The car, the car deal, and the math. Part 2

Posted: June 22, 2011 in Uncategorized

The calm before the storm.

We are almost ready to go shopping. The last thing to get a good idea about the actual numbers in a car deal. This sounds complicated, but in reality it’s fairly simple.

Any car dealership works like this:

  1. The price of your car is ——————————25000.00
  2. Sales tax is —(see notes below)———————–2325.00
  3. Plate fees are (see notes below)————————420.00
  4. Title fee is —————————————————4.50
  5. Registration fee is ——————————————8.25
  6. Postage fee is ———————————————–4.00
  7. Air pollution fee is ——————————————1.50
  8. Documentation fee (see notes below)—————– 489.00

9.   Total is ——————————————————28252.25

First note— Sales tax is different in every state, and in some states it’s also varies in different counties,  so you should find the tax rate for major purchases in your area. I found a quick site that allows you to simply enter the zip code for your area and get the tax ratio at—– —–           Once you have the tax ratio (mine in Scottsdale is 9.3% just multiply 25000.00 by 9.3% to get the sales taxes.

Second note — Plate fees are different for different states as well. You can call your local DMV for help or go to—   —this will give you an accurate amount for your plates, but it’s a set amount that is non negotiable, the money goes to the state. There is an option in some states to purchase new plates for more than one year when buying a car. This is completely up to you but remember that if you pay the extra money in the car deal, you will be paying interest on that money for the term of your loan. This does not apply if your purchase interest rate is zero. But that’s still ahead.

Here is our first point of contention in a car deal. The infamous “doc fee”. We’ve all seen it, every dealership has it, and it’s a small chunk of change. The doc fee is referred to as the documentation fee for the paperwork for your deal. The real truth in my experience is that the doc fee pays for the title work and registration of your car, and it also pays for the lights, the building, the gals behind the scenes working in back to do your paperwork, to transfer all the documents to insurance companies and banks and the DMV, and everyone else associated with your car. I have seen many customers work for hours to get every penny of profit taken out of a car deal, and then try to avoid paying the doc fee as well. While I understand that our goal is to get a great deal, we also have to remember our values in some instances. God loved us so much that he GAVE his only son so we might live. We are supposed to be cheerful givers as well. Paying the doc fee is a reasonable request for a “brick and mortar” store to ask for a reasonable service. There comes a time when cutting more money is not a good thing as Christians, and we should show a certain amount of generosity in everything we do or it will not be blessed or annointed. That is my view as a Christian.

More next time. If questions write me at


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