If you ask the salesman or finance manager what this fee is you'll get different answers from different people. What is the highest doc fee that a dealer is allowed to charge in Georgia? Also, the state laws that regulate doc fees (where they are enforced) apply to both the used and new car transactions. It’s often called a “dealer documentation fee” or “documentary fee” or something similar. The dollar amount varies by dealership, but states typically require that it’s included in an advertised price. Doc fees can be any amount, but dealers will usually charge the same doc fee to each of their customers to avoid allegations of and liability for discriminatory or unfair and deceptive practices under M.G.L. Documentation Fees. The handling of doc fees depends on what state you live in. It is difficult to negotiate for the dealer’s doc fee since the law requires the dealer to charge every customer the same amount. Some years ago, The State of Massachusetts even investigated an extensive list of dealers inquiring how much they were charging for their doc fees, and what their reasoning behind it was. A dealer selling a new or used unit shall post on the vehicle any document preparation fee that will be added to the vehicle's sale price. Suite 300 Toronto ON M4H 1P1. a fee of less than $199, with 45% not charging a fee. MAINE Has no cap on doc fees. A violation of this section is prima facie evidence of an unfair trade practice and is a violation of Title 5, section 207. for about 40 years. Some will tell you it pays for doing your title work, pays for the receptionist, pays for the salaried employees, and a different mix of fixed expenses the dealer needs to pay each month. The documentation fee or “doc fee,” covers the cost of preparing, printing and then filing that inch-thick pile of forms with your lender, as well as state and local governments. Some states put a limit to how much a dealer can charge, but others have no cap - resulting in each dealer charging a different amount. It's a made up fee by dealers in B.C. In some states it’s the wild west. It's a way for dealers to add profit back into a car deal and typically used to run about $300. And, indeed, most dealerships employ several full-time employees just to handle the administrative paperwork and digital filing that is associated with the sale of an automobile. Air Conditioning levy– The Canada Revenue Agency levies an excise tax of $100 on vehicles imported or manufactured in Canada at time of delivery to the purchaser, in most cases the automotive dealer. For all new motor vehicle dealers, the fees ranged from $0 (or no amount disclosed) to $699, with $405 the average (the range among dealers who assessed a fee was $50 to $699, with an average of $425). Does this Doc Fee Apply to Both Used and New Vehicles? Many states do not have set limits while others put a cap on what a dealer can charge for the doc fee. (illegally forces you to pay an extra fee beyond the published price or you can’t buy the vehicle). In the negotiation process, when a dealer prices you a car, it will be something like: “this vehicle will cost you $30,000 after rebates, plus TT&L for a total of $32,212.” Included in that $2,212 amount is the documentary fee. Administration/dealer fees. Dealer Documentation Fee Also called the "Doc Fee", this is the amount a dealer charges to complete all the paperwork related to the sale of a vehicle, including the sales contracts, filings with the DMV, and any other paperwork. Documentation fee — The dealer’s document fee — also called a processing fee, handling fee or conveyance fee — helps offset the dealer’s cost of preparing all the paperwork that goes along with selling a car. Some states cap fees, meaning the dealership can charge up to a maximum amount for this service. These doc fees cover the time that the dealership's office workers spend processing paperwork once a car has been sold, such as the vehicle registration and title. If an advertisement has been placed by two or more dealers, and there is a fee that varies from one dealer to another (e.g. (8) (a) A vehicle dealer who collects the privilege tax imposed under ORS 320.405 (Tax for privilege of engaging in business of selling motor vehicles at retail) from the purchaser of a taxable motor vehicle may collect the privilege tax at the same time and in the same manner as the vehicle dealer collects document processing fees under this section. c. 93A. Sales contracts also showed dealers in Edmonton charging $395 for "Documentation Fees". The fee can range from less than $100 to several hundred dollars depending on the dealership and where you’re buying the car. When a dealer advertises the price of a car, the doc fees must be included in the advertised price. Consumer Ed says: Georgia does not regulate how much a car dealer can charge in dealer fees, also frequently referred to as “document fees,” “processing fees,” or “customer service fees.” Given this, you will likely notice a range of these types of fees at dealerships throughout the state. A: Why do car dealers often charge this fee? Yes there is such a thing as admin fee, doc fee, transaction fee or any other variant automotive dealers wish to describe their nominal charges of how they administer paperwork, licensing or securing funding for any and all automotive purchases. All dealers have