You’ve done your market research, but you’re still a tiny bit unsure of what you want to spend on before purchasing a new vehicle. Besides the cost of the vehicle itself, there are many other additional new car fees that you can expect to pay at the dealership. These are:
- A fee that any dodgy car dealership might add to your bill that you must insist on is removed.
- Unavoidable fees that you’ll have to pay no matter what.
- Fees that you might need to pay in a lot of cases, but that you must try and negotiate.
You must keep in mind that a good car dealership will work with you to help understand the process. Check out the online reviews and if you’re apprehensive, ask a friend who has experience purchasing a vehicle to tag along.
New Car Fees You Should And Should Not Pay
New Car Fees You Must Pay
You can avoid being upside down on your loan if you have a good plan in place to pay these fees upfront.
- Sales Tax
There’s no legal way to wiggle your way out of this one unless you’re buying a car from a state that does not charge sales tax. Most likely, you’ll have to pay state as well as local sales tax on your new or used car. But in some cases, if you trade in an old vehicle you might get a sales tax break. Learn more about the trade-in value of your current car here.
- Destination Fee
Mostly because this step involves spends on fuel and a lot of man-hours to get the vehicle to you, this fee is unavoidable.
New Car Fees You Should Try & Negotiate
- Document Fee/Conveyance Charge
While the salesperson might tell you this cost is non-negotiable, it is still worth asking whether or not the fee could be lowered. Though some states have maximum doc fees that dealerships can charge, many states are largely unregulated. If you must pay this cost, avoid paying anything higher than $300.
- Vehicle Preparation Fee
This cost only makes sense to you if you’re buying a used car, but a new car should not need any prep before you’re on your way with it. If you see them charging you for this cwHost, consider it a red flag.
- Extended Warranty
Speak with your insurance agent before you ever head out to look at new vehicles. It is not always necessary to buy an extended warranty.
New Car Fees You Must Avoid Paying
- Registration Fee
You can avoid this cost at the dealership altogether, by going to the DMV yourself and filing the necessary paperwork.
- Advertising Fee
This fee is paid by the dealership to the manufacturers, which is included in the price they pay for the vehicle. If you see this charge on your bill, you must ask them to remove it.
- VIN Etching Fee
If you have your VIN etched into your windows elsewhere, you will pay less than a quarter of the price!
- Protection Fee
You must avoid spending $200 – $500 on this. The dealership is basically charging you $200 for a car wash and to make your interiors more stain-resistant. Something which you can do yourself and at a much lower cost.
Since you now know better about the costs you HAVE TO pay, the ones you can NEGOTIATE and the ones you can totally AVOID, you must head to the Car Factory. We not only help you find a car to fulfill your aspirations, but we also make sure all costs are transparent and under your budget. Schedule your test drive in our Miami or Hollywood locations online today at CarFactory.com or call (786) 406-6234!
Recommended Read: Tips For Buying A Car In Miami, Florida