When you buy a car, there’s the sticker price, and the total price. The price you find on the window sticker of a car doesn’t include tax, title, or license (TTL) fees.
Why Not List Them on the Sticker?
Tax, title, and license fees must be paid on every vehicle sold, but they’re not listed on a vehicle’s window sticker because they vary widely. Sales tax varies by state, as do the fees for titling a vehicle. Registration fees also vary, as does how a particular state charges for them. Some states charge by vehicle weight, some by value or age, and some by a combination of two or all three. Other states charge flat rates for registration, but not necessarily each year.
Options for Paying Extra Fees
You have options when it comes to how you want to pay the TTL fees. Most often, especially with less than perfect credit, the recommendation is to make sure you have enough money saved to pay these fees up front.
If that’s not something you think is possible for you, there may be an option to roll these fees into your loan. You’ll have to talk to the dealer, however, because this practice is less common if your credit score is below 700. Know that if you do choose to roll in these costs, it’ll increase the amount of your loan, which also means increased interest charges.
Keep in mind that, as well as preparing your loan papers, the dealer files all the necessary paperwork with the lender and state for you. Because they take care of these services as part of the sales process, you’ll typically have to pay a documentation fee. The costs of this fee varies by dealer, but it’s typically capped by the state, limiting how much the dealer can charge you for this service. Even with the state caps, however, this fee can be hundreds of dollars.
When it’s Time to Buy
When the time comes to purchase your next vehicle, be prepared to take care of certain costs upfront. Coming to a dealership with a down payment and fees in hand will go a long way toward getting approved if you’re struggling with bad credit.
If you don’t know where to look for the right type of financing for your bad credit car loan, Auto Credit Express wants to help. We work with special finance dealers from coast to coast that have lending resources prepared to assist people in tough credit situations. Get the process started today by filling out our no-obligation auto loan request form now!