BEWARE! DEALERSHIPS MAY SNEAK IN THESE 5 HIDDEN FEES WHEN YOU BUY A NEW CAR
Buying a new car is an exciting endeavor–there’s nothing more fun than driving off the lot in a shiny new set of wheels where the smell of new car leather fills the air around you. But before you get to that point, a lot of paperwork has to take place, and if you are too focused on the prize, there are fees that dealerships tack on to the final price that you need to be aware of.
Next time you’re car shopping, watch out for these tricks to ensure you get the best deal on your new ride.
“Dealer Preparation Fee”
After you buy your new car, the dealer will wash it, remove the bumper protector plastic, dispose of the protective coverings for the seats and floors, and charge you for it. They call it “dealer preparation fees,” they can add a few hundred dollars to your total price.
To avoid this fee, ask for clear explanations of what they cover under that charge, and if it’s something you can do yourself, ask them to leave it off. I would personally prefer to “unwrap” my new car and gain the satisfaction of completing the unwrapping on my own.
“VIN Etching Fee’
Some cars have the VIN etched into the glass of the windows. This is to prevent theft because if your windows and car parts are engraved with the vehicle’s VIN, thieves find it harder to resell the stolen parts. While this may be a valuable feature, dealerships often overcharge for this. If the windows are already etched, you can ask them to waive the fee, or if they still need to be engraved, you can opt-out or purchase a DIY kit and do it at home.
“Your Financing Fell Through”
Imagine driving off the lot in your new car, thinking everything is fine, and then receiving a call from the dealership days later informing you that your financing fell through. This is known as yo-yo financing, and sometimes dealerships will let you leave the lot without finalizing financing.
You think that everything will go through just fine but then have to renegotiate the terms of the loan and end up with a worse deal than you initially agreed to. You can avoid this trap by getting pre-approved for a loan from a third-party lender before beginning your car shopping.
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“We’re Calling About Your Car’s Extended Warranty.”
Believe it or not, you do not have to go home with the dealership’s extended warranty plan. Dealers will pitch these policies along with prepaid maintenance plans under the guise of “peace of mind.”
Most of the time, you won’t use the extended warranty on a brand-new car, and you will have paid the fee for nothing. Instead, you can do your research and buy a car with a great reliability rating and talk to your car insurance company if you are concerned about future repair needs.
“The Trade-in Trap”
If you want to trade in your old car and buy a new car in the same transaction, dealerships may inflate the cost of the new car to eat up the money that they’ve agreed to give you for your trade-in. To avoid this, you can separate the transactions, get cash for your old car, and then proceed to negotiate the terms of your new car.
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2023-10-02T22:31:48Z dg43tfdfdgfd