It is a smart idea to be prepared when buying a new or used car. Purchasing a car is a big investment and people are often surprised by the added cost of sales tax and other fees. Knowing the complete cost of a car will enable the buyer to budget appropriately.

Purchasing a car involves more than just taking out a loan or saving up the money equivalent to the sticker price. A car owner has to account for the cost of gas, insurance, maintenance, registration, and even fees and taxes that are added onto the price of a car. Many states have a sales tax that is applied to the purchase of a car, whether the car is used or brand new. All of these added costs can skew the buyer’s budget.

The easiest way to determine the true amount of money needed to purchase and own a car is to use a sales tax calculator. Sales tax calculators can be found online and are free to use. The tax calculators are programmed with each state’s sales tax amount, which makes it very convenient. This tool is especially helpful for first time car buyers and those living in states such as North Carolina, where all vehicles are charged an annual property tax.

Using an online tax calculator is very safe as nothing is saved. Multiple numbers can be used until sales amount shown for the desired car’s price is satisfactory. This will help provide an affordable price range to keep in mind when shopping for a car.

Being prepared prior to purchasing a car will make the entire process run smoothly and will prevent unwanted budget bombshells. Be sure to use the sales tax calculator before going shopping for a car so that there are no surprises once a car is chosen and the papers are ready to be signed.