Car is one of the most loved possessions of Americans. Car driver adore the four-wheeled beauty so much that they often make an impulsive purchase without considering the hidden costs. This impulsive nature gives dealers a chance to cheat car buyers. They add so many extra charges and fees without your notice and end up earning more, unnecessarily more.
Don’t let the hidden dealership costs ruin your car buying experience. Know everything about the real cost of buying a car.
Vehicle Registration Fees
When you buy a new car or a used car, you need to register it with your local DMV office and pay vehicle registration fee. If you buy a car from a dealer, he/she does the work of registering the vehicle on your behalf.
When you buy a car, you need to pay the state sales tax. You must also consider several other local taxes levied by your city, county, etc. Usually, the dealers charge the sales tax from you and pay it on your behalf.
Both fees mentioned above are non-negotiable and inevitable for every car buyer. There are other questionable fees mentioned below:
Dealer Preparation Fees
Dealer preparation fees are also called vehicle preparation fees and shipping fees. They are charged by dealers to cover the cost of preparing the car for a buyer. Dealers argue that they undertake a lot of work for making the car ready for the buyer. But, usually the work includes nothing but washing the car, removing protective covers from the seats and other such things. So, it is important that you negotiate this charge with the dealer.
Advertisements and marketing are important for attracting customers. But, it is not necessary to charge customers heavily for it. Dealers levy advertising fee because they argue that it was advertising that brought car buyers to them. You can negotiate a lower price with the dealer to ensure an affordable car purchase.
For a dealer, every car purchase comes with a significant amount of paperwork. So, dealers charge documentation fees or “doc” charges from car buyers. It is important to know that few states such as New York, California and Delaware have a maximum limit for charging documentation fees. While there are several states such as Florida, Kansas, Iowa, etc. that don’t have a limit. If you live in a state that doesn’t have a limit for the fees, you can negotiate and reduce it to make your purchase cheaper.
Fees for Dealer-Installed Accessories
Dealers can add several unwanted expensive accessories such as aftermarket wheels, sound system, stolen vehicle recovery system, etc. and charge you for it. Make sure that you are paying for only those things that you need. Also, remember that you can obtain most of the accessories at a cheaper cost by shopping around elsewhere.
Floor Plan Fees
Dealers don’t have all the cash that they require to buy vehicles. So, they obtain finance. Dealers charge floor plan fees and try to extract the cost of finance from car buyers.
So, whenever you set out to sign your contract at the dealership read everything and asks question regarding anything that raises an alarm. You can take a friend or a family member with you if you are feeling overwhelmed with the thought of negotiating with the dealer. Remember that signing without negotiation means allowing the dealer to take possession of your hard-earned money.
Now that you know all about the hidden dealership costs, you will be able to save money. Why not opt for greater savings with Car Destination. The company provides no obligation loan quotes without any application fee. Apply now and get ready for cheap auto finance.