Know What New Car Fees You Should Pay


Before you buy a new car, you should make sure you have an up-to-date car-buyer fee chart so that you will not be caught off guard by unexpected fees. You will know exactly what fees you are expected to pay before negotiations.

Vehicle registration fees, documentation fees and sales tax are the three most common car-buying fees that you will have to pay. The Vehicle Registration Fee is the state charge fee for a new car to be registered, given a title and the license plates cost. While the money is paid to the state, the dealers save you a trip to the registry by providing this service for you. Knowing ahead of time how much this is going to cost you will help.

Doc Fees are charged by the dealership for the completion of all purchase related paper work. Some states do not regulate these doc fees. Dealers will sell cars for great prices adding a very high doc fee. If you find the fee is higher than $100 you should negotiate a better car sale price.

Sales tax amounts are always more than expected. The chart will provide you with the maximum amount that is charged in each state. You may be entitled to a tax break if you trade in your old car, depending on the state you are in.

You should also be aware of dealer fees and advertising fees. Before signing any contracts, make sure no additional fees have been included. Ensure that all fee definitions are explained to you. In most instances Advertising fees are charged by the manufacturer to the dealer and should be paid. Anyhow, unfair dealers frequently add additional advertising fee (which is unofficial) to the car buying contract, possibly claiming that they are compensating the cost of their advertising expenses.

Some dealers also include other fees into the sales contract which have official-sounding names, for instance, “Shipping”, “Dealer Prep” or “S&H”. These fees should be found out as soon as possible in order to negotiate the purchase accordingly. Before signing the contract, ensure that it lacks any additional fees added by the dealer.

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