Hidden Fees to Watch Out for When Buying a Car
Buying a car can be a tiring process between finding just the right vehicle, planning your budget, and getting financing. When you’ve finally taken all of these steps, you probably just want to sign the paperwork and go home. However, there’s one more thing to think about, and that’s the hidden fees to watch out for when buying a car.
Fees You Can Expect to Pay
It’s an unfortunate fact that besides the cost of the car, there are some additional fees you’ll have to pay that aren’t negotiable. Examples include:
You may also have to pay a destination fee, which represents the cost of transporting the vehicle from the manufacturer. Dealers used to inflate this price and include it in the manufacturer’s suggested retail price, but the amount they can charge is now federally regulated. Your state may also require a vehicle to pass a safety inspection, and this may also be included in your fees.
Fees You Shouldn’t Have to Pay
The dealer may try to pass on added fees to you that shouldn’t be paid by you. These include:
The dealer may also try to sell you different types of insurance, such as GAP insurance or credit insurance. GAP insurance covers the difference between your loan balance and the value of your vehicle if it’s totaled or stolen. Credit insurance covers your loan payment if you become disabled, unemployed, or die. Even if you want this protection, you may be able to purchase it through your own car insurance company for less.
Being Proactive About Your Finances
It’s important to be proactive about your finances so that you don’t end up paying more than you have to or get charged for things you never wanted. Being proactive about your finances also means being careful to always pay your bills on time. Setting up your car loan payments on auto-draft can protect you from forgetting to make a payment.
Make sure the balances and payment record of your accounts is reported correctly to the credit bureau. If you find any errors on your credit report, dispute them right away. Dovly is an automated credit repair engine that can help you with this process. Try it risk-free with our free membership tier. Get in touch with Dovly today.