3 Things To Know About The Real Cost Of Purchasing A Used Car

Car lots tend to write the car prices on the front windshield of the vehicles. The vehicles they put out front by the road are designed to offer great deals that make you think, "I want to purchase a car today!"

However, those prices on the windshields do not tell the whole story. Don't be surprised at a few costs that can raise the price you see on the windshield. The following can help you know what to expect.

#1 The Windshield Price

The windshield price is also called the base price of the vehicle. This is the price the vehicle is listed for sale as. This is the dealer's target price that they are charging you, and this is the price that you will negotiate over.

Your goal when you go to purchase a used car is to lower the windshield price. Most dealerships plan on you trying to negotiate the price of the vehicle, and even build in a little cushion for that purpose.

With a used car, there are lots of ways to negotiate for a lower base price for the vehicle. You can offer comparison pricing from nearby dealerships or compare the price to the online value of the vehicle to help get the base price down.

#2 Sales Tax

If you live in a state that has sales, keep in mind that sales tax isn't just for when you are buying clothing and other low-budget items. Sales taxes apply when you purchase big ticket items as well. On big ticket items, sales tax can really add to the price. If you live somewhere that has a sales tax between 6%-8% and you purchase a vehicle for $10,000, the sales tax would be between $600 to $800 extra dollars. Don't forget to calculate the sales tax when looking at a vehicle, or you could be in for a surprise when you see the final amount.

#3 Warranty Coverage

When you purchase a used car, oftentimes the dealership will try to get you to sign up for a used car warranty. Used car warranties are designed to provide extended coverage for your vehicle. The exact type of coverage provided can vary greatly. Usually though the coverage is focused on larger parts of your vehicle, such as the drivetrain or the transmission. The usage value of warranties can vary greatly, so read the fine print before agreeing to add warranty coverage. Warranty coverage could add anywhere from a couple hundred to an extra thousand dollars onto the purchase price.

When purchasing a used car, remember the windshield price is just a starting point. Always try to negotiate a lower price. Remember to add in the cost of sales tax to the property purchase. Finally, carefully read any additional warranty coverage that is offered to you to make sure it really provides you with a good value. Also, you need to be sure to add in vehicle registration costs as well.