The Hidden Costs of Buying a Used Car

Focus only on the sticker price and you'll get surprised at the county clerk's office and beyond. Here's what to factor in so your real budget is realistic.

At the point of sale

• Kentucky motor vehicle usage tax — charged on the purchase price or the car's value when you title it. On a used car this can add up to a meaningful amount.
• Title and registration fees at your county clerk.
• Dealer fees — documentation/processing fees at dealerships. Always ask for the out-the-door price so these don't surprise you.

Before you can drive it

• Insurance — required, and rates vary a lot by model. Get a quote before you buy.
• VIN inspection — if the car's coming from out of state (like across the river from Illinois), Kentucky typically requires a sheriff's VIN inspection, a small fee.

Ongoing ownership costs

• Kentucky's annual motor vehicle property tax — you'll pay this every year at registration renewal, based on the car's value. A pricier car costs more every year.
• Fuel — a thirsty engine adds up fast.
• Routine maintenance — oil, tires, brakes, fluids.
• Repairs — budget a cushion, especially on an older car.

The near-term repair cushion

Even a good used car often needs a little something soon after purchase — tires, brakes, a battery. Set aside a few hundred dollars for post-purchase items so they don't blow your budget.

Build the real number

Add taxes, fees, insurance, and a repair cushion to the sticker price, and factor the annual property tax into your yearly budget. That's the true cost — and knowing it keeps you from overextending.

Browse local listings by price with the full picture in mind.