Purchasing a car can be a fun experience. You’re finally getting your dream wheels, but buying a new car can be expensive, stressful, and filled with money traps. To avoid being sucked into these traps, customers can protect themselves by getting privy to these five hidden fees when purchasing a car.
It’s no secret that certain factors affect the cost of your car insurance and car. It’s best to know the ins and outs of purchasing a vehicle, including the hidden fees.
All cars, used and new, will require a sales tax, and the value of the taxes you pay depends on where you reside. Forty-five states have sales taxes ranging from two to eight percent. If your state doesn’t have a sales tax, you will still have to pay a special tax for your car.
You should negotiate with your dealership or tax authority to determine how much in taxes you’ll owe so you can budget accordingly.
Most dealerships will add a hidden documentation fee, which is a processing fee to do paperwork on your purchase. Some dealerships also charge a preparation fee to help get your car ready with a car wash and oil check.
You might also get hit with a delivery charge if your car needs to be delivered from the manufacturer. You can negotiate some of these fees, but it’s always best to read over each cost to know what you’re paying.
Marketing costs money, and it costs money for car dealerships to attract customers to their place of business. Some dealerships will add an advertising fee to pay for this expense. These fees are negotiable, and you should try to bring these prices down.
Title and Registration Fees
Similar to sales tax, title and registration fees are mandatory expenses that are not included in the retail price, and these fees vary from state to state. Vehicle title fees can range from $10 to $85. When purchasing your vehicle, talk to your salesperson about your budget so they can show you affordable options before adding in title and registration fees.
Unnecessary Add-On Fees
Some car dealerships offer add-ons that will increase your car’s value. Additional fees may include window tinting, dent protection, nitrogen in tires, and key protection. However, these additional fees can cause the price of your vehicle to rise. Review your expenses to ensure you’re not paying for something you don’t want or need.
When purchasing a car, you can get blindsided with excitement and forget to check for unnecessary expenses. Take the time to read the fine print and negotiate these five hidden fees when purchasing a car to prevent overpaying.