Documentation fees : Generally between $100 and $500, depending on your state.Registration fees : Typically range from $50 to $300, although some states, like Georgia, charge as much as $2,465 on average.Sales tax : Up to 11% and varies by state.Here’s a breakdown of how much you can expect to pay in fees or taxes: In most states, you’ll have to pay sales tax and fees whether you buy a new or used car. When shopping for a car, pay attention to details other than the sticker price. The total loan amount you calculated for your car may not be the price you pay. Whether you buy a used or new car : New car loans tend to have lower APRs than used cars.Your loan term : This is how many months you’ll have to pay your auto loan off.Your credit score : This will affect the annual percentage rate (APR) on the loan and how much the bank is willing to lend you.The amount a lender will let you borrow depends on several factors, including: Once you’ve calculated your affordable monthly payment, you can begin to determine how much you can borrow. When calculating your monthly car payment and total expenses, try to keep your total costs to less than 20% of your monthly take-home pay. You can easily get car insurance quotes from companies to get a sense of what you’ll pay. Department of Energy provides a detailed list of fuel economy figures as well as a comparison tool that allows you to check different vehicles’ annual fuel cost estimates.įor auto insurance quotes, reach out to your agent or an insurance company you’re interested in. Both of these costs depend heavily on your situation, such as your location and driving history and the vehicle you’ve chosen. #2 Determine Your Fuel and Insurance Costsīefore you purchase or lease a vehicle, consider how much your fuel expenses will be and how much car insurance will cost. Choosing a longer loan term can help you get lower monthly payments, but you’ll pay more overall because of the additional interest that accumulates. Most loan companies offer terms between 24 and 84 months for used and new cars. Also, it’s important to be realistic about how long you want to make monthly payments.
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