Creating a budget for your car
Common fees for buying a car
- Vehicle registration. You’ll need this before you can legally drive your car on public roads. The registration is issued by your state’s agency and shows that you’re responsible for the vehicle.
- Insurance. Car insurance is required by almost every US state, and the type of coverage you'll need depends on where you live. Most states require you to have some form of coverage for injury and property damage.
- Taxes. Your car, like any other purchase, will be subject to your state’s sales tax. For states that charge it, you’ll need to pay the sales tax upfront whether you’re leasing, financing, or buying outright.
- Warranties. New cars usually come with a manufacturer’s warranty free of charge. This warranty lasts for a certain length of time or number of miles and covers problems with your car. You might get an offer to buy an extended warranty to cover problems with your car after the manufacturer's warranty expires.
- Upgrades. Buying a new car might give you the choice to add-on special features for a fee. These can include any upgrades, like anti-theft or vehicle tracking devices.