What gets added to the price
- Sales tax
- Charged by your state and often by the county or city, usually as a percentage of the price. Many states reduce the taxable amount by the value of a trade-in; rules on rebates and trade-ins differ from state to state.
- Title and registration
- Government charges to put the car in your name and register it. Set by the state, and they can depend on the vehicle's value, weight or age.
- Documentation (doc) fee
- Charged by the dealer for preparing the paperwork. Some states cap it; others don't.
- Destination charge
- What the manufacturer charges to ship a new car to the dealer. It usually appears on the window sticker.
- Dealer add-ons
- Extras such as paint protection, nitrogen-filled tires or etching, sometimes pre-installed and pre-priced. Ask which are optional.
- Optional products
- Service contracts (extended warranties), gap coverage and similar products. They're optional, and if you buy them they're often added to the amount financed.
The amounts vary too much by state, dealer and car to list here. Ask for an out-the-door price — every charge itemised — before you talk about the monthly payment.
Paying fees up front vs. financing them
Anything added to the loan is charged interest for the whole term. At 7 % nominal annual, financing these amounts costs:
| Added to the loan | Payment increase · 60 mo | Payment increase · 72 mo | Extra interest · 60 mo | Extra interest · 72 mo |
|---|---|---|---|---|
| $500 | $9.90 | $8.52 | $94.04 | $113.76 |
| $1,000 | $19.80 | $17.05 | $188.07 | $227.53 |
| $2,000 | $39.60 | $34.10 | $376.14 | $455.06 |
| $3,000 | $59.40 | $51.15 | $564.22 | $682.59 |
For example, $2,000 of add-ons over 72 months raises the payment by only $34.10 — but adds $455.06 of interest on top of the $2,000 itself. A small change in the payment can hide a larger change in the total.
Check what you're paying for
If an offer's payment seems high for the price, extras may be inside it. Work out the rate from the car's price with «Find the rate»: if it comes out above the rate you were quoted, something else is being financed. Our guide on finding the rate in an offer shows how.
The calculator's «Compare car payments» mode can include sales tax, fees and a trade-in, so you can see their effect on the payment and the total cost.