Dealer fees explained: what is fixed and what is not
Updated
Dealer fees are the charges on a car deal beyond the vehicle's price. Some are set by government, such as sales tax, title and registration. The destination charge is set by the manufacturer and printed on the window sticker. Others, like documentation fees and dealer-installed add-ons, are set by the dealer and vary from store to store.
The three kinds of fees
| Fee | Set by | Room to move |
|---|---|---|
| Sales tax, title, registration | Your state and locality | None: they are what the law says |
| Destination charge | The manufacturer, on the window sticker | Usually none on a new car |
| Documentation fee | The dealer | Some states cap it; elsewhere it varies by dealer |
| Dealer-installed add-ons | The dealer | Often optional; ask to remove them or to have them priced |
| Market adjustment | The dealer, on cars in high demand | A price above sticker, and part of the negotiation |
| Lease acquisition fee | The leasing company | Part of the lease quote; ask for it itemized |
Add-ons to ask about
Dealers sometimes add products such as paint or fabric protection, window etching, nitrogen-filled tires, wheel and tire protection, or service contracts. Some are useful to some buyers; none should appear on your deal without you choosing them. Ask for each to be listed with its price, and decline what you do not want.
How to see every fee before you sign
Ask for an itemized out-the-door price in writing, and compare totals across dealers rather than vehicle prices. Fees that appear only at the desk are a reason to stop and ask.
DriveEasier negotiates the whole deal, not just the sticker: fees, add-ons, financing and terms, with one out-the-door number in writing.
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