Saturday, August 25, 2012

4:11 PM

Car Dealer Fees and Buying Costs You Should Look Out For
By James Adam J
Cars are quite expensive to purchase. Not everyone is able to purchase cars by saving little money every month. Moreover, when you purchase a car, there are always certain unexpected costs that nearly break the deal for you. These unexpected costs include hidden and general fees and buying costs of car dealers.
A lot of these costs and fees are legitimate, whereas many of them are just a way adding up more money to your purchase in order to mint money from you. The major question is which of these charged costs and fees are real ones and which just auto dealer scams.
There are always different costs associated, for example, the most common costs you will see are the amount of sales tax. This costs is self-explanatory and one which cannot be avoided at any cost. A very common issue is that often people fail to notice the fact the car owner does not need to pay sales tax rate as prevalent in the county or state of purchase, but where the car is issued the license. A lot of people mishandle their cars' sales tax just because of ignoring this simple fact.
Some states collaborate with each other in order to collect sales tax charges at the place where the automobile has to be licensed. But not all states follow this, which means you might have to pay the tax upon licensing it in your county and state. Hence, you will not have to pay sales tax to the car dealers.
If you have secured a car loan out of your own state, then tax will be added to your car purchasing contract. This happens because the lender wants assurance that the customer pays the tax. Hence, this not in any way additional fees from the car dealers, but is car purchasing costs that should be paid.
Another fees collected is called title and license. This cost is also self explanatory and is assessed by the state. In fact, this cost cannot be evaded by the car purchaser at any cost. The next common fee asked for is known as "Doc Fee", which is actually Documentation Fee. This is asked by the car dealers for processing your paperwork, contracts, and documents. This kind of car buying cost is directly regulated by the state that facilitates car dealer business. Some states have asked car dealers to charge only $100 on this account; however, many dealers go on to charging $800 and even more.
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