Why Alabama car tag prices are so high right now

BIRMINGHAM, Ala. (WBRC) – Some folks have reached out to WBRC with concerns over the price of your tag renewal and why it’s so high.

We’re On Your Side looking at what goes into the price of renewing your license plates.

The prices all of us are seeing now to renew our tags can be traced back to the pandemic. That’s when car prices, especially used car prices, jumped. The price you pay to renew your tag depends on the value of your vehicle.

The Alabama Department of Revenue says that every year they take a snapshot based on the estimated value of your car as of October 1 the prior year. As the value of your vehicle changes, whether it’s new or used, the price you pay for tags changes. With prices still above pre-pandemic levels, it’s likely you’ll be paying more for your renewal this year.

Consumer Reports auto reporter Benjamin Preston says manufacturers are also causing the prices of cars to rise.

“Manufacturers have prioritized the highest, the most popular models, and they have also been producing models that have more of the popular trends packages that cost more money, so that has pushed up prices too. Used car prices went up and that has kind of pushed inflation,” said Preston.

In years past, you would typically pay $23 to renew your tag plus a small issuing fee, but with prices of vehicles still going up, you’ll pay more.

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