The Hidden Costs Incurred When Buying a Car


Each and every person in the universe may want to live a luxury life. Having a car which you can drive at any time to your preferred places at your convenient time is the best feeling ever,going out with your friends and family members.

Buying a car is very expensive though most of the people may not be aware , and there are often additional expenses to be considered beyond the sticker price. Some can take you by surprise if you’re not prepared for them. Before getting up your mind to purchase a car you need to be aware of the following hidden costs.

According to Policygenius, the following are some of the hidden costs incurred when buying a car

Finance charges - Unless you buy a car in cash, you’ll have to take out a loan, which include financing charges. These are the actual charges for the cost of taking out the loan, based on the interest rate.

Sale tax-All cars, both new and used, are subject to a sales tax. How much in taxes you pay depends on where you live

Registration and title fees-you can’t legally drive your car unless it’s registered in your name. This means dishing out some money for registration, license plates and required title documents.

Dealership fees-Most dealers charge a documentation fee. It’s a processing fee for them to do the paperwork.

There are also insurance costs, fuel costs and maintenance costs which must be catered for while buying a car. Those are some of the hidden costs.