It’s a smart idea to create a budget when looking for a car. If you want to buy a vehicle outright, figure out how much money you have available. Or, if you will be financing, think about what you can use as a down payment and what you can afford monthly.

But, when looking at used cars, you can’t just focus on the sale price. It’s important to know that there are other fees involved that you will need to factor in.

Sales Tax

While some states don’t have sales tax, Maryland certainly does. So, whatever the price is of the car you have your eye on, don’t forget to add our state’s six percent sales tax.

Vehicle Registration Fees

You’ll need the car’s title, along with new license plates when buying a car, and these are included in the vehicle registration fees.

Documentation Fees

There is a lot of paperwork involved with purchasing a car, and there is a fee to both prepare and file it.


Another expense you don’t want to forget about with your car purchase is insurance. While costs can vary based on the coverage you intend to get, the average car insurance policy in Maryland is about $1,000 per year. Adding that to your monthly expenses can help you find the right vehicle at the right price.

At I.G. Burton Chrysler Dodge Jeep® RAM of Berlin, we want our customers to get a great vehicle that best fits their budget. Come down to see us and we will show you any of our used and Certified Pre-Owned vehicles. You can also start figuring out your expenses with our online payment calculator.