18 June, 2019 0
toy car next to calculator, additional costs when buying a car

Unexpected Costs of Buying a New Car

Don’t forget about these additional costs when buying a car.

When people go car shopping, they often get so caught up in a vehicle’s sticker price that they forget that this isn’t the only cost they need to consider.  To ensure that you are not caught off-guard by the final price, be aware of these additional costs when buying a car.


Many car buyers forget that they will be subject to sales tax and, in some states, personal property taxes when they buy a car.  While this isn’t really a hidden cost, it is often overlooked, and car buyers forget to calculate taxes into their final cost.

Filing Fees

When you buy a car, you will encounter a number of additional fees that will be added to your final cost.  Some of the most common fees that you should expect include the following:

  • Vehicle Registration Fees– This is about the same as when you renew your car registration every year.
  • Title Fees– Covers the cost of registering or transferring the car title to you.
  • Documentation Fee– Car dealerships charge this fee to cover the cost of processing the paperwork related to your car purchase.
  • Emissions Testing and Compliance Fee– This fee covers the amount that the dealership had to pay to ensure that the car passed the U.S. emissions inspection when it was received.
  • Advertising Fee– Dealers will often charge this fee to cover the cost of advertising the vehicle. Keep an eye out for this fee because many dealers will remove it, but only if the buyer notices it.
  • Dealer Preparation Fee– These fees are included in the dealership paperwork and are said to cover the cost of shipping and handling the car when the dealership first acquired the vehicle.


Add-ons usually come into play when you are in the finance manager’s office.  Add-ons are a way for dealerships to sell customers things like warranties, additional forms of insurance, and so on.  Make sure that you listen carefully and ask qualifying questions, so you know what each add-on does and what it will cost.  Keep in mind that finance managers are still salespeople.  While an add-on might sound like a good value, it really might not be worth it for you.  So, use your best judgment before agreeing to add-ons.

Don’t forget about these additional costs when buying a car.  If you are buying a new car, then make sure you have the right auto insurance to protect it.  For assistance with all your car coverage needs, contact the experts at Fuller Insurance Agency in Southern California today.

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