Ga Annual vs. Permanent Trailer Tag

[nc redneck]

In NC 3 years is the break even point. I did a few of my trailers 2 years ago. One of them I have owned for 18 years. I like the permanent tags don't have to mess with renewals and stickers. A good deal if you know you are going to keep it IMO.
Thanks
Scott

 

[Panik]

http://motor.etax.dor.ga.gov/motor/RegistrationSection/forms/pdf/MV_Schedule_of_Tags_and_Fees.pdf

$12 annual $48 permanent

Thanks for digging this up! Don't know why, but I could not find that info to save my life. Barring any weirdness at the tag office I'll be getting a permanent tag come Monday. Lol can't see upgrading trailers anytime soon seeing as this one is an 18' + 2'.

 

[thatguy]

Virginia offers a similar tag for certain trailers.. If you keep the trailer more than 3 yrs you are better off with the permanent tag..

the permanent trailer tag in VA is a one time payment, no annual renewals after that..

 

[JDgreen227]

Some time ago Michigan switched over to permanent trailer tags based on weight of the unit. My '95 Jayco travel trailer cost about $44 per year when it was new, and I had to buy a non-expiring tag which set me back $150. By now I am way ahead, and the same goes for my '09 Legend UT, had to pay $75 for a non-expiring tag but it would have cost me about $20 per year under the old system.

Only issue that ticks me off is that you CANNOT transfer a permanent trailer tag to another unit...if you trade in a travel trailer on a newer model, or sell your UT and buy a new one, you have to buy a new tag. I know a LOT of guys who have moved UT plates from unit to unit because they don't want to fork over the $75 and the law is tough to enforce.

 

[Panik]

Only issue that ticks me off is that you CANNOT transfer a permanent trailer tag to another unit....

My main concern at this point is dealing with a stolen permanent tag. I had one stolen of off the 16' + 2' that I upgraded from earlier this year. Happend in the local Home Depot parking lot last year. Think I'll use some hex head bolts and loctite and mount it to the fender as opposed to the flimsy plate holder the temp on now.

 

[Panik]

Steve, it wound up costing me a total of ~76.00 for the permenant tag. That includes tag cost, ad valorem taxes, and a 10.00 late registration fee and is good until Feb 2015.

The kicker is that mid way through the process the lady asked me how big the trailer was, and when I asked her why she said because she wanted to know if it was commercial or not.

 

[smstonypoint]

http://motor.etax.dor.ga.gov/motor/RegistrationSection/forms/pdf/MV_Schedule_of_Tags_and_Fees.pdf

$12 annual $48 permanent[

Rats -- I was hoping for a larger difference in price in order to make the problem more interesting. However, I can't pass up the opportunity to talk about finance.

The issue is whether to pay a lump sum or make a series of periodic cash payments. Because a dollar today is worth more than in the future (if we rule out deflation), a fair comparison requires that we compare the present value of the series of periodic payments to the lump sum paid today. Life is made easy in this case because the periodic payments are constant ($12/year). A series of constant periodic payments is called an annuity. There are two types of annuities -- for an ordinary annuity the first payment is made (or received) at the beginning of the next period, and for an annuity due the first payment is made (or received) today. Typical consumer loans are ordinary annuities. The annual tag purchase is an annuity due because the first payment is made today.

The easiest way to find the present value of an annuity is to use an online calculator -- here's a good one for an annuity due: Present Value of an Annuity Due Calculator.

Ignoring the transactions costs of annual renewal, it's obvious that for any positive interest (discount) rate the OP would buy the annual tag if he planned to keep the trailer for four or fewer years. What if he planned to keep the trailer five years? Using the "Annual Interest Rate" section of the linked calculator, five annual payments of $!2 beginning today would have a present value of $48 using an annual interest rate of 12.5898%. Ignoring transaction costs and taxes, the OP would come out ahead by purchasing five annual tags if he could earn more than 12.5898%/year on his investments.* Suppose he could earn 13%/year. Using the "Present Value" section of the calculator, the present value of five equal $12 annual payments beginning today would be $47.69.

Steve

* The "breakeven" interest rates increase with the holding period.

 

[jimrs]

Back in 2001 I bought 2 trailers, one a boat trailer, and one a utility trailer. Due to having to deal with the department of transportation I bought Perm tags for both. I just sold the boat and trailer and took the tag to turn in. I don't remember the price for the tags but it was worth it not to have to go back to renew it every few years. But I do remember it cost less to do the perm tag figuring I would keep both more than a few years.

 

[Panik]

I don't remember the price for the tags but it was worth it not to have to go back to renew it every few years. But I do remember it cost less to do the perm tag figuring I would keep both more than a few years.

If the permenant tag allows me to deal with the tag office less than an annual tag I'll take that as be a worth while investment.....


That being said, Steve, I am not a economist. In fact the only way I passed micro-econ in college was because I forgot to sign my final exam and the prof let me choose the only non failing, unsigned exam paper.

If we use your assumptions, going beyond 5 years, am I correct in thinking that the only way for an annual tag to remain an economically viable investment would be to be able to obtain an increasingly greater annual ROI %. Am I understanding this correctly, or did I just show my ignorance to all and sundry on the interwebz?

 

[smstonypoint]

If we use your assumptions, going beyond 5 years, am I correct in thinking that the only way for an annual tag to remain an economically viable investment would be to be able to obtain an increasingly greater annual ROI %. Am I understanding this correctly, or did I just show my ignorance to all and sundry on the interwebz?

You passed this exam.

You would need an annual return greater than 19.8577% to justify keeping the annual tag for six years, 24.2925% for seven years, etc.

Steve