Taxes And Fees When Buying A Used Car -

The dealer, a patient woman named Sarah, gave a sympathetic smile. "It’s a great choice, Leo. But we need to talk about the 'Out-the-Door' price. That $15,000 is just the starting line." Leo’s heart sank as Sarah pulled out a breakdown sheet.

"Then," Sarah continued, "we have the . This covers the cost of transferring the legal ownership to your name and getting you those new license plates." She scribbled down $250 . "It varies by state, but you can't drive without 'em." Leo nodded slowly. "Okay, so we're at $16,300. Is that it?"

As he finally drove the silver sedan off the lot, the car felt amazing, but Leo had learned a valuable lesson: when you're buying a used car, the price on the glass is never the price on the check.

"First," she said, "the government wants their share." She pointed to the . "In our state, it’s 7%. That adds $1,050 to the bill." Leo winced. He’d forgotten that buying a car wasn’t like buying a used shirt at a garage sale; the tax man always stayed in the passenger seat.