Whenever you are negotiating a car deal, always keep in mind the additional fees that will be charged. These additional fees are your closing cost. The closing cost fees usually include what is commonly referred to as TT&L or tax, title and license. Depending which state you live in, determines these fees and their amounts. Fortunately we in Texas still do not pay personal property taxes. Personal property taxes and car buying just do not mix in my estimation. I had the shock of my life when we moved from Texas to Kansas. I almost fainted when I went to the license office to change vehicle registration on my two autos. I was charged $850.00 for the Kansas plates and I was used to paying only $72.50 for both vehicles in Texas.

 State sales tax amounts vary by each state. Here in Texas, sales tax for an automobile is 6.25% of the sale price. I should add here that the days of claiming only a dollar for the sale price of an individual sale is a thing of the past. They look in a book now for the estimated value of said vehicle.

 Registration fees are for title purposes and also vary by state. It is my experience that the amounts charged are very reasonable, no matter the state.

 Another fee charged by almost every dealership is a documentation fee. The fee is charged by the dealership to cover their expense for filing all your paperwork with the state. I know the fee used to be reasonable, but thank you to the “cash for clunker” program, the dealerships around here have increased their DOC fee from $50 to over $120 per vehicle.

 Be careful here! This is where there are fees hidden into the deal that are never seen by you the buyer. Read your contract carefully and ask questions, especially if something doesn’t smell right. A few hundred dollars here and there for the next 60 payments at 6% interest adds up.