one, the charge is meant to cover the cost of office personnel doing the paperwork after the sale of a new or used car. Some states even limit this fee or have laws that guarantee all customers be charged the same, no negotiations. Dealers typically apply this to all types of vehicle sales. The answer to this question is, "yes." Doc fees usually include DMV fees and registration fees, but the dealer may also include other things like the cost of pulling your credit, and getting all the paperwork in order. Documentation Fees Reasons why you may be charged documentation fees: Documentation fees are charged by the majority of dealers in the province. Doc fees can range anything from around $100 to $500+ depending on the state and where your dealer is located. Third-party warranties. The fees charged by all used motor vehicle dealers ranged from $0 (or no amount disclosed) to Vehicle add-ons such as paint protection, etching or any add-on that is not factory installed. Documentation fees can range from $0 up to $1,000, depending on which dealer you’re at and which state your vehicle is purchased in. Nonparticipating dealers may only charge a $65 documentation fee per transaction. The most common is a documentation fee. ILLEGAL “A dealer policy where all new vehicles must receive a paint protection package and vehicle floor mats for an additional $1,000. If you don't believe me then contact legal counsel at OMVIC. Then come back here and tell me I'm right. When I sold cars back in 1991, the sales staff was instructed to inform customers that the doc fee covered the dealership’s cost of doing business with the government. Probably not because dealers tend to lump the doc fee in with tax, title, and license. 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. Preparation … Because they can. Many states cap doc fees to prevent dealers from exploiting them. Is There a Tax on the Doc Fee? Admin fee:The amount dealers charge to cover expenses such as licensing, arranging insurance documentation, processing a loan or lease with a financial institution as well as activation of satellite radio, Bluetooth and other in-car services. Car dealership documentation fee. Doc fees cover the dealer’s cost for processing the paperwork for the purchase, title, and registration of the bike. OMVIC 65 Overlea Blvd. Licensing fee indicates the cost of car plates and registration, and doesn’t include any additional fees or charges added by dealer. Doc fees change from state to state and from dealer to dealer. If you bought a car in the last 15 months, you may be entitled to a refund of the fees you paid over and above the advertised price, according to the Manitoba Motor Dealers Association. Accuracy of contract preparation ensures proper registration of customer’s vehicle by the licensing authorities. If a dealer charges you a $600 dealer prep fee, then this means that you're really paying them $300 an hour for just 2 hours of work! Doc fees go by a lot of names: Document Fees; Documentation Fees; Paperwork Fees; Conveyance Fees; Processing Fees; Service and Handling Fees; But all are names given for the same administrative costs associated with the purchase or lease of a (new or used) vehicle. A "Doc Fee" is a fee charged by a dealership that supposedly covers the cost of paperwork involving in selling you a car. Type of fees where you can negotiate Administration fees : These fees include transaction, financial documentation and licensing, and sometimes may also cover in-car features such as satellite radio and bluetooth. administration fee), that fee may be excluded from the all-in price; however, the amount of the fee MUST be disclosed in the ad, along with a description of what the fee is for, in a clear, comprehensible and prominent manner. How to Avoid the Dealer Prep and Excessive Fee Scam You will often see dealer prep fees permanently printed on the buyer's order to make you think it's mandatory, but many people make the car dealers remove it by adding a credit on the next line. In any case, doc fees are not mandated, and they are negotiable. Doc fees allow dealers to recoup those costs. MARYLAND Caps doc fees at $300. Not sure which doc fee you should pay? Since this report was published, many … The only difference between admin fees … Most dealerships charge anywhere from $50 to $500 and the fee is normally not brought to your attention until right before you sign the paperwork for your vehicle. Most dealers have documentation fees. Dealers participating in the Business Partner Automation (BPA) program may charge buyers customers an $80 documentation fee per transaction. Phone: 416-226-4500 Toll-Free: 1-800-943-6002 Office Hours: Monday to Friday 9:00 a.m. - 5:00 p.m. The dealer documentation fee in Massachusetts is something I've seen be as little as $0, and as high as $700, with little to no explanation behind the value. Understanding the Doc Fees. MASSACHUSETTS Has no cap on doc fees. Non-Mandatory Additional Fees. They vary from dealership to dealership. Some reasons they may be charged are: Preparation of vehicle purchase contract. If the dealer plans to include a doc fee with that price, let it be. At a certain level, this is legit. Items like DMV fees and registration fees are set by the state and can’t be negotiated, while the cost of pulling your credit could be. Dealer Documentation Fee.