Looking to buy that car of your dreams but don't quite have the money to pay for it in full? If so, then you may want to consider applying for auto loan financing as a means of taking that dream car home while making comfortable monthly payments until it's paid off. Before you sign the dotted lines on a car loan contract, however, there are some possible hidden fees that you'll want to be on the lookout for.
On top of the sale price you end up negotiating with your car salesperson, you may also be responsible for paying for the cost of transferring your license plate and registration to the new vehicle. Some car dealerships will pick this fee up for you, but most will not--and the added expense is usually a couple hundred dollars at least. This can vary from state to state.
Local and State Taxes
Another cost that can really add on to the sale price of your new car is that of local and state taxes. Depending on where you live specifically and how much the cost of your car is, these taxes could easily tack on anywhere from a few hundred to a few thousand dollars. Unfortunately, taxes are non-negotiable because the dealership is entitled to show proof of paying them. However, you may consider figuring out the amount of your local and state taxes and then haggling to detract that cost from your vehicle sale price.
Negative Equity Charges
If you're looking to buy a new car when you still owe money on your old car, be careful. Even if your new car dealership claims they'll pay off your old car for you, there's a good chance that what they'll really do is add the money you owe on your old car to the principal balance of your new loan. In this sense, you'll still be stuck paying the remaining balance of your old vehicle on top of the cost of your new car, so be careful of these arrangements.
Finally, while interest rates aren't exactly a hidden cost, the total amount paid in interest over the life of a loan can be quite surprising. All too often, people shop for cars based on the sale price of the car without actually taking into consideration the total amount they'll pay by the time the car is paid off. Be sure to do your calculations before you decide you can afford a car; interest can add up to more than you'd think. Visit sites like http://www.automaxnm.com for more information on auto loans.