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What are the upfront costs when financing a car?
"What can I expect to be the upfront costs when financing a vehicle? I plan on financing a car but I want to get all the expenses straight."
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“In many cases, financing a vehicle doesn’t require you to pay any upfront costs if you don’t want to.
However, there are common fees that many people pay upfront rather than rollover into their loan, such as:
- tax
- title
- registration
In addition, many people put a 20%
down payment
on the vehicle to lower the amount of interest they pay over the life of the loan and to lower the monthly car loan payments.Both of these are smart moves to make when
buying a new car
, but many dealers won’t make you pay any cost upfront.”View full answer
- Gregory R.
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