You need a new car. You are ready to go the dealership for the car that fits your life. You have done the research and have the price that fits your budget. The salesman at the car dealership is about asking if you have a deal. There are answers you need to know before you say yes to the deal. By asking the right questions now, you can save time and aggravation later.
Are there other fees involved?
Another way to ask if there are other fees involved is by asking “What is the out of the door price?” When you are talking about the price of the car you are buying, up until this point, you are talking about the price of the car itself. This does not include the added fees that you are required to pay. This includes fees like documentation fee, registry costs, and sales tax. Some dealerships have other fees that are added in. Once you know what the fees are, there are some you can avoid, and some you can not.
How Much Are The Documentation Fees?
All dealerships charge a documentation fee when you are buying a car. This is the fee that the dealership charges for filling out the contracts. Every dealership does this, even if it does seem like a strange fee. However, it can change from dealership to dealership. Depending on the state you live in, there might be a cap on what the dealership is allowed to charge. Sometimes the fee can be as little as $100 but it can be as high as $600. If your state does not have a cap on the fee, and you feel it is too high, try to get the price of the car lower instead of trying to negotiate the document fee.
Are There Dealer-Installed Options?
Some dealerships sell cars that have dealer installed options. These are items that are added to the car, in addition, the factory installed options. When the dealership adds these options, it can increase the price of the car. Depending on the options, you may or may not want these options. One of the most popular add-ons is LoJack. This add on is usually included in the price of the car, but since it is a dealership add on, it can oftentimes be negotiated.
If you want to make sure the car you are buying stays in your budget, it is important to talk to the dealership about the “Out of the Door Price.” If you know all of this information before you are done making the deal it can save a lot of time and hassle.