Make sure you don’t forget about these additional costs associated with car buying.
When you are shopping for a new car, it’s easy to get swayed by the car’s sticker price. However, it’s important to remember that this cost isn’t the only one to consider. From taxes to additional fees, there are many other factors that will influence your car’s final cost. Here are the additional expenses to factor in.
Taxes
Many car buyers forget that they will be subject to sales tax and, in some states, personal property taxes when they buy a car. While this isn’t really a hidden cost, it is often overlooked, and car buyers forget to calculate taxes into their car’s final price.
Filing Fees
When you buy a car, you will encounter a number of additional fees that will be added to your final cost. Some of the most common fees include the following:
- Vehicle Registration Fees- Covers the cost of registering your vehicle.
- Title Fees- Covers the cost of registering or transferring the car title to you.
- Documentation Fee- Car dealerships charge this fee to cover the cost of processing the paperwork related to your car purchase.
- Emissions Testing and Compliance Fee- This fee covers the amount that the dealership had to pay to ensure that the car passed the U.S. emissions inspection when it was received.
- Advertising Fee- Dealers will often charge this fee to cover the cost of advertising the vehicle. Keep an eye out for this fee because many dealers will remove it, but only if the buyer notices it.
- Dealer Preparation Fee- These fees are included in the dealership paperwork and are said to cover the cost of shipping and handling the car when the dealership first acquired the vehicle.
Add-Ons
Add-ons usually come into play when you are in the finance manager’s office. Add-ons are a way for dealerships to sell customers things like warranties, additional forms of insurance, and even oil change and tire rotation bundles. Make sure that you listen carefully and ask qualifying questions to ensure that you know what each add-on does and what it will cost. Keep in mind that finance managers are still salespeople. While an add-on might sound like a good value, it might not be worth it for you. So, use your best judgment before agreeing to add-ons.
Don’t let these additional costs take you by surprise when you go to buy a car. After you’ve purchased a car (and hopefully gotten a good deal!), make sure you have the right insurance to protect it. For assistance with all your car coverage needs, contact the experts at Gant Insurance Agency to get covered today.