Hidden Costs: What To Look For When Buying An Affordable Car
The Hidden Cost Of Buying A Car: Understanding The True Cost Of Car Ownership
You've saved for years, and the day has finally come. It's time to buy a new car! Purchasing a vehicle is a huge milestone and one of the most expensive investments you'll make. Western Slope Ford invites you to learn about the hidden costs of buying a car and what expenses you should look for as you begin your journey into car ownership. Hidden costs add up quickly, so it's essential to understand what you are paying for, how those expenses will affect your monthly payments, and how they impact the overall car price. The experts at our family-owned and operated Ford dealer in Grand Junction, CO, are here to give you the inside scoop as we help you get the best deal for your lifestyle and budget. With careful planning and research, you can make a smart buying decision and enjoy your new car. Find the right Ford for your family at Western Slope Ford.
Decoding MSRP & Sticker Price
The MSRP, or the vehicle's sticker price, is the suggested retail price of a car the manufacturer provides. This price is used at the point of sale. The MSRP acts as a baseline price to keep the cost of vehicles similar or consistent between dealers. However, dealerships are not required to use the suggested price at the time of purchase. The dealer's chosen sticker price serves as the starting point for negotiations, but being aware of the OEM-assigned MSRP can give you some idea of the value of the vehicle. Prospective buyers aware of the hidden costs of buying a car and doing their homework before heading to the dealership can sometimes negotiate a lower price to save money and avoid unnecessary charges. Below are some additional costs to watch for when buying a car. Take a look to save money before your next car purchase in Grand Junction, CO.
Dealer Fees to Be Aware Of
Documentation Fee
A documentation fee, or a "doc fee," is a charge from the dealer for obtaining a new license and registration, gathering paperwork, and drafting sales paperwork. This type of fee is typically non-negotiable. At Western Slope Ford, we strive to provide you with an honest and transparent purchase, and we will happily disclose these costs at your request.
Destination Fee
A destination fee is a fee the dealer charges for transporting your car from the factory to the dealership, regardless of the distance. Destination fees, sometimes also known as freight charges, can be expensive and non-negotiable.
Inspection and Emission Fee
In many states, a car must pass an inspection before it can be purchased. This type of fee can vary by state and provider; however, inspection and emission fees are typically not expensive.
Market Adjustment
When a dealer prices a car, they can raise the price over the manufacturer's suggested MSRP if the vehicle in question is rare or in high demand. Dealers typically do this when they know a vehicle will sell quickly. To avoid paying market adjustment fees, research the actual MSRP of the car to determine exactly what the dealer paid and how it implicates what you should expect to pay at the point of sale.
Finance Charges
Finance charges are standard fees associated with taking out a car loan, including interest, loan origination fees, loan payment fees, and other fees. Factors influencing car payments include loan duration, down payment, and interest rates. Dealers are not legally obligated to disclose this information to the customer at the time of purchase.
Taxes and Insurance: The Hidden Costs of Buying a Car
Sales Tax
Sales taxes are fees that vary by state, typically ranging from 2% to 8%. Sales taxes are not included in the sticker price but will be added at the time of purchase.
Car Insurance
Car insurance is mandatory in almost every state, with minimum coverage requirements that vary by state. Although it can be expensive, it is necessary and protects against accidents.
The Total Cost of Car Ownership
The total cost of car ownership includes the purchase price and hidden costs of buying a car like dealer fees, taxes, insurance, financing, and maintenance. Additionally, registration and title fees, which vary from state to state, should be considered separately as they are not included in the sticker price or MSRP. There can be additional costs of buying a used car as well, such as higher interest rates or maintenance costs. By understanding these costs, you can make a more informed decision, including the hidden costs of buying a used or new car. Western Slope Ford wishes to make this process as seamless as possible. Visit our Ford dealer in Grand Junction, CO, to find the best deal for your lifestyle and budget.
