A List of Some Hidden Costs You May Not Expect to Pay for a Vehicle
You are ready to purchase or lease a new vehicle. After spending time doing your research and starting your search with a budget in-mind, you may feel that you’ve covered all your bases. However, the lone price on a vehicle may not be all that you have to pay. To help those in the Lubbock, TX area, Matador Motors covers some of the hidden costs to purchasing a fresh ride.
Sales Tax Varies from State to State
As a major portion of hidden costs, buying a new vehicle (brand-new or new to you) will have sales tax added on. These rates can fluctuate and differ across each state you may buy from. Currently, Texas has a 6.25% sales tax on vehicle transactions (though you should always consult a dealership for the most updated information).
Registration, Title, and Dealership Fees
As an added measurement, you will likely have to pay several fees for your new vehicle purchase. Legally, vehicles must always be registered with the state, and – if it is yours – must be in your name. This process includes license plate fees and titles upon purchase. Dealerships also often include a documentation fee for filing and processing your paperwork to legalize the sale. This may include a delivery charge or last-minute service checks.
Car Insurance Fluctuations
While this is often associated with those upgrading to a newer or more powerful vehicle, people will also have to be aware of potential insurance costs. Insurance companies will evaluate coverage based on a number of factors, which include:
- Model year
- Engine and vehicle type
- Driving History
The first two details will likely change when you upgrade to a new, more valuable vehicle. In turn, this will mean it will cost more to cover any potential damage to your vehicle.
Purchase Your Next Vehicle with Matador Motors
When you start your vehicle search and see the bolded final price on your vehicle, it’s always best practice to ask for all the financials first. Matador Motors wants to help you be ready in case the number you expected is more than once thought. You can get around the exorbitant fees by purchasing used. Stop into Matador Motors and we’ll work with you to get you into your next vehicle!