Although buying used car can be great for your pocketbook, you need to consider the extra expenses involved when purchasing a vehicle that already has a lot of miles. It’s not a bad idea to buy used, but you should understand the extra fees to expect when buying a used car.
The first and probably most important fee you may need to consider when buying a used car is for a mechanic. If you are not mechanically inclined, you should probably have a mechanic you trust check out the car before you purchase. Since most used cars are sold “as is” once you hand over the money and drive away you are stuck with the car even if it has major problems. Asking a mechanic to look over the vehicle is a fee well spent.
Another fee you need to take into consideration is sales tax, title, and registration fees. In most states you can look this information up online so you have an idea how much you will have to pay. If you are buying a used car you are probably on a budget and have a specific amount of money you can spend. Be sure to include these fees when you are adding up the total price of the car.
Fees that are optional will include an extended warranty or service contract. If you are buying the used car from a dealership the salespeople will probably try to talk you into purchasing an extended warranty. While this might sound like a great idea, you need to look carefully at the price and the fine print. Make sure the warranty will actually cover problems that might occur with your car. The service contract also may or may not be a good idea. Depending on what the contract covers, it may be cheaper to get your oil changed, your tires rotated, and your state inspection somewhere other than the dealership.
If you are planning to finance your used car consider the extra fees involved with getting a loan. Depending on how much you are spending, you will pay interest on the amount of money you borrow. You may also pay loan origination fees and document fees. If possible you may want to save up money and buy the car with cash or at least offer a hefty down payment. The less you borrow, the less you will pay in fees.
Search for used cars near you »
