The total fees when buying a car typically add 10-15% to the vehicle's sticker price. Beyond the negotiated sales price, you'll pay for taxes, registration, a documentation fee, and potentially other charges. The single largest extra cost is usually the sales tax, which is a percentage of the purchase price set by your state and local government. It's crucial to factor these fees into your total budget from the start to avoid surprises at the dealership's finance office.
A breakdown of common fees includes the vehicle's MSRP (Manufacturer's Suggested Retail Price), which is the starting point for negotiation. The destination charge is a non-negotiable fee from the manufacturer to cover delivery to the dealer. The documentation fee (or "doc fee") covers the cost of preparing the sales contract and title work; its amount is often regulated by state law. You will also pay for title and registration fees to your state's DMV, which legally transfer ownership and license the car for the road.
Here is a sample table of potential fees for a $30,000 car purchase, though actual costs vary significantly by state and dealership:
| Fee Type | Typical Cost Range | Notes |
|---|
| Sales Tax | $1,800 - $3,000 | Varies by state/county (6%-10% common) |
| Destination Charge | $1,000 - $1,500 | Non-negotiable, set by manufacturer |
| Documentation Fee | $100 - $800 | State caps often apply; ask about this fee upfront |
| Title & Registration | $50 - $400 | Government fees for license plates and ownership document |
| Dealer Prep Fee | $0 - $500 | Sometimes negotiable; question its necessity |
Don't forget optional costs that dealers may offer. These include an extended warranty, fabric protection, or paint sealant. These are almost always profitable for the dealer and can be declined. Always ask for an Out-the-Door Price in writing, which is the final, all-inclusive cost. This is the number you should base your financing on, not the monthly payment.
