FAQ About Questions to Ask When Buying a Car

Yes, there can be various hidden fees associated with buying a car that you should be aware of to avoid any surprises during the purchasing process. Here are some common hidden fees to watch out for:

• Documentation fee: Also known as a "doc fee" or "processing fee," this fee covers the cost of preparing and processing the paperwork for the sale. It can vary by dealership and is typically several hundred dollars.
• Dealer preparation fee: Some dealerships charge a fee for preparing the car for delivery, including cleaning, inspecting, and fueling. This fee can range from a few hundred dollars to over a thousand dollars.
• Destination fee: This fee covers the cost of transporting the car from the manufacturer to the dealership. It is typically non-negotiable and can range from a few hundred dollars to over a thousand dollars.
• Advertising fee: Some dealerships charge an advertising fee to cover their marketing expenses. This fee is often non-negotiable and can range from a few hundred dollars to several hundred dollars.
• Title and registration fees: These fees cover the cost of transferring the title and registering the vehicle in your name with the appropriate authorities. The amount varies by state and is typically based on the vehicle's value and other factors.
• Sales tax: Sales tax is applicable on the purchase price of the car and varies by state. It is important to factor in the sales tax when calculating the total cost of the vehicle.
• Extended warranty or service contract: If you opt for an extended warranty or service contract, there will be an additional cost. Make sure to carefully review the terms and conditions and understand what is covered before agreeing to any additional warranty or service contract.
• Financing fees: If you choose to finance the car through the dealership or a lender, there may be fees associated with the loan, such as origination fees, loan application fees, or documentation fees.
• Dealer add-ons: Some dealerships may offer additional add-ons such as window tinting, paint protection, fabric protection, or extended roadside assistance. These add-ons come at an extra cost and may be presented as optional but heavily promoted.