Other than sales tax, here are some additional fees that you might be responsible for when you purchase a vehicle: Destination: The destination fee covers the cost of a vehicle’s shipment from the factory to its point of sale, which is usually a dealership. Dealer documentation: The dealer documentation fee covers the cost of administrative tasks associated with a car purchase. These might include checking trade-in values, preparing the sales contract, registering the vehicle, issuing license plates and filing any other necessary paperwork. Title and registration: The title/registration fee covers the cost of registering a vehicle in your state and is usually owed on an annual basis. You might also be required to pay an annual registration fee to the town or city of your residence. Insurance: Car insurance is required by law and covers the cost of injuries and property damage that you cause if you are found at fault for an accident. There are also additional coverage types that you can include in your policy that will increase the cost of your premium, which can usually be paid monthly, semiannually or annually. Like sales tax, the destination fee, dealer documentation fee and initial registration fee can usually be included in your loan or paid separately.