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    Dealer fees: What to know and how to avoid them Advertiser Disclosure Advertiser Disclosure We are an independent, advertising-supported comparison service. Our goal is to help you make better financial decisions by providing you with interactive financial calculators and tools, publishing original and objective content. This allows you to conduct your own research and analyze information at no cost - so you can make decisions about your finances without trepidation. Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. How We Earn Money The offers that appear on this site are from companies that compensate us. This compensation can affect the way and when products are listed on this website, for example, for example, the sequence in which they be listed within the categories of listing in the event that they are not permitted by law. Our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews you read on this site. We do not include the universe of companies or financial offerings that might be available to you. SHARE: Photographee.eu/Getty Images
    3 min read published July 14 2022
    Writer: Rebecca Betterton Written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She specializes in assisting readers with the details of taking out loans to purchase a car. Written by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate since late 2021. They are committed to helping readers gain confidence to manage their finances by providing precise, well-studied facts that break down complex topics into manageable bites. The Bankrate promises
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    At Bankrate we aim to help you make better financial decisions. We are committed to maintaining strict journalistic integrity ,
    This post could contain the mention of products made by our partners. Here's how we make money . The Bankrate promise
    In 1976, Bankrate was founded. Bankrate has a long record of helping people make smart financial choices.
    We've earned this name for more than four decades through making financial decisions easy to understand
    process, and providing people with confidence that they can take the right actions next. process and gives people confidence in the next step.
    So you can be sure you can trust us to put your needs first. Our content is written in the hands of and edited by
    who ensure everything we publish will ensure that our content is reliable, honest and trustworthy. We have loans reporters and editors are focused on the points consumers care about the most -- the different kinds of loans available as well as the best rates, the top lenders, how to repay debt, and much more. So you can feel confident when investing your money. Editorial integrity
    Bankrate has a strict policy and rigorous policy, so you can rest assured that we'll put your needs first. Our award-winning editors and journalists produce honest and reliable content to assist you in making the right financial decisions. The key principles We value your trust. Our aim is to offer readers accurate and unbiased information. We have editorial standards in place to ensure that happens. Our editors and reporters rigorously fact-check editorial content to ensure that what you read is correct. We keep a barrier between advertisers as well as our editorial staff. Our editorial team does not receive any direct payment from our advertisers. Editorial Independence Bankrate's editorial team writes on behalf of YOU - the reader. Our goal is to give you the most accurate advice to help you make smart personal financial decisions. We follow strict guidelines for ensuring that editorial content is not affected by advertisements. Our editorial team is not paid directly from advertisers, and our content is thoroughly checked for accuracy to ensure its truthfulness. Therefore whether you're reading an article or a review you can be sure that you're receiving reliable and dependable information. How we make money
    There are money-related questions. Bankrate has answers. Our experts have been helping you manage your finances for over four decades. We strive to continuously give our customers the right guidance and tools required to succeed throughout life's financial journey. Bankrate adheres to strict standards policy, which means you can be confident that our content is truthful and precise. Our award-winning editors and journalists produce honest and reliable information to assist you in making the right financial decisions. Our content produced by our editorial team is objective, factual, and not influenced through our sponsors. We're open about how we are in a position to provide quality content, competitive rates and useful tools for you , by describing how we earn our money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We receive compensation for the placement of sponsored products andservices or when you click on specific links on our website. This compensation could impact how, where and in what order products appear within listing categories in the event that they are not permitted by law. This is the case for our mortgage, home equity and other products for home loans. Other elements, such as our own website rules and whether or not a product is available in the area you reside in or is within your personal credit score can also impact the manner in which products appear on this website. We strive to provide the most diverse selection of products, Bankrate does not include the details of each credit or financial item or product. When you've negotiated the price of your new vehicle, you may be