Hidden Costs When Buying a Car

July 26, 2016
Posted by: admin10

Hidden Costs When Buying a Car

What are Some Hidden Costs When Buying a Car, Window Etching, Preparation Fee, Documentary Fee, Delivery Fee?

Buying a car can be very exciting, but there are many pitfalls. Even though you have haggled and agreed on a price that you think is perfect for the car you are buying, you must be prepared for the other additional costs. The sticker price is only a portion of the actual cost, since the additional costs can add hundreds or thousands of dollars to your car price.

Here are the top four hidden fees that you must be aware of when buying a car:

Window Etching:
The insurance companies encourage car owners to get their VIN numbers etched on the car’s window to prevent their cars from theft. Even though the VIN etching is a good measure to prevent theft, getting it done at the car dealership can be very expensive. So, if you don’t want to pay too much, check out the available options – the local service clubs or police departments offer window etching for free or a nominal fee. You can also get it done yourself with help of DIY etching kits.

Preparation Fees:
When buying a new car, you might have to pay two types of preparation fees namely – document preparation fees and dealer preparation fees.
Oftentimes, the dealer would say, they have to prepare the car for you to drive it out of the dealership. But new cars should be ready to drive when they arrive at the dealership from the factory. All they need to do is check the tires and fluids. So, unless it is a minimal fee, you must refrain from paying it.

Documentary Fees:
The dealer might also ask you to pay for preparing the documents. However, you must also not pay this fee, since documentation is part of selling the car and it is the dealer’s responsibility. All the paperwork must be provided to the buyers without any additional cost.

Delivery Charges:
The car manufacturers levy extra charges to ship the vehicle from the assembly plant to the dealership and this is also listed on the window sticker and included in the invoice. Car buyers consider this destination fee to be quite reasonable; however many car dealerships have also started levying extra charges, which they call the ‘delivery charges’ to increase their profit margins. This is in addition to the destination charges, which means you will be charged double for shipping the car.
So it is necessary that you check the invoice before making the final payment to check whether you are made to pay twice for shipping the car or not. If it is so, you must bring it to notice immediately and avoid paying the delivery charges.

Most car buyers focus on the car price and monthly payments and overlook the other important aspects. So in order to make sure you don’t pay excessive money, you must educate yourself about the associated hidden costs that can raise the car price considerably. In order to get the best car deal, you must avoid paying additional costs.

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