How Much Will A New Vehicle Truly Cost?

Government Fees

The final major category to be aware of when buying a new car is government fees, which can crop up in a wide range of contexts. The first one you’ll encounter is the tax on your new purchase. If the vehicle's sticker price is twenty thousand dollars and your state has a sales tax rate of six percent, you’re looking at an additional 1,200 dollars, raising the initial cost to 21,200 dollars.

The fees don’t end there. Once you buy the car, you’ll need to get it registered in your state and have the title transferred to your name. This action will come with a range of fees owed to the government, often more than one hundred dollars, depending on the state. At regular intervals, drivers will also need to renew their registration and driver’s license, adding to the government fees. Finally, there are additional fees (tickets and court costs) for drivers caught breaking any of their state's driving laws.