statewide. Michigan's annual registration is however value-based (a percentage of original MSRP), which behaves economically somewhat like a recurring vehicle tax even though it is styled a registration fee.