Fees You Shouldn’t Pay When Buying a Car
Purchasing a new car will surely bring thrills of joy into one’s life. Especially if it is the first car they buy. People who buy a vehicle for the first time don’t have a lot of experience, are not aware of what to look for and have no idea what they should avoid when it comes to paperwork and fees.
Used cars might be a bit cheaper, but certain car dealers will not be ashamed to charge more than they deserve, pretending they are doing extra work. Avoid getting stuck with a gigantic bill and find a way to enjoy your car without having the feeling that you have paid too much.
What fees should you refuse to pay?
1. Marketing and advertising – this is like asking a company who wants to hire a model to pay for the cost of previous shots. These are merely the costs of doing business that should already be included into the retail price of the car. Don’t be afraid to cut off this fee and stand your ground.
2. Documentation fee (doc fee) – this fee refers to the money a seller or dealer has to pay in order to check your records or to register the car. This fee must be paid if you want to purchase a vehicle, but in many cases dealers tend to charge way more than the amount required. The best solution is to ask your dealer to break down all costs for your and to do some digging in what concerns your state’s fee.
3. Extended warranty – “since you’re paying so much for your vehicle, wouldn’t it make sense to pay as much as possible to protect it?” Well, maybe dealers won’t use these exact words, but they will try to get you to welcome an extended warranty together with your new car. This type of warranty is meant to protect the car after the basic warranty expires but often enough it doesn’t cover the small, but necessary things.
4. Dealer preparations – this is pretty much similar to the first point mentioned. Dealers will try to pass preparing the car (washing, adding fluids, etc.) as a fee that you should be paying. Just refuse it and see what happens!
5. Rebates – this is another tricky subject because most states will charge sales tax on the full price of the vehicle (before applying the rebate). This means that if a car costs $20,000 and the rebate is $500 you will still pay tax on $20,000. Be very careful when dealing with this subject and consult this chart for additional help.
Getting a used car doesn’t exempt you from the taxes and headaches that come along with buying a vehicle. Fortunately, you have the liberty to say “no” when offers seem unfair and you can go to another dealership in search of the car of your dreams. Do your research and don’t accept to be manipulated into paying more than you should.
Tags: buying a car, fees, fees you shouldn't pay, tax, used car