![]() Similar to how you have to pay tax when buying goods, you must also pay tax on a new vehicle. This means you can expect new car fees to be more expensive than used car fees. Cars with higher price tags often have higher registration fees. Title and registration fees typically depend on the value of your car. The dealership charges you the cost of registration and title, and some might charge an additional fee for completing this requirement on your behalf. This includes ordering the car's title and securing the license plate. When you buy a car from a dealership, the dealer might take care of the registration process for you. Title and Registration FeesĪll states require drivers to register their vehicles. Negotiating the doc fee is not usually possible since it covers the required paperwork. This service can save you a trip to the Department of Motor Vehicles because the dealer handles all the paperwork for you. On average, according to Consumer Reports, you can expect the median doc fee to be between 1 and 3 percent of the vehicle's total cost. For example, California has doc fee limits capped at $80. Some states have a maximum doc fee a dealership can charge. Some dealerships charge less than $100, while others charge hundreds of dollars in doc fees. Dealerships spend a lot of time preparing the sales paperwork, and some might charge you for this service. Documentation Feesĭocumentation fees, sometimes referred to as doc fees, refer to the handling and processing of paperwork. If the dealer tries to add this fee on top, you'll want to check the fine print to avoid being double charged. This fee might be included in the cost of the car or listed as a separate charge on your sales contract.ĭelivery and preparation fees should already be part of the destination fees. This charge covers the cost of a car wash or professional cleaning before they hand it off to you. Some dealers might also charge a dealer preparation fee in addition to the destination fee. If you order a specific model or color, the dealership might have to pay to transport it to the lot so you can pick it up. You can expect to pay less in destination fees if the vehicle you're buying is already on the lot. This fee depends on the location of your new vehicle. The car dealership might charge you this fee if you buy a new car that needs to be delivered. Common dealer fees include: Destination Feesĭestination fees refer to the dealership's transportation costs. What Are Common Dealer Fees When Buying a Car?Ĭar buying fees or dealer fees are the extra costs the dealership charges when someone buys a car. ![]() Looking for an auto loan that works for you? Easily compare lenders below. Learning the most common dealer fees when buying a car helps you save money as you begin the car buying process. It's important to understand these fees so you know which ones you might be able to negotiate. These fees might cover the cost of new license plates, dealer prep services, or sales tax. Many dealerships charge fees when selling new or used cars.
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