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Common Car-Buying Mistakes: 4 Things You Should NEVER Do When Buying a Used Car

Buying a used car in today’s market is like trying to ride a unicycle in grass — difficult. If you’re uninformed, you could easily overpay, fall victim to predatory fees, or even end up with a clunker. There are common car-buying mistakes you can (and should) avoid, and this is especially true when buying a used car, since in most states there are fewer legal protections once you buy a used car “as-is.”

Here at CarEdge we want to make sure you’re an informed car buyer that gets a good car at a fair price, and that’s why we decided to list out our top four tips you can refer to during your car buying process. No one wants to get taken advantage of, and with these four simple tips you can make sure you don’t fall prey to common car-buying mistakes.

Without further ado, let’s jump in!

Car-buying mistake #1: Not getting a pre-purchase inspection

One of the most common car-buying mistakes you can make is not getting a pre-purchase inspection on a used vehicle. A pre-purchase inspection is a must, even if you’re buying the car out of state.

Some car buyers aren’t aware that you can request a pre-purchase inspection, others don’t think it’s worth spending a few hundred dollars to get one done. Our rule of thumb? Always get a pre-purchase inspection on any used car. This includes certified pre-owned vehicles. Why? Because the peace of mind is worth it.

Every state is different, but generally speaking, the laws protecting used car buyers are pretty unforgiving. In most states the laws surrounding “as-is” purchases don’t provide any recourse for buyers who end up with a clunker. The purchase was made “as-is,” and the seller is in the clear.

With that in mind, it should be obvious that getting a pre-purchase inspection is priority number one when purchasing your next used car. Skipping a pre-purchase inspection can be a costly car-buying mistake that could have been avoided. Plus, you can even leverage the results of the pre-purchase inspection when negotiating the purchase price of the vehicle.

For example, if your mechanic says that the car needs new brake pads and an oil change, then you can negotiate the cost of those repairs into the selling price of the vehicle. If you didn’t conduct the pre-purchase inspection, you would have been stuck footing the bill for those repairs yourself.

lemon squad pre purchase inspection

How should you go about getting a pre-purchase inspection? I am glad you asked! First and foremost, if you have a trusted mechanic, have them do the inspection. If you don’t have someone on standby (which is most of us), then we recommend a service called Lemon Squad. Lemon Squad is a national network of mechanics, and the reason we recommend their service is because they have been in business for a decade, and they have an “A” rating with the Better Business Bureau.

If the seller of the vehicle won’t let you get a pre-purchase inspection, that’s a sign that this isn’t the right car for you to purchase. If you were selling a car in good faith, wouldn’t you let someone get an inspection done? If they won’t, walk away. It’s not worth making this car-buying mistake only to get stuck with a clunker.

Car-buying mistake #2: Don’t rely solely on CarFax or Autocheck

All too often we hear from car shoppers that they purchased a car that had a clean CarFax, only to find out after the fact that the vehicle had been in a minor accident, or had undisclosed repair work done. How and why does this happen so often? It’s simple, CarFax is only as good as the data they receive, and the reality is, CarFax and Autocheck don’t get ALL the information about a vehicle, and when they do, it might not always be that timely.

How can you protect yourself from this reality? Fortunately, there’s a simple workaround!

Make sure to google the VIN of the vehicle you’re interested in before purchasing. I can’t tell you the number of times a quick Google search has brought up accident photos, auction listings, and more that paint a very different picture than the CarFax or Autocheck did. Also, call your insurance company and tell them you’re thinking about purchasing a vehicle. Give them the VIN, and ask them to run a report on their end (insurance companies have access to more information than CarFax and Autocheck do). By simply calling your insurer, you can get a more clear picture of the history of any vehicle. Neat, eh?

Doing a quick (but through) VIN check before you buy a used car can save you countless headaches down the road.

Car-buying mistake #3: You don’t test drive the vehicle

As a car shopper, you should have no fear of test driving one (or many) vehicles. Taking a car (whether it be new or used) for a test drive is something you absolutely should do.

Although not as effective as a pre-purchase inspection, test driving a car will also shed light on if it is in good working order, and more importantly, it will also help you determine if it’s the right car for you. As my dad used to say to me,  “the feel of the wheel can seal the deal,” and I think he is 100% right. It’s hard to commit to such a large purchase without at least first test driving a car.

Even if you’re getting the same car you already have (or have previously owned), it’s still important to take it for a test drive. No two used cars are exactly the same, and for that reason alone, it’s worth taking a test drive.

Car-buying mistake #4: You pay an additional reconditioning fee

We’ve written extensively about the fees you should and shouldn’t have to pay when purchasing a vehicle. The number of horror stories we’ve heard from shoppers who were charged for nitrogen tires, or a duplicative destination charge is unnerving. However one fee you should never have to pay on a used vehicle is an additional reconditioning fee.

