Buying a car is a great investment. Despite this, very few people pause and think the investment through. You will most probably be interested in getting the funds you need to drive the car off the dealership and fail to learn all the additional costs that tag along.
Central Auto Sales shares the most common hidden charges to look out for before sealing the deal.
Registration and Licensing Fees
Different states carry out their auto registrations process differently The bottom line is you have to pay some amount to get your new car licensed. Understanding your local registration laws should help you buy an appropriate car.
For instance, while buying an older or more powerful car in one state could cost you more, other states have a flat registration fee. Even though the fee is comparatively small, the fact that you will pay each year will make a difference in five or so years.
Buying in a Different State
Many people assume that buying a car in a different state with more liberal licensing and taxation laws would do well. This is never the case. Any car dealerships in Arkansas selling to an Arizona resident will use Arizona laws to process the car.
Since you will have to get temporary Arkansas registration before getting one for your home state, you would end up paying more. Stick to your resident state no matter how crippling the purchase laws might seem.
Financing the purchase has the highest number of hidden charges unless you have a cool $35,000 lying around. You would have to take a long and repay it at an interest rate. Whilst people tend to separate this from the actual cost of procuring the car, financial advisors encourage getting your financing before shopping. This ensures that you shop with your financial prowess in mind, and not take a loan to cover your dream car’s price regardless of your current financial status.