Never Pay These Fake Dealership Fees

Dealership fees add up to hundreds and even thousands of dollars. However, that doesn’t mean you are required to pay them. Unsurprisingly, customer satisfaction with the vehicle purchase experience is declining. Forced add-ons and dealer markups are ruining car buying. In fact, several car dealership fees are outright anti-consumer tactics to squeeze a few extra dollars out of you. With negotiation know-how, car buyers should push back against fake dealership fees, and stay in control of their deal. Let’s take a look at the legitimate fees you can expect, and the fees and add-ons to never pay a car dealership.

Legitimate Dealership Fees and Taxes

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. 

These fees make up the out-the-door price. 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 various taxes, including city, state, and county sales tax, personal property tax, and often a vehicle license tax, which has to be paid annually. These taxes can vary greatly depending on your location, so it’s crucial to research and understand the tax rates specific to your state and local jurisdiction when budgeting for a vehicle purchase.

Title Fee

The title fee is charged as a cost for the documents required to transfer the title from the seller to the buyer. This fee can range from as low as $4 up to $150, depending on the state you’re in. The title fee is non-negotiable and must be paid to properly transfer ownership of the vehicle.

Tags and Registration Fees

Tags and registration fees are also imposed by your local government and are non-negotiable. These fees cover the cost of registering the vehicle under the buyer’s name and providing the physical license plates for the car.

Registration fees can vary widely among states. Some states charge a flat fee, while others base their fees on the vehicle’s weight or age. It’s essential to research your state’s registration fees to have an accurate estimate of the overall cost of purchasing a car.

Tag fees relate to the physical plates required for your vehicle. The cost for these plates varies from state to state, so make sure you’re aware of your specific state’s tag fees when budgeting for your car purchase.

Doc Fee

Doc fees straddle the line of legitimate and illegitimate. While dealerships may charge a doc fee to offset the cost of non-revenue producing employees, you should always negotiate this fee. Doc fees vary widely from state to state and dealer to dealer, so it’s crucial to research the average doc fee in your area. 

Note 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.

Car Dealer Doc Fee by State in 2023

Now, onto the negotiable dealer fees you should never pay when buying a car.

Dealership Fees to Avoid

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

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.

The Complete List of Dealership Fees

All of these add-ons and dealer 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.

Fee or Add-on	Category
Wheel Locks	Accessory
Spash Guards	Accessory
Mud Guards	Accessory
Exhaust Tip	Accessory
Pinstripes	Accessory
Sun Shade	Accessory
Floor Mats	Accessory
Connectivity Kit	Accessory
SAVY Driver	Accessory
Trunk Tray	Accessory
Pro Pack	Accessory Packages
KARR Security System	Car Alarm Products
Fusion Security System	Car Alarm Products
Diamond Ceramic	Paint Protection
Zaktek Ultimate	Paint Protection
Zurich Shield	Paint Protection
Nano Protection	Paint Protection
Cilajet	Paint Protection
Clearshield	Paint Protection
Premium Exterior Finish	Paint Protection
Advanced Ceramic Tech	Paint Protection
Enviromental Protection Package	Paint Protection
Carefree Paint Protection	Paint Protection
Ziebart Diamond Gloss	Paint Protection
Door Edge Guard	Paint Protection
Clear Door Protection	Paint Protection
Clear Shield Package	Paint Protection
3M Protection Package	Paint Protection
Clear Bra	Paint Protection
Paint Pro Film	Paint Protection
Invisa Shield	Paint Protection
Key Care/Key Replacement	Lost/Stolen Key replacement
Vehicle Prep	Dealer Fee
Dealer Prep for Delivery	Dealer Fee
Pre-Delivery Service	Dealer Fee
Pre-Delivery Inspection	Dealer Fee
Reconditioning Fee	Dealer Fee
VIN Etch	Etch Theft Deterrent
VTR	Etch Theft Deterrent
Theft Code Protection	Etch Theft Deterrent
Courtesy Guard	Etch Theft Deterrent
Express Code	Etch Theft Deterrent
Phantom Footprint	Etch Theft Deterrent
Dent Protection	Exterior Protection
Ding Defender	Exterior Protection
Appearance Protection	Exterior Protection
ELO-GPS	GPS Theft Deterrent
Spartan GPS	GPS Theft Deterrent
SWAT GPS	GPS Theft Deterrent
LoJack	GPS Theft Deterrent
Theft Patrol	GPS Theft Deterrent
Fabric Defense	Interior Protection Products
Interior All Weather Protect	Interior Protection Products
NuVinAir	Interior Protection Products
Caltex Reistall	Interior/Exterior Protection Products
LuxCare	Interior/Exterior Protection Products
Autobond Sealant	Interior/Exterior Protection Products
Xzilon Paint and Fabric	Interior/Exterior Protection Products
PermaPlate	Interior/Exterior Protection Products
Paint and Fabric Defense	Interior/Exterior Protection Products
Allstate Paint and Fabric	Interior/Exterior Protection Products
Nitrogen Fill	Tire Care
Solar Guard Tint	Window Tint
Tinted Glass	Window Tint
Nano-Ceramic Film	Window Tint
Smart Auto Windshield	Windshield Protection Coverage
Windshield Repair	Windshield Protection Coverage
Crystal Fusion	Windshield Protection Coverage
Dupont	Paint & Interior protection
Simoniz	Paint & Interior protection
Diamond Coat	Paint & Interior protection
Safe-Guard/Theft	Theft Deterrent
US TheftGuard	Theft Deterrent
Data Dots/Nano Dots	Theft Deterrent
Theft Prevent	Theft Deterrent

Examples of Dealer Fees to Avoid

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.

Don’t Pay Fake Fees!

When purchasing a vehicle, it’s crucial to stay in control of your deal and be aware of the various fees you may encounter. By understanding the legitimate fees, being cautious of questionable ones, and avoiding unnecessary dealership fees and add-ons, you’ll ensure that you’re getting the best deal possible on your next car.

Ready to take control of your car buying experience? Let CarEdge Coach guide you through the process, ensuring you avoid unnecessary fees and get the best deal possible, all with three months of 1:1 expert help. If you prefer a DIY approach, CarEdge Data is the perfect tool to help you make informed decisions and secure a great deal on your own terms. Why do we do it? We simply want to change car buying for the better. It’s about time!