If you are ever asked to pay a reconditioning fee that adds to the price of the car, refuse it! It is absolutely bogus.

Reconditioning is an industry term for the work a used car needs to get it “showroom ready.” This is simply a cost of purchasing inventory and preparing it for sale to a retail customer. With that in mind, if you ever see an additional “recon fee,” recognize that it is B.S., and remind the seller that the reconditioning should already be factored into the selling price of the vehicle.

Dealers have been known to tack on this fee, and it’s a car-buying mistake we’ve seen too many times before. Don’t pay for additional reconditioning!

Bonus tip! Car-buying mistake #5: Don’t overpay

Don’t overpay.

This may seem obvious, but do your best to not overpay. Cars are a commodity, which means there are A LOT of them.

Be diligent about checking market conditions for the car you’re considering purchasing. Make sure that the dealer you’re working with is not selling the car at a ridiculous markup. With our Market Price Report you can quickly see how negotiable other dealer’s similar vehicles are. Definitely take the time to do that before making your final purchase.

At the end of the day, it’s incredibly important that you get a fair deal. The best way to ensure that happens is to do a bit of research in advance of agreeing to an out-the-door price.

Car Dealership Fees: Which Add-Ons Are Legit, and Which Are Fake?

Car Dealership Fees: Which Add-Ons Are Legit, and Which Are Fake?

Dealership fees and add-ons can add up to hundreds and even thousands of dollars, but that doesn’t mean you have to pay them. It’s no secret that dealer markups are ruining car buying. This guide to car dealer fees will help you understand common fees, spot hidden or fake charges, and learn how to avoid them.

Common Car Dealer Fees

When purchasing a vehicle, it’s essential to be aware of the legitimate fees and taxes that make up the out-the-door price. These fees are typically imposed by the government and vary by state or local jurisdiction. 

Find out how much your next car will REALLY cost with this free out-the-door price calculator

Here’s a closer look at some of the most common legitimate fees and taxes associated with buying a car.

State & local taxes

Buying a car comes with a whole host of taxes. These include city, state, and county sales tax, personal property tax, and often a vehicle license tax, which has to be paid annually. These all vary from state to state, and in the case of sales tax, in even smaller jurisdictions.

Title, Tags, and Registration

In addition to taxes, there are a handful of other legitimate fees that are imposed by your local government. Title, tags, and registration fees are all par for the course when purchasing a vehicle.

The title fee is charged as a cost for the documents required to transfer the title, the cost for this fee can range from $4 up to $150 depending on the state.

Registration fees, charged to cover the cost of registering the vehicle under the buyer’s name, can vary wildly. Some states charge a flat fee, some charge based on weight, while others charge based on how old the car is. Our out-the-door price estimator will help you get a sense for how much your state’s registration fees will be.

Tag fees relate to the physical plates you need to carry on the vehicle. Again, this varies from state to state, but know it is another fee you should be prepared to pay.

Doc fee

Doc fees straddle the line of legitimate and illegitimate. Know that you can and should negotiate the doc fee with a car dealer. Also know that the dealer will never actually remove the fee from your buyer’s order, instead they will reduce the selling price of the vehicle by the same amount as the doc fee.

Doc fees change from state to state and from dealer to dealer. Many states cap doc fees to prevent dealers from exploiting them. For example you’ll never see a doc fee of more than $85 in California, whereas in Florida you’ll frequently find dealers charging upwards of $1,000 for a doc fee. In some states it’s the wild west.

Be Prepared: Car Dealer Doc Fees by State

How to Spot Hidden Dealership Fees

Read the contract carefully: Make sure to review the sales contract thoroughly and ask the dealer to explain any unfamiliar fees or charges.

Look for inconsistencies: Compare the fees listed in the contract to the fees mentioned during negotiations or in advertising materials. If there are discrepancies, ask the dealer to clarify or remove them.

Research online: Check out resources like CarEdge to get an idea of what fees are typical for your area and vehicle type. This calculator and this guide to doc fees are great places to start.

Need some help? Our Car Coaches are ready to assist today! Learn more about how to get started.

Fake Fees to Avoid

These are the most common hidden fees you shouldn’t feel pressured to pay:

Some dealership fees add no value to your car and should be included with every new and used car at no additional cost. These are essentially fake fees that solely exist to make the dealership more money. Always avoid these fees:

  • Vehicle Prep Fee
  • Dealer Prep for Delivery Fee
  • Pre-Delivery Service Fee
  • Pre-Delivery Inspection Fee
  • Reconditioning Fee
  • Additional Destination Fee
  • Cash up-charge

It’s very important to remember that these fees add no value at all to your car, whether new or used. All of these so-called services should be included in the selling price of the vehicle, no ifs, ands or buts. Having trouble negotiating fake fees? Our CarEdge Car Coaches are always here to assist. 

