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How Much Will a new Car REALLY Cost?

Updated on September 13, 2012

There is not a person who has never asked this question either to themselves or spouse when considering a new car purchase. It is possible that the car could cost more than you thought or negotiated. The reason is because many features and fees for features are often not mentioned to the buyer until after all negotiations on the price have concluded.

The simple way around this dilemma is to ask the salesman for the "out of door price including any add-ons before taxes and license fees". This provides a base price to use for other deal comparisons. When you look at the contract in a purchase, there is a overall price before dealer discounts and rebates. This price should match the price on the sticker window, the MRSP. If they do not, the dealer has inflated the price and there is no discount. Many dealers collect the shipping cost of the car to the dealer by not listing it and passing it along to the buyer. Ask what the cost is, which could be $700 during price negotiation. Beware of dealer options or protection packages, which can add thousands. Today's cars need no rustproofing, sealant. If the contract indicates $600 for a protection package, challenge it. Beware of Dealer Fees often disguised as document or admin fees, which are nothing more than charges to process paperwork and car prepping. They can easily reach $1000. These fees are usually not revealed until after negotiations, so ask about them and how much right from the start. They may not be negotiable, but at least you will know. Advertising Fees can run hundreds and often passed onto the consumer, but why? Anything above $150 in charges should be challenged, otherwise, the dealer is ripping you off. Look out for Other Fees, miscellaneous things that you might not have agreed to like, nitrogen in the tires @$40-50 a tire!

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    • perrya profile image
      Author

      perrya 5 years ago

      I agree with both. Buying a used car, when totally checked out and talking with the previous owner, if possible, is a far cheaper way to go.

    • profile image

      mymoneywish 5 years ago

      There are some good tips here that's for sure, but I don't know if I would ever buy a "NEW" car again anyways, as my last 3 or 4 vehicles have all been previously used and loved and have served me just fine!

      I think there really needs to be a good reason (more than just the new car smell which you can buy for $2.99 as an air-freshener) to buy new. Car's today as you've stated last longer than they used to and are a lot more dependable.

      Good hub - you have a new fan and follower!

    • carol7777 profile image

      carol stanley 5 years ago from Arizona

      When cars are advertised at a specific price you know that by the time you are finished with sales tax, license and insurance you can add a few thousand dollars. People get taken in very easily. Good Hub.

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