In a move that has stunned consumer advocates, the California Senate just passed a bill that would dramatically increase the fees car dealers can charge buyers. This comes even as lawmakers publicly pledge to address affordability in the state. Senate Bill 791 shows that many California lawmakers have other intentions.

On June 3, 2025, Senate Bill 791 passed with overwhelming bipartisan support. This bill would allow California car dealers to charge up to $500 in documentation fees, up from the current cap of $85. That’s a 500% to 600% increase in car buying fees, depending on the vehicle’s price. The bill still must pass the Assembly before heading to Governor Newsom’s desk.

“This is the opposite of saving money for people,” Rosemary Shahan, president of Consumers for Auto Reliability and Safety, told CalMatters. “It’s just benefiting car dealers at the expense of car buyers.”

Dealers Cite Rising Costs, But Critics Say It’s a Junk Fee

Supporters of the bill, including the California New Car Dealers Association, argue that inflation and new state regulations have made it more expensive to process transactions, including loan paperwork and DMV registration. They say the $85 cap hasn’t kept up with reality.

But opponents are calling it a “junk fee”, one that will quietly increase the cost of buying a car without improving the vehicle or experience for the customer.

“It’s amazing how lobbyist’s dollars can influence politicians to vote against their constituents’ best interests, ” said Ray Shefska, CarEdge Co-Founder and 43-year auto industry veteran. “This bill reinforces that in America, whether it be national, state or local, we have the best politicians money can buy. When things are already barely affordable, let’s by all means make it even more difficult for people buying cars in California.”

See which car buying fees are legit, and which should be negotiated.

Who Voted For It — And Why It Matters

Despite growing political attention on “junk fees” in everything from travel to event tickets, only one state senator voted against the bill: Sen. Henry Stern (D-Calabasas). He called out what he sees as a pattern of bad behavior from auto dealers, and said they “haven’t earned the trust to justify this major increase.”

Other lawmakers who voted in favor of the bill include:

• Sen. Dave Cortese (D-San Jose), the bill’s author, who acknowledged the fee increase isn’t ideal but says it’s needed to keep up with business costs.
  
• Sen. Brian Jones (R-Santee), the Senate’s Republican leader, who did not comment after voting in favor.
  
• Sen. Mike McGuire (D-Healdsburg), Senate President Pro Tem.

According to Digital Democracy, the California New Car Dealers Association has donated nearly $3 million to lawmakers since 2015, including $28,700 to Senator Jones, and $13,000 to Senator McGuire.

One Republican senator, Roger Niello, recused himself from voting altogether due to his family’s involvement in car dealerships.

Notably, the bill exempts state government vehicle purchases from paying the fee, even as everyday Californians would be required to pay it in full.

What Happens Next

The bill now moves to the California Assembly, where lawmakers are expected to negotiate its final terms. Cortese has hinted that the $500 cap may be reduced to win Governor Newsom’s support.

Still, with the average new car now costing $48,699, a 1% documentation fee could mean hundreds in extra charges for buyers already navigating record-high prices, interest rates, and tariffs.

At CarEdge, we believe buyers should know exactly what they’re paying for — and why. Hidden fees like this make it harder for consumers to make informed decisions and harder still to afford the car they need.

Speak Up Before It’s Too Late

If you believe car buyers deserve transparency — not hidden fees — contact your California Assembly representative today and urge them to vote NO on Senate Bill 791. Tell lawmakers that affordability means protecting consumers, not padding dealership profits.

Find Your Representative and Take Action Now

Your voice matters. Let Sacramento know: No more junk fees.

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