‘Almost Fake’ Fees

These car dealer fees add little value despite potentially costing hundreds or thousands of dollars. If you don’t want the product, these fees or ‘add-ons’ are always negotiable:

  • Etching – You can find it elsewhere for significantly less.
  • Nitrogen-inflated tires – The benefits are minimal, and air inflation works just as well.
  • Pinstripes – These are often overpriced and can be done cheaper elsewhere.
  • Paint protection – A wax job at a local shop will likely be more cost-effective.
  • Additional dealer add-ons – Beware of dealers trying to upsell you on unnecessary extras.
  • CarFax fee – If you’re engaging with a reputable dealer, there is no reason why you should have to pay for a CarFax or AutoCheck report.

👉 Know before you buy! Estimate your future insurance costs with our free car insurance calculator

The Complete List of Dealership Fees

All of these add-ons and dealership fees are negotiable. Not a single one of them is required, no matter what a salesperson tells you. They’re not like the taxes, title and registration fees that you should expect to pay.

Fee or Add-onCategory
Wheel LocksAccessory
Spash GuardsAccessory
Mud GuardsAccessory
Exhaust TipAccessory
PinstripesAccessory
Sun ShadeAccessory
Floor MatsAccessory
Connectivity KitAccessory
SAVY DriverAccessory
Trunk TrayAccessory
Pro PackAccessory Packages
KARR Security SystemCar Alarm Products
Fusion Security SystemCar Alarm Products
Diamond CeramicPaint Protection
Zaktek UltimatePaint Protection
Zurich ShieldPaint Protection
Nano ProtectionPaint Protection
CilajetPaint Protection
ClearshieldPaint Protection
Premium Exterior FinishPaint Protection
Advanced Ceramic TechPaint Protection
Enviromental Protection PackagePaint Protection
Carefree Paint ProtectionPaint Protection
Ziebart Diamond GlossPaint Protection
Door Edge GuardPaint Protection
Clear Door ProtectionPaint Protection
Clear Shield PackagePaint Protection
3M Protection PackagePaint Protection
Clear BraPaint Protection
Paint Pro FilmPaint Protection
Invisa ShieldPaint Protection
Key Care/Key ReplacementLost/Stolen Key replacement
Vehicle PrepDealer Fee
Dealer Prep for DeliveryDealer Fee
Pre-Delivery ServiceDealer Fee
Pre-Delivery InspectionDealer Fee
Reconditioning FeeDealer Fee
VIN EtchEtch Theft Deterrent
VTREtch Theft Deterrent
Theft Code ProtectionEtch Theft Deterrent
Courtesy GuardEtch Theft Deterrent
Express CodeEtch Theft Deterrent
Phantom FootprintEtch Theft Deterrent
Dent ProtectionExterior Protection
Ding DefenderExterior Protection
Appearance Protection Exterior Protection
ELO-GPSGPS Theft Deterrent
Spartan GPSGPS Theft Deterrent
SWAT GPSGPS Theft Deterrent
LoJackGPS Theft Deterrent
Theft PatrolGPS Theft Deterrent
Fabric DefenseInterior Protection Products
Interior All Weather Protect Interior Protection Products
NuVinAirInterior Protection Products
Caltex ReistallInterior/Exterior Protection Products
LuxCareInterior/Exterior Protection Products
Autobond SealantInterior/Exterior Protection Products
Xzilon Paint and FabricInterior/Exterior Protection Products
PermaPlateInterior/Exterior Protection Products
Paint and Fabric DefenseInterior/Exterior Protection Products
Allstate Paint and FabricInterior/Exterior Protection Products
Nitrogen FillTire Care
Solar Guard TintWindow Tint
Tinted GlassWindow Tint
Nano-Ceramic FilmWindow Tint
Smart Auto WindshieldWindshield Protection Coverage
Windshield RepairWindshield Protection Coverage
Crystal FusionWindshield Protection Coverage
DupontPaint & Interior protection
SimonizPaint & Interior protection
Diamond CoatPaint & Interior protection
Safe-Guard/TheftTheft Deterrent
US TheftGuardTheft Deterrent
Data Dots/Nano DotsTheft Deterrent
Theft PreventTheft Deterrent

Examples of Dealer Fees Negotiated

Our CarEdge Car Coaches help thousands of drivers negotiate better deals on their car purchases every month. We’ve seen it all! Here are three examples of ridiculous dealer add-ons and B.S. fees that we’ve helped to negotiate off of the out-the-door price. 

negotiate car dealer fees

Who on Earth would agree to pay $3,000 for a protection package when you could apply those same products for a few hundred dollars elsewhere? Overpriced paint and protection fees are always negotiable.

avoid dealership fees and add-ons

Some dealers seem to think that if you can afford a new truck, you won’t mind paying a thousand dollars extra for unwanted dealer add-ons. Always negotiate these fees.

this is not a legitimate dealership fee

Two grand for a safety and security package? Nope, nope and nope.

