**How to Figure Title and License Fees**

Car dealerships are often vague about the DMV fees charged to a customer because there are many separate fees — most of them small and seemingly insignificant. However, these fees do add up, and you should budget for them ahead of time. You won't be able to compute these fees to the penny, but you should get an idea of what they will cost you.

In most states, the DMV fees are between 1 and 1.5 percent of the purchase price of the car. (In the second and ensuing years, these fees drop, and then, later, level off.)

To get the DMV fees for our example car, go back to the cost of the car + options + destination fee. Now multiply this by .01 or, if you're the conservative type, .015.

$21,095 X .015 = $316.43 for DMV fees Now we see that the $20,000 car has climbed to $23,099.02 once the sales tax and DMV fees have been added. Are you sure you can afford that car you're eyeballing?

**Figuring Auto Loan Payments**

Interest on the auto loan has to be computed using a complicated calculation called "amortization." Edmunds.com has created a calculator that can perform this calculation for you so you can arrive at your accurate monthly payment for the car loan.

For more information about how to use these financial calculators, read Take Control of the Numbers.