Hello, I'm thinking of buying a car soon, something
not too expensive. I was wondering how much
would I need for fees and stuff?. Im thinking of
$500 down payment.
If you buy from a legitimate Dealer, their Fees should be limited to Tax, Tag and Title. You can do all these yourself at your Local DMV for minimal Cost - understanding your States Sales Tax may be high or reasonable. SC is 6% with a Cap of $300.00, ie, the most expensive car before you max out at $300.00 is a $5000.00 Car. Dealer will try to tell you how much time it takes and the hassle at the DMV. (Is your time worth $100.00 per hour or so?) My Wife and I buy 1 - 2 Cars a year through Cargurus.com. I'm retired and have a car hauler so it's no problem to drive wherever we find a car we like. For some strange reason, I find a lot of our cars in Ohio - don't know why! I REFUSE TO BUY FROM A DEALER WHO CHARGES "DOC FEES"! If you went to WalMart and bought something for $100.00 but when you went to check out they said they had an "Admin Fee" of $30.00 to increase their profitability, what would you do? You'd probably tell them they're out of their mind!! My Wife found a BMW in Charlotte, NC the other day at "Adams Auto Group". Average Price - not a "Great Deal" according to CarGurus.com but we are Cash Buyers and would have "Pulled the Trigger"; HOWEVER, "Everette". The Owner, said He had a $599.00 Doc Fee, a $225 Admin Fee, and other miscellaneous Fees! If He has ANY Buyers, they are Idiots!! This is nothing but Dealers trying to make their "No Haggle Price" look good but then really gouge you with Fees. Shop around! There are Honest Dealers out there that know Title Work is a Cost of doing Business and have this included in the price of the Car - and not $599.00 +! One other piece of advice: If you have access to a "Credit Union" near you, open an Account!! No Bank can Match their Car Loan Rates! And, Never, Never, Ever, let the Dealer Finance your Car!!! They get a Kick Back from the financial Institution and you pay a Higher Rate! I'm 68 and this "Ain't My First Rodeo"! Good Luck!!
Hello ErnieSC, Thank you for your input, its greatly appreciated. I had a couple of follow up questions. If I choose to pay for tax, tags and title at my local DMV, then I would only pay the dealership the promotional price of the car? And Unfortunately, I would have to finance a car, how would you recommend I go about this?
You can finance through the dealership or your own bank or credit union, which I would recommend. How much are you financing and the amount? Lending institutions will give you an auto loan for usually a certain amount for the model year of the car. If the finance amount is low, you most likely will be obtaining a personal loan.
As far as "how much down" is concerned, it is up to the financial institution you are financing through. It takes into account credit score, the book value of the car compared to amount financed, as well as a few other factors. Fees are purely up to the dealers discretion. Some have insane fees (499 and up) while others charge less or nothing at all.
I stopped buying new cars after 3. I only buy cars from private parties after looking high and low. A dealer makes his money off his add ons like this fee and that fee. Steer clear of dealers is my advice. Try for a local bank loan. If you have ANY credit whatsoever for at least a year or more and you have a good monthly income you should qualify. The tax and title fees are minimal if you pay them yourself. And yes, Ohio has tons of used cars for sale either at the side of the road or on CraigsList. Just be sure to take someone along that can check it over for you. I have been pretty lucky here in Ohio with cars. Seems though that a lot of cars have been eaten out with rust from the sodium chloride (liquid salt) they use on the roads in winter here. My 94 Jeep rusted out in the front portion of the frame and I had to junk her. Last winter was a real killer diller with the sodium chloride on the roads....and a lot of cars on CL show the rust holes in the body. Steer clear of Fords as they rust out bad. A friend has a 2000 Sable that is rust city but only has 124K on it. My 98 Civic has no rust to speak of on the body and very little on the frame. Steer clear of Fords and any Ford product if you want to keep the car more than a year. Chevys up here are rust buckets...even the newer ones. The newer Fords are rust buckets. I think it's something in the inferior steel and paint they were using.
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