Buying a car is costly, and there are also extra costs beyond the tag price you see on the car. Some of these expenses can surprise you if you are not well prepared. Therefore, it’s essential to do your homework to ensure you’re making a wise investment. Here are six expenses that you may face while purchasing a vehicle.

1.  Sales Tax

A sales tax applies to all vehicles, both new and used. How much you pay in taxes depends on where you work.

Almost every state has some sales tax, ranging from 2% to 8%. To find out how much you will owe in taxes and budget accordingly, consult your dealer or tax authority. You will still have to pay a special tax rate for your car even if the state you are in doesn’t charge sales tax.

2.  Fees for dealerships

Most of the dealers will charge you a paperwork fee. It is a fee for processing your paperwork. If they ship your car from the factory, some dealers often charge a shipping fee and a preparation fee to have your car ready (including a car wash and oil check). There might be an advertisement fee, which is supposed to cover the expense of selling a car from the dealer. Most of the dealership fees are negotiable. Therefore, learning how to pull off a deal to benefit you is a skill you need to know. It is an added advantage for you in reducing the cost.

3.  Title and Registration Fees

Unless it’s registered under your name, you can’t legally drive your car. That means you need to budget some money for license plates, registration, and the essentials title document.

The cost of registering a vehicle and getting a title varies by state. For instance, if you live in Illinois, the registration fee is $101, while the title fee is $95. Your price would be much smaller if you live in Kansas, as it’s just $35 for registration and $3 for the title. To determine your state’s costs, consult with your local Department of Motor Vehicles. You can search for more reviews on title and registration fees through

4.  Car insurance costs

Even though car insurance is unnecessary for most states, it is advisable to invest in it. You can be faced with huge expenses if you are involved in a road accident. Car insurance costs about $1,600 a year, on average. You only need to find an ideal car insurance provider in your state. You can learn more about the car insurance companies UK reviews on BritainReveiws.

5.  Fuel Costs

Gas can be costly, especially if you drive frequently and buy a low gas mileage vehicle. Your car will depend on the amount of money you pay for gasoline, as well as the road condition you live in and particular gas costs. Consider buying a vehicle with decent fuel economy ratings if you have a lengthy commute to work or travel out of town regularly.

6.  Maintenance service

Expect to pay cash for regular repairs such as oil changes and tire rotations if you buy a brand new vehicle. The older your car is, the more likely it is that you will have to pay for such maintenance, such as new tires, replacement batteries, and replacement windshields. You can also learn if these routine repairs are under protection by the car insurance cost.

The truth is that it is a considerable cost to own a car. You can prepare ahead and eliminate unwanted surprises down the road by taking the time to familiarize yourself with the hidden costs of purchasing a vehicle.