5 Sneaky Expenses People Overlook When Buying a Car

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[@azppmd]

TL;DR: 1. Added warrantees and features. 2. Vehicle registration fees. 3, Insurance. 4. Maintenance and upkeep. 5. Vehicle depreciation.

[@laneyluneva]

Depending on state,city, and municipality...SALES TAX when you go to register. Ours was a $4k bill when we went to register, and we are in red Missouri. Oh, and depending on statewe have to pay annual personal property tax, which depends on the value of the car. Past December, we paid $600! And for cars that were 10 and 6 years old...

[@whobeyou5342]

Make sure to CHECK the offer the saleperson writes up. We went with our son when he purchased his first car- he told them very firmly he did NOT want warranty on upholstery (something like $500 fee) the salesman goes to "talk to his manager" came back, said great, "we have a deal, sign here" Son checks the itemized list and there was the $500 for warranty that salesman tried to sneak in for signature. We called him out - he scratched thru it. Bought the car and never looked back. Car sales is so scammy.

[@metaltera86]

Yes very scummy. Lots of car salesman like to justify their tactics and actually talk down on well-informed car buyers. Bought my recent pickup and did the same thing make sure no warranty or other BS fees. Just vehicle cost and state registration fees that’s it. Always read the entire itemized breakdown!!

[@penniephillipp936]

New Hampshire does not require insurance

[@scootsmcdoots80]

We have two vehicles that are cheaper than most people’s single vehicles. We do still have to pay insurance on both so that’s something I forgot to factor in at first.

[@SassySue67]

New Hampshire doesn’t require auto insurance

[@15KHPCLUB]

Explains all the hit and runs over there.

[@user-ui4uj8ws3]

You have to know what you want

[@perrycoffey5410]

State is probably Virginia or Massachusetts

[@avullrich]

Scotty Kilmore has a great YT channel to help you learn everything cars. I’m a single lady trying to understand cars better so I don’t get got. And his Chanel is awesome!

[@frankszczepanski1217]

Great channel, my goto for car knowledge.

[@perrycoffey5410]

Also Chris fix as well he's this generations car guy

[@melissasprayberry5047]

I paid my car off today !!! Early !! 🎉🎉🎉🎉 Tell Dave for me! 😊 Thank you !! On to the house !! Started at a very late age, but I’m going to do the best I can !!

[@larryeaton4263]

One very important point is that if you get a car loan, the lien holder will require loads of insurance. If you pay cash for a car, you can save a lot on insurance by raising deductible, and choosing to not carry collision and comprehensive coverage, which is not required by law. Check with your insurance agent about this. If the car has a low value it's just not worth it.

[@crow-vz5lx]

As a millionaire, I wouldn't want to buy a new car, even at that point. My ego wouldn't let me pay the huge mark up

[@rbraxton00]

I live in Virginia and you can pay a 500.00 fee at motor vehicles if you don’t have insurance. Not sure if that means you don’t need insurance, but I found that interesting.

[@eli-bt4he]

Technically there are two states that don't require car insurance. However, Virginia charges a $500 fee if you choose not to have insurance, so only a complete idiot would choose to go that route.

[@d.schmidt16]

And some states like Minnesota charge the annual registration tax based on pro rated age and value of the car. New cars, I think, are over $400 for 1st year registration, and after 10 years old, drops to about $60 per year.

[@hobbes1069]

Mississippi is similar. I bought a 2017 Chevy Bolt in 2023 and the tags were $250. At 8 years it drops to the minimum (about $36).

[@smellthelemons]

Where is yearly car registration $80-100? In Minnesota, the lowest is $35 but your car is likely 10+ years old at that point. My 2019 Chevy Blazer still has $250 fee to renew my tabs! The first year I went to get new tabs for it, it was somewhere in the $375-$400 range.

[@ron-je2yr]

Good info. Looking into getting an older used car for my 2 upper teenagers and teaching them all the costs of a vehicle (they're working part time so they will help with costs)

[@agneshumlicek1028]

LOL. Registration could be up to $200 in Omaha NE if it's a new vehicle

[@V8Brah]

99% of people should buy an EV because 99% of people don't enjoy driving or enjoy cars. For the rest of us, we're happy to pay the high fees to register, maintain, and insure our beautiful V8s, inline straight 6's, etc etc. It's simply a cool car tax. Hehe.

[@GnarlyCoyote]

Oregon is charging me 275 + deq fee to register my truck. $100 is not realistic.

[@RebeccaKeepper.eXpRealtor417]

Good tips on buying a car! Thanks Rachel

[@RobFromRI]

New Hampshire. Live Free or Die.

[@cleliaparnell8743]

😆

[@motoryzen]

You forgot to include the george carlin accent😂

[@lisamay1577]

Very good Rachel. All good girl!

[@rebeccaotis8056]

I bought a 2022 Toyota Camry brand new and a year and a half later I still have zero regrets.

[@jasonleatherwood2172]

In the republican state of tennessee its 24$. Year to register your cR i have 5 2 with full coverage and its 120$ a month to insure 5 cars 37 year old family of 4 lol all those demoncrat states it must be rough

[@better_together-w4m]

As multi multi thousanaire I love buying used cars. My frugality has made me appreciate smart purchases.

[@masonr1666]

Well, the way I figure it, I purchased a new car in 2020, the amount I paid on interest in the first years of the loan are like putting in repairs to a used car that an owner may have neglected. My plan is to drive the car for 10 years, so on average I am spending about $4,200.00 a year + interest. So, its like buying a used car every year for $4,200.00. The interest I am paying, is like the repair costs of a used car, as the interest lowers, more of my cash goes to making repairs. Is it ideal? No. But, at my income bracket ($23,000 per year), it seems to make the most sense, since it takes me the entire year to save up $4,200.00. [Note: I make extra payments to decrease the balance faster, and my car note is currently my smallest debt.]

[@teresamelville]

Good luck with your plan. I bought a used van 8 years ago and have spent less than $4000 on repairs over the last 8 years. You probably lost that much in depreciation when you drove yours off the lot. I have a paid for van, and money in the bank for repairs or an upgrade whenever I need it and my money is making me interest.

[@MadmaxMusic93]

What ever you say buying with just cash is a no go, it won’t help build up your credit score which is everything today. You all forget that tisk risk come on Rachel please 🙏

[@Danzilly]

Credit score is just a green light for more debt. Debt free allows you to buy any thing you want. Because you not giving your money away.

[@larryeaton4263]

Easy enough to build a credit score by paying things like rent, utilities on time. I got my first home loan without ever having any previous debt. It's bs that you have to borrow to establish credit.

[@justinbowman2126]

She didn’t forget, they don’t believe in having one

[@chessmaster1115]

ive lived my whole life without using any credit score but at same time i always payed my bills on time so i was never a risk to lenders if i needed money.