Are you in the process of buying a new car in Idaho Falls? If so, don’t be surprised when you pay a lot more for the vehicle than what is listed. There are a lot of fees that come along with the purchase of a new car, and it’s important to understand that upfront so you’re not shocked when you see the final price. Here is a list of some of the fees that you’ll encounter with your purchase of a used car in Idaho Falls.
- Documentation fees
These fees are usually to cover the cost of preparing and filing the sales contract and other documents involved in the sale. These fees vary by state – some states regulate these fees while other states may be unregulated, which means there are no limitations to the amount that the dealership can charge for these fees. The majority of the states do not have limitations on the doc fees. Florida has the highest average doc fee, which is $670, with Minnesota and New York having a limit of $75.
Some dealerships will add in other fees. Sometimes these fees will be called “Dealer Prep”, “Shipping”, “S&H”, etc. You might also come across an “Advertising” fee. This fee is usually a fee charged by the manufacturer directly to the dealer for doing national advertising, and the dealer is just passing that fee onto you.
This is going to be one of the largest fees that you pay when buying a new vehicle, for most people. The sales tax is all dependent upon the state that you live in and what the sales tax rate is. There are some states that don’t have a state tax, but there might be a local sales tax that is applicable. For example, if you live in Idaho and you buy a $25,000 vehicle, you will pay an extra $1,500 in taxes, at a 6% tax rate. If you are in an area that charges an additional tax, you could pay up to $2,250, at a 9% tax rate.
One thing to keep in mind when buying a car that offers a rebate is that you will most likely pay tax on the full amount of the car before the rebate is applied.
- Vehicle Registration Fees
Vehicle registration fees are charged by the state. These fees cover the cost to register the car, assign a title showing the ownership of the car, and costs to cover the license plates. Usually the more expensive the vehicle is, the more that you’ll pay in registration fees.
Before going out and buying yourself a vehicle, make sure you fully understand all the costs involved when buying a new car. The final price paid for a vehicle is usually not on the mind of the buyer, so be aware so you’re not shocked at the total costs for the new car. Good luck searching for your next used car from Idaho Falls dealerships!