You find a price on a car that you like, and then the dealer adds a load of extra charges. Some of these fees are standard and must be paid by law. There are fees that dealers will try to slip into the contract to make themselves an extra few dollars. You should be aware of these fees and your chances of removing them before you sign the contract.
Car registration fees are an amount charged by the state to cover the cost of registering the car, legal proof of ownership, and license plates. Dealers will provide this service for you with the money going to the state. You can also choose to go down to the DMV or registry office yourself.
Sales tax is charged by the state on top of what you pay for the car. It is roughly around 8 percent of the amount paid, as a maximum, but it varies from state to state.
This can be a fee that is attached to your sales contract by a dealership just trying to shake a bit more cash out of you. A handful of states regulate this type of fee by placing a limit on the amount that can be added. This fee can be negotiated down or, if they won’t budge on that fee, negotiate the sales price to offset this fee.
Dealers are charged by car manufacturers for advertising campaigns. These fees are a way for the dealers to get their money back for that expense. Most will refuse to negotiate or drop that price but it is certainly worth arguing the point if they try to charge more than $250. Buying through discount websites will help you avoid this fee.
Dealers can charge a fee, hidden under the banner of a few different names, which is aimed at the buyer to assist the dealer in fees he has to pay to car manufacturers for having the cars on his lot. This should be the dealer’s expense, not yours, and should be negotiated out of the contract.
This is a fee sometimes charged by a dealer for taking the plastic off the seats and cleaning the car to make it ready for you to drive. They can charge hundreds of dollars for what is only a couple of hours work. Again negotiate down, or away, this fee.
There is a charge to have your car delivered to you. This service does cost the dealership time and resources, but the price can be negotiated down to reflect their expenditure. Make sure they are not just trying to score extra profit. A drive-off deposit is a fee charged by some dealers for people picking up their own cars. If dealers refuse to drop or negotiate this bogus charge, then threaten to pull out of signing the contract.
