Factor these costs into your car’s purchase price.
When you are car shopping, it’s important that you understand your full financial obligations before attempting to purchase a vehicle. This is why you need to account for additional costs that extend beyond the car’s sticker price. Here are some of the extra car buying costs you need to consider.
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 that you should expect include the following:
- Vehicle Registration Fees- This is about the same as when you renew your car registration every year.
- 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 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.
These are some of the additional costs that you need to consider when buying a car. Once you have your car, make sure you have it protected with the right auto insurance to meet your needs and your budget. For assistance with all your car coverage needs, contact the experts at The Schwab Agency in Colleyville, Texas today.