Additional Car Buying Costs to Look Out For

cars parked on a lot

Additional Car Buying Costs to Look Out For

Don’t be surprised by these extra costs when buying a car.

Whether you are buying a new or used car, it is a major financial investment.  Unfortunately, many car buyers get so caught up with a vehicle’s sticker price that they forget that their total will be affected by additional costs as well.  Here are some of the extra expenses that you should consider when shopping for a new car.


Many car buyers forget that they will be subject to sales tax and, in some states, personal property taxes when they buy a car.  While this isn’t really a hidden cost, it is often overlooked, and car buyers forget to calculate taxes into their final cost.


When you buy a car, you will encounter a number of additional fees that will be added to your final cost.  Some of the most common fees that you should expect include the following:

  • Vehicle Registration Fees- This is about the same as when you renew your car registration every year.
  • Title Fees- Covers the cost of registering or transferring the car title to you.
  • Documentation Fee- Car dealerships charge this fee to cover the cost of processing the paperwork related to your car purchase.
  • Emissions Testing and Compliance Fee- This fee covers the amount that the dealership had to pay to ensure that the car passed the U.S. emissions inspection when it was received.
  • Advertising Fee- Dealers will often charge this fee to cover the cost of advertising the vehicle. Keep an eye out for this fee because many dealers will remove it, but only if the buyer notices it.
  • Dealer Preparation Fee- These fees are included in the dealership paperwork and are said to cover the cost of shipping and handling the car when the dealership first acquired the vehicle.


Add-ons usually come into play when you are in the finance manager’s office.  Add-ons are a way for dealerships to sell customers things like warranties, additional forms of insurance, and so on.  Make sure that you listen carefully and ask qualifying questions to ensure that you know what each add-on does and what it will cost.  Keep in mind that finance managers are still salespeople too.  While an add-on might sound like a good value, it really might not be worth it for you.  So, use your best judgement before agreeing to add-ons.

These are some of the additional costs associated with buying a car.  Remember, your new car will also need the right auto insurance.  For assistance with your car coverage needs, contact the experts at Club Agency Insurance Brokerage in Garden City, New York.  Our dedicated team is eager to assist you with all your coverage needs today.

COVID-19 Update:

At RMS and associated firms, business continues as usual. Our staff is remote-capable and available to handle all partners, brokers, and insureds at the present time. Contact us today!Executive Order for Policyholder Payments