And then you have this… a whole slew of dealership fees and add-ons that are VERY hard to justify.

Toyota dealer fees

Remember, You’re In Control

You should never feel pressured to pay for something that doesn’t add value. Our #1 tip for negotiating car dealer fees is to enter the deal prepared and empowered with knowledge. By being prepared, thoroughly examining contracts, and negotiating wisely, you can minimize surprise fees and secure the best deal possible.

100% FREE Car Buying Help Is Here!

Car buying cheat sheet

Ready to outsmart the dealerships? Download your 100% free car buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!

Used Car Prices Increase 4.1% – With Julie Blackley of iSeeCars.com| Episode 13

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You don’t need to look far to realize that used car prices have been incredibly volatile over the past few months. Amidst the ongoing global COVID-19 pandemic, many aspects of life have changed, and the automotive industry has been no exception. Over the past few months we’ve seen supply shortages, once in a lifetime manufacturer incentive deals, and used car prices that defy reality.

It goes without saying that 2020 will certainly be a year we never forget for myriad reasons.

To better understand the true impacts the past few months have had on used car prices, the team over at iSeeCars.com, led by Julie Blackley, conducted a research study on used car price changes. Their findings? Both surprising and telling. A lot of vehicles have seen their values increase, while a select few have actually gone down in price (who would have guessed).

We highly recommend you take a look at the full report here, but in the meantime, we’ve distilled some of our favorite insights for you. Without further ado, let’s dive in.

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For cars, it’s a seller’s market. | Episode 12

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Today Ray and Zach discuss the state of the used and new car market. What effects will the end of government subsidies have on car prices? When should you buy your next new or used car? Is now the right time to buy? Ray and Zach answer these questions and more in today’s episode.

Axios Navigator: https://www.axios.com/newsletters/axios-navigate

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Deal School is officially live — negotiate like a pro!

What is Deal School?

Deal School is an entirely free online curriculum that is intended to teach you the bare minimum of what you should know before you buy a car. Taught by Ray and Zach Shefska, Deal School is two and half hours of video content, plus six quizzes to test your knowledge along the way. The goal of Deal School is to help you better understand the car buying process, and how car dealerships operate.

Why did you create Deal School?

Deal School was born out of frustration. Frustration that buying a car is so challenging. As the CarEdge YouTube channel began to grow, we realized that we could help a lot of people by simply organizing our content into a logical progression. With over 100 videos on YouTube, it can be hard to find the exact topic you are looking for. With Deal School, you can simply glance at the curriculum, find the topic you’re interested in, and jump right there. We created Deal School so that when people ask us “How can I negotiate a car deal?” We can simply link them to Deal School, and know that they are getting a good answer. We hope that if a friend or family member ever asks you about how you bought your car, you’ll tell them about Deal School as well.

What’s the catch?

There’s no such thing as a free lunch, right? So what’s the catch? If there is a “catch” it’s that you have to sign up with an email address to access Deal School. Otherwise, there is no “catch.” We’ve disabled advertisements on Deal School videos, so you won’t be interrupted by those. Instead, you should be able to click through video to video and focus on learning.

Why do we want your email address? Because in the not too distant future we are going to have products that we are going to sell. Those products will help you navigate the car buying process, and we’ll try to make money from selling them. If you sign up for Deal School with your email address, then we have a way to contact you in the future when we have products to sell (and other free resources too).

How long will Deal School be available?

There is no “expiration date” on Deal School. My dad and I will most likely need to update the course materials in a year or so (as dealership practices change), but aside from that, what you see is what you get, and it will be that way into the future.

What will I learn from Deal School?

Deal School is broken into six core lessons:

  1. How Car Dealerships Operate
  2. Initial outreach to the dealership
  3. How to select a car
  4. How to negotiate a car deal
  5. Choosing how to pay for the car
  6. What to expect in the F&I office

Each lesson has a varied number of topics within them. Topics have associated videos and course materials (blog posts, other video, other resources, etc.).

In total there are 50 videos that are a part of the course.

What if I want a different course?

As of right now, Deal School is the only course we have available. We’re very interested in producing more, so if you feel strongly about another topic (for example an entire course dedicated to financing a purchase), then please let us know. How should you let us know? Take a look down below!

How can I share feedback?

Your feedback is invaluable. CarEdge has become what it is today thanks to you. To share feedback with us about Deal School, please complete this short survey: https://caredge.com/deal-school/survey/