surprised to find a final sales number that is hundreds, or even thousands of dollars higher than what you originally agreed upon. The bulk of these additional charges, or dealer fees, are mandated by law, for example, taxes, title and license fees. However, there are some fees that are entirely dependent on the dealer and can be negotiated . Dealer fees you can avoid and negotiate Not every cost the dealer can throw at you is non-negotiable or mandatory. Be prepared to reject unnecessary options and haggle the fees on the products you want. Vehicle or dealer preparation fee The preparation fee for a dealer or vehicle are extra charges that the dealer adds to get the car ready to be delivered. This includes washing the car, removing the "bump protectors" from the doors or getting rid of the protective covers for the floor or the seats. This can cost hundreds of additional dollars, and is important to be aware of. Tips to avoid it: U nless the dealer did something more beyond the basic preparation, do not to pay these dealer charges. Extended warranties and accessories installed by the dealer. These extra items are paid for when you make the sale but only if you requested these items and were able to prove that you're being charged a fair price for the item or service. They could include the stolen vehicle recovery systemsuch as LoJack paint sealant or an aftermarket system for sound or wheels . What to do when a dealer attempts to charge you for one of these products and you didn't request these items, you should not pay the associated fee. If you did ask them, shop around to make sure you're receiving a fair price since you could purchase the items once you own the vehicle. VIN etching also known as a vehicle's identification code, is the combination of 17 characters which identify your vehicle. The process of VIN engraving is to protect yourself. It etchs the number on the windows of your car. The cost can range from $150 and $300, which is why it's best to stay clear of this expense and manage it on your own. It's one of the easiest charges to avoid, so make certain to prepare to keep it from slipping through the cracks in your paperwork . How to avoid the cost: Say no to this fee and reduce costs by going directly to the body retailer for this service. You can also find a DIY kit online at a cost of between $20 and $40 . Extended warranty: This is an additional fee that can cover potential car repairs once the manufacturer's warranty on the car expires. But they aren't necessary for everyone. If you're worried about the cost of repair costs, it could be a good idea to reconsider the choice of vehicle. If it's worth the cost, consider other options instead of going blindly with the dealer's offer. Avoid: be sure to compare the price of this cost against the possibility that it'll actually be utilized prior to signing on it . Insurance for gap gaps Guaranteed Asset Protection, or , is an additional fee that you may encounter if you are leasing a car. It covers the difference between the price of the car and loan payment if the car is destroyed or stolen . What to do: nless you have a long loan duration and you do not put cash down, this charge is one you must avoid. Pay at least 20% on your down payment to ensure that it is unlikely that you become on the loan. Unavoidable dealer costs There are dealer charges which you aren't able to avoid, but you can prepare yourself for them . Tax as well as title and license costs The title and license fees cover the process that it takes to get a vehicle title and the license plate. The price tag attached to the tax amount will be based on the state's sales tax rate and cannot be negotiated . To learn more about the procedure for your state, go to the state's Department of Motor Vehicles (DMV) website. Documentation fee: The document fee is the cost for handling all paperwork that comes to a purchase of a new vehicle and is an expense you'll need to pay. Certain states have the fee in one lump item that is typically well less than $100. Other states have no particular requirements, so a dealer can charge whatever it wants. Takeaway: What you pay will vary based on the state in which you reside and the dealer you deal with. To get an idea of what's typical, look up local laws. Destination fee This fee covers the cost it costs the dealer to take the vehicle out of the manufacturer. Kelley Blue Book notes that these fees can run upwards of $1700. According to Edmunds, the time you pick up your car at the factory will not save you the destination charge -- you'll likely still be charged the full amount. The bottom line is that this fee can't be reduced and is an enormous portion of the cost. The bottom line: While there are some dealership charges that are necessary, knowing which can be reduced or negotiated altogether is the key to making savings when it comes to your next car-buying experience. Before you step into a showroom do some investigation and calculate prior to your visit to better comprehend .
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    This article is written by Auto Loans Reporter Rebecca Betterton is the auto loans reporter for Bankrate. She is a specialist in helping readers with the details of borrowing money to buy a car. Edited by Rhys Subitch Edited by Auto loans editor Rhys has been writing and editing for Bankrate from late 2021. They are passionate about helping readers gain confidence to take control of their finances with precise, well-researched and reliable facts that break down complex topics into manageable bites.
    Auto loans editor
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