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Taxes and fees when buying a car

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When buying a car, car buyers should understand that there are taxes and fees that come with it. Knowing the different fees and taxes when buying a car will give you an advantage as to what should and shouldn't be paid.

In this article, Philkotse.com will focus on the taxes and fees that you have to pay along with your car.

Destination charge

Destination fee is a straight pass-along fee, which means, every car buyer will have to pay it. This fee is the cost of the car delivery to the dealership from the factory.

Destination fee is usually shown on the window of the car and it is set by the car manufacturer. So this charge should be the same with all the car models of a brand.

Although destination fee should be paid by the car buyer, consumers should still be very cautious because there are car dealers who would sneak in additional charges for the delivery that is often itemized on the second window sticker alongside the official window sticker. If you see that there are additional “dealer preparation fee”, “delivery fee”, or “pre-delivery” charges on your final bill, tell the dealer that you refuse to pay them.

Processing and documentation fee

The processing fee is also the same with documentation fee. All car dealers including Acura Philippines dealerships charge the car buyer for the processing which covers the cost of the paperwork of the dealership. Usually, the processing fee ranges from Php 5,000 – 20,000 depending on the dealership.

It will be impossible to eliminate the processing fee; however, you can still negotiate with the dealer to reduce this charge. This is the same for both new and used cars for sale.

Advertising fee

Every car manufacturer charges the dealerships for the national advertising of the brand. The advertising fee is always included in the dealer-invoice price. Commonly, car dealers pass along a part of the expense to new vehicle sale or lease.

However, before paying for this fee, it should first be disclosed and agreed to. There are instances where dealers would list the advertising fee on a separate sticker posted in the window of the car. If you notice that there is an advertising fee in your final bill without them disclosing it, you can question the dealership and ask them to remove it.

In addition to learning about the Acura Philippines in advance to understand their pricing policy and latest promos, make sure to read into the details of the statement of the car as well before paying for it.

Extended warranty

Extended warranty is a dealership fee which car buyers are might need to pay. It is extra coverage for the needed major repairs of the car after the manufacturer's warranty expires. However, availing for extended warranty depends on the car buyer.

If you wanted to avail for an extended warranty, remember to purchase coverage which is backed by the manufacturer of the car or a trusted and established third-party company. Don't be pressured in buying extended warranty coverage on the spot, take your time to compare different contracts.

You might encounter different dealership fees such as vehicle identification number etching, fabric protection, and paint protection. These fees are optional and it depends on the car buyer if they would want to avail it. These are just extra and overcharged fees that you can get at a cheaper price in a local auto shop.

Besides a massive database of auto listings posted by reliable sellers nationwide, we also provide Acura car buyers with helpful information such as full-scale Acura car reviews by Philkotse.com auto experts and monthly-updated Acura Philippines price list covering estimated downpayments and monthly installments for your reference. Make sure to visit Philkotse.com every day to keep updated with the latest auto news!

Good luck with your car hunt!