Tax and Fees

[Anonymous]

I negotiated a new vehicle to a price I was comfortable with. Sticker was 38k, got it down to 35k. Sales tax is 7% which is $2450. Yet with "Taxes and fees" I'm up to 39k. Am I being taken for a ride? What other fees are there on top of this? I feel like the salesman is just adding stuff on to make up for the price down.

[Anonymous]

The last car I bought was 26,500 and the taxes & licensing came to just over $3,200 so that sounds about right. You can always ask for a breakdown of the charges

[Anonymous]

Next time tell them you want that price out the door.

[jl4]

Taxes and Fees often also include licensing and registration, along with a documentation fee that the dealer adds on. This is a negotiable fee and while some states have low maximums for what it can be, some do not. 

A breakdown will show you exactly where it's all going.

[Anonymous]

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@jl4 wrote:

Taxes and Fees often also include licensing and registration, along with a documentation fee that the dealer adds on. This is a negotiable fee and while some states have low maximums for what it can be, some do not. 

A breakdown will show you exactly where it's all going.

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In my experience here in AZ dealers will literally insist on the Doc Fee but will very often lower the price of the car itself by the Doc Fee amount so while technically you are paying the Doc Fee, you really aren't. That works out fine for me because in AZ you pay Sales Tax on the car but not on the Doc Fee, so I actually save some money doing it this way. Once I even asked the dealer if they wold increase the Doc Fee to the agreed price of the car and give me the car for free so I don't have to pay ANY Sales Tax, but on that they refused.