Dealership fees can add up to hundreds and even thousands of dollars, but that doesn’t mean you have to pay them. Forced add-ons and dealer markups are ruining car buying. This comprehensive 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.
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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.
| 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 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.
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good stuff.thank you
Im getting a custom truck built next year and the dealer told me they charge 600 for their reconditioning fee i understand its bs on a used car but is it necessary on a new one.
No, that is complete BS! Even on used cars that is a bogus fee. Negotiate that off!
So its bs on new cars even more on used?
Do you have to pay a destination and handling charge for a used car, same as new?
I watched video from the peeps that tell you tips . That said never pay destination fee on used
Wtf is a non tax fees?
Hi,
That would be a blanket term for any fee that the dealership has that is not a state or local tax. For example, a processing fee or documentation fee would be considered a ‘non-tax fee’.
I got approved for a 4500.00 car through dealership and when plates came in I was called to come and sign paper work. I already had car and they said my loan was for 8500.00 because of fees for registration taxes and a 2000.00.dollar service fee. I didn’t know I could refuse anything and I had already paid 500.00 down payment. I don’t know what to do. I can’t afford that much money. I will probably die before loan is paid leaving this on my kids. I thought they were honest
Wow, sorry to hear about this. I would ask for the $500 payment back via refund. I hope this worked out for you.
More info on lease deal ‘s
Love your analyses, Zach
Hello
Should a reconditioning fee be almost $5000 added
No, that is ridiculous. What dealership?
Toyota Vandergriff in Arlington
I haven’t signed paperwork yet appointment is at set at 9am but i need to know how to get out of that ridiculous reconditioning fee
Terrible. I’d find another dealer. Their price with the fee could be competitive, but you’ll need to research that: https://caredge.com/report
How can you justify the negotiation of additional installation fees to be taken off the purchase price? If it’s installed already, and they “can’t take it out/off”, and I don’t want it in/on the car, what do I tell them?
Brianna, we recommend asking for them “at cost” instead of at the retail price. That’s usually a good middle ground.
A doc fee is not legitimate, period. Those fees do not straddle the line between legitimate and illegitimate. It is a FAKE fee.
Dealers sell at a price. Price includes all dealer costs plus profit or loss. The minor costs associated with documents is a dealer cost. Hence, those minor costs are part of the price.
There is no legal reason why a car dealer must charge a doc fee nor is there a legal reason a dealer cannot remove a doc fee. The inclusion of doc fee or the non-inclusion of a doc fee is solely a decision by the dealer. When a dealer states they cannot remove the doc fee what they are saying, as noted, is their attorneys have advised them removing the fee from a contract risks being sued by people who paid the fee.
Regardless of whether the dealer includes the fee on the contract, they buyer as no legal obligation to pay the fake fee. The smart buyer will reduce the price by the amount of the fake doc fee.
Why supposed consumer advocates drift to suggesting or stating doc fees are legitimate is a disservice to car buyers.
Depending on the state doc fee is legal, some state doc fees are regulated such as NY state, supposedly cannot charge more than $75 for doc. states like NJ are unregulated so they can (and do) charge what ever they want.
This is correct. I’ve never paid a Doc Fee. How did I do that? When I see it written down, I take out a pen, cross it off, and say, “I don’t pay Doc Fees”. If they start to give me guff, I get up and walk away. Typically they are eager to drop the car’s price by that amount to keep me on the lot.
I bought a used car and they charge me documents processing fee $960.00 pre delivery inspection $979.00 destination charge $995.00 reconditioning fee $5900.00 you think I can sue them
Thank you
After viewing your very helpful and valuable video on fees, am I to understand that when buying a USED vehicle, I should negotiate the fees AFTER settling on a price or before? And should this negotiation be with the salesperson or the finance/insurance person? Thanks for your assistance. Cheers!
What is the best way to find the dealer invoice? Love the videos keep them coming… [email protected]
Yrs. ago that was called ” writing up a sale,, DOC FEE IS A SCAM. Dealer said ” i cant remove the doc fee,, I said ‘ SURE YOU CAN, YOU PUT IT IN THE COMPUTER.,I said ‘ YOURE MAKING $250.00 OFF OF ME EVEN B/4 I SIT DOWN AT THE TABLE. I said, see ya’ later,, and left..Funny that that law was made to help the dealers? How about a law that say, ALL DEALERS MUST give a 30 day warranty on used cars.? ThaT WAY DEALERS CANT pawn OFF THE JUNK CARS ON THE BUYERS. Also, its the LAW that if you ask a dealer who had the car before you, he MUST tell you. Dont let that thief say, cant tell you because of the privacy law. One tried that crap on me until i showed him on paper that he MUST tell mew who had the car b/4 i buy iit. ALSO, DEALERS CANNOT, CANNOT sell a car that not safe to be on the road., like bad frame, brakes, etc,,yes thats the law too. ALSO if you buy a car and dealer doesnt have the sticker in the window,, HE CAN BE FINED. ALSO if dealer lies about the price of the car on the TITLE, he can lose his license.[ fraud ] Yes, i looked all this up. DO NOT FALL FOR THE ” CAR SOLD AS IS CRAP ‘” Especially if dealer knew brakes/ frame was bad. After i got the name of the previous owner b/4 i bought car. he told me NOT to buy the car, which i didnt..
I have a dealer charging me “Accessories Fee” of $800. Because of what the car has. Is this a real fee? THANKS!!!
If it’s taxable … it’s negotiable! Push back on this “fee” please!
What is a cost of compliance fee? And , should I have to pay it when buying my used car. I asked what the Services Fee was and they told me it was for cost of compliance.
No it’s a fake fee. tell them your not paying it.
Should I pay a Government Fee of $103.50? I live in Ohio. Only other fee was the proc/doc fee of $300.00.