Top 5 Hidden Costs That Can Impact Car Payments – CARAFX

Think the price on the window of that car
is what you’ll pay? Think again. There are 5 hidden costs that can add hundreds
of dollars to that sticker price. Hidden Cost #1: State and Local Taxes Only three states don’t tax a car purchase
— so unless you live in one of those, figure on adding 4 to 7 percent onto the purchase
price of the car. Hidden Cost #2: State Motorized Vehicle Fees Tags, title, and registration fees are needed
to get you legally on the road and should be added to your budget. Hidden Cost #3: Dealer Fees Dealers charge fees to prep your car, process
the paperwork, and set up your financing for your car loan. It adds up – plan to add a few hundred
dollars to your budget. Hidden Cost #4: State and Local Property Tax Count on this one every year – it’s a
good one to permanently attach to your annual car budget. And Hidden Cost #5: Auto Insurance The newer the car the more the insurance cost
— the sportier the car the more the insurance cost. And if you take out a loan be sure to ask
your lender for the insurance coverage requirements. Then, talk to an agent to get the bottom line
costs to add to your budget. Be sure to calculate these top 5 hidden costs
into your budget before you make your purchase and save yourself 5 unwanted headaches. If you have any questions or comments, please
jot them down below. And make sure you follow us. We may answer your questions in a future video.

About the Author: Michael Flood

Leave a Reply

Your email address will not be published. Required fields are marked *