Are you in the market for a new vehicle? If so, your biggest concern is wading through bogus deals to find a car that offers the maximum value at the minimum cost. The last thing you want to do is pay an arm and a leg because of misleading price quotes that may not reveal accurate figures right at the outset of the purchase. Once you’ve haggled with your dealer and arrived at a price point you’re happy with, it’s important to bear in mind that other auxiliary costs await you.
A vehicle that retails for $50,000 can well end up dinging your finances to the extent of $55,000 through hidden fees. To understand exactly what you’ll be spending at the close of the deal and after, it’s crucial to refer to a reliable car invoice report. This will help immensely – not only in car price comparisons but also understanding all the hidden costs associated with your new car.
Here the five hidden fees that you should be privy to before you set your sights on your next ride:
- Registration and Licensing Fees
This differs from one province to another and one vehicle to another. Ranging anywhere from $50 to $500, each province levies its own licensing and registration fees. For the most part, these fees remain unchanged regardless of the vehicle. However, there are cases when the fees may vary drastically from one car to another depending on the price point, year, weight and taxable value of the vehicle along with the driving record of the owner.
If you’re purchasing a used car, you will need to register it within 6 days at a ServiceOntario centre from the date of purchase. When purchasing a new car, your dealer will take care of the registration for you. Apart from this, retail sales tax is also applied to the transaction and will have to be paid when you register. If you have outstanding fees attached to the license plate, these will be added to the overall fee.
- Insurance
Car insurance is quite a hefty fee and in most cases, even trumps other monthly payments on your car. Your average insurance policy can be around $200 per month. This cannot be avoided as it is the law to have auto insurance before operating your vehicle. Depending on several aspects such as the model of the car you want to purchase, the city and province you live in, your insurance provider and your and your family’s ages and driving records, the premium you pay for liability, collision and comprehensive insurance will fluctuate. This is definitely something that you want to give due thought to before you set out to purchase your car.
- Maintenance and Repair Bills
As any car owner knows, car maintenance bills can lead to a lot of financial distress, especially when these accumulate over time. These can skyrocket to as high as $500 – $600 every three months. Repairs are unpredictable as they are inevitable, and that’s not counting the routine maintenance that has to be carried out to ensure your car remains in tip top shape.
Being that the maintenance costs on modern cars aren’t as high as on older cars, most manufacturers have expanded their warranty coverage and offer free repair services for a specific period after the car has been purchased. With this in mind, it is important to assess whether holding on to a car for a long period will reap a more beneficial projected maintenance and repair outlook after the warranty expires. The general rule of thumb is to go for a vehicle that has a reasonable warranty period to cover future bills and also opt for a model that is cheaper to maintain. Be sure to inquire about the extended warranty on your car and what it will and will not take care of.
- Tolls, Parking and Anti-Theft Add-ons
This is a crucial factor to consider prior to purchase. Depending on where you reside, parking and toll fees can be exorbitant. Upwards of $100 per month can be accounted for in parking charges for those areas where it’s much harder to find parking. Additionally, if you want to opt for various add ons, such as an anti-theft feature, you will be shelling out way more than you bargained for during the initial purchase.
- Fuel Economy
Gas prices, being as unstable as they are, are a serious investment. It is highly advisable that you make yourself aware of the fuel consumption of the vehicle you’re interested in purchasing and then assessing whether that fits with your budget. Depending on the size of the tank, different cars will consume fuel at different rates. If you make a smart and informed decision about the ideal car for you, it could potentially save you a bundle on gas money.
Want to know exactly how much you’ll be investing in your new car? Request an invoice report from Car Cost Canada today to ensure that you’re not on the losing end of the transaction.