Car Dealership Fees: Which Add-Ons Are Legit, and Which Are Fake?

by Zach Shefska | Last updated Jun 30, 2025 | Car Buying, Dealership Operations, July 4th Deals

Dealership fees and add-ons can add up to hundreds and even thousands of dollars, but that doesn’t mean you have to pay them. It’s no secret that dealer markups are ruining car buying. This guide to car dealer fees will help you understand common fees, spot hidden or fake charges, and learn how to avoid them.

Common Car Dealer Fees

When purchasing a vehicle, it’s essential to be aware of the legitimate fees and taxes that make up the out-the-door price. These fees are typically imposed by the government and vary by state or local jurisdiction. 

Find out how much your next car will REALLY cost with this free out-the-door price calculator. 

Here’s a closer look at some of the most common legitimate fees and taxes associated with buying a car.

State & local taxes

Buying a car comes with a whole host of taxes. These include city, state, and county sales tax, personal property tax, and often a vehicle license tax, which has to be paid annually. These all vary from state to state, and in the case of sales tax, in even smaller jurisdictions.

Title, Tags, and Registration

In addition to taxes, there are a handful of other legitimate fees that are imposed by your local government. Title, tags, and registration fees are all par for the course when purchasing a vehicle.

The title fee is charged as a cost for the documents required to transfer the title, the cost for this fee can range from $4 up to $150 depending on the state.

Registration fees, charged to cover the cost of registering the vehicle under the buyer’s name, can vary wildly. Some states charge a flat fee, some charge based on weight, while others charge based on how old the car is. Our out-the-door price estimator will help you get a sense for how much your state’s registration fees will be.

Tag fees relate to the physical plates you need to carry on the vehicle. Again, this varies from state to state, but know it is another fee you should be prepared to pay.

Doc fee

Doc fees straddle the line of legitimate and illegitimate. Know that you can and should negotiate the doc fee with a car dealer. Also know that the dealer will never actually remove the fee from your buyer’s order, instead they will reduce the selling price of the vehicle by the same amount as the doc fee.

Doc fees change from state to state and from dealer to dealer. Many states cap doc fees to prevent dealers from exploiting them. For example you’ll never see a doc fee of more than $85 in California, whereas in Florida you’ll frequently find dealers charging upwards of $1,000 for a doc fee. In some states it’s the wild west.

Be Prepared: Car Dealer Doc Fees by State

How to Spot Hidden Dealership Fees

Read the contract carefully: Make sure to review the sales contract thoroughly and ask the dealer to explain any unfamiliar fees or charges.

Look for inconsistencies: Compare the fees listed in the contract to the fees mentioned during negotiations or in advertising materials. If there are discrepancies, ask the dealer to clarify or remove them.

Research online: Check out resources like CarEdge to get an idea of what fees are typical for your area and vehicle type. This calculator and this guide to doc fees are great places to start.

Need some help? Our Car Coaches are ready to assist today! Learn more about how to get started.

Fake Fees to Avoid

These are the most common hidden fees you shouldn’t feel pressured to pay:

Some dealership fees add no value to your car and should be included with every new and used car at no additional cost. These are essentially fake fees that solely exist to make the dealership more money. Always avoid these fees:

• Vehicle Prep Fee
• Dealer Prep for Delivery Fee
• Pre-Delivery Service Fee
• Pre-Delivery Inspection Fee
• Reconditioning Fee
• Additional Destination Fee
• Cash up-charge

It’s very important to remember that these fees add no value at all to your car, whether new or used. All of these so-called services should be included in the selling price of the vehicle, no ifs, ands or buts. Having trouble negotiating fake fees? Our CarEdge Car Coaches are always here to assist. 

‘Almost Fake’ Fees

These car dealer fees add little value despite potentially costing hundreds or thousands of dollars. If you don’t want the product, these fees or ‘add-ons’ are always negotiable:

• Etching – You can find it elsewhere for significantly less.
• Nitrogen-inflated tires – The benefits are minimal, and air inflation works just as well.
• Pinstripes – These are often overpriced and can be done cheaper elsewhere.
• Paint protection – A wax job at a local shop will likely be more cost-effective.
• Additional dealer add-ons – Beware of dealers trying to upsell you on unnecessary extras.
• CarFax fee – If you’re engaging with a reputable dealer, there is no reason why you should have to pay for a CarFax or AutoCheck report.

👉 Know before you buy! Estimate your future insurance costs with our free car insurance calculator

The Complete List of Dealership Fees

All of these add-ons and dealership fees are negotiable. Not a single one of them is required, no matter what a salesperson tells you. They’re not like the taxes, title and registration fees that you should expect to pay.

Examples of Dealer Fees Negotiated

Our CarEdge Car Coaches help thousands of drivers negotiate better deals on their car purchases every month. We’ve seen it all! Here are three examples of ridiculous dealer add-ons and B.S. fees that we’ve helped to negotiate off of the out-the-door price. 

Who on Earth would agree to pay $3,000 for a protection package when you could apply those same products for a few hundred dollars elsewhere? Overpriced paint and protection fees are always negotiable.

Some dealers seem to think that if you can afford a new truck, you won’t mind paying a thousand dollars extra for unwanted dealer add-ons. Always negotiate these fees.

Two grand for a safety and security package? Nope, nope and nope.

And then you have this… a whole slew of dealership fees and add-ons that are VERY hard to justify.

Remember, You’re In Control

You should never feel pressured to pay for something that doesn’t add value. Our #1 tip for negotiating car dealer fees is to enter the deal prepared and empowered with knowledge. By being prepared, thoroughly examining contracts, and negotiating wisely, you can minimize surprise fees and secure the best deal possible.

100% FREE Car Buying Help Is Here!

Ready to outsmart the dealerships? Download your 100% free car buying cheat sheets today. From negotiating a deal to leasing a car the smart way, it’s all available for instant download. Get your cheat sheets today!