Don't Pay These Fake Dealership Fees!

Dealership fees can add thousands to your car purchase, but many of these charges are completely negotiable or outright scams. Understanding which fees are legitimate and which are profit grabs is essential to getting a fair deal.

Legitimate Fees You Should Expect

Before we dive into the fake fees, let's clarify which charges are actually legitimate and unavoidable:

1. Sales Tax

• Set by your state government
• Non-negotiable
• Typically 5-10% of the purchase price
• Must be paid whether you buy from a dealer or private party

2. Registration and Title Fees

• Government-mandated charges
• Covers license plates, title transfer, and registration
• Usually $100-500 depending on your state
• Dealers can charge a small processing fee (typically $50-100)

3. Documentation Fee (Doc Fee)

• Covers paperwork processing
• Regulated in many states with maximum limits
• Typically $200-500 (varies by state)
• While legitimate, it's often inflated and sometimes negotiable

Fake Fees to Refuse

Now let's expose the fees that are pure profit for the dealer and should be negotiated away or refused entirely:

1. "Market Adjustment" or "Additional Dealer Markup" (ADM)

**What it is:** An arbitrary markup added to high-demand vehicles, sometimes thousands of dollars above MSRP.

**Why it's a scam:** There's no service or value provided—it's just the dealer exploiting demand.

What to do:

• Refuse to pay over MSRP unless the vehicle is extremely rare
• Find dealers who don't charge ADM (they exist!)
• Be willing to wait or travel to avoid this fee
• Report excessive markups to the manufacturer

**Example:** A $5,000 "market adjustment" on a popular SUV that's readily available at other dealerships.

2. "Dealer Preparation" or "Pre-Delivery Inspection" (PDI)

**What it is:** A fee for "preparing" the vehicle for sale, supposedly including inspection and cleaning.

**Why it's a scam:** This is part of the dealer's normal business operations and is already built into their profit margin. New cars arrive ready to sell.

What to do:

• Point out that this is included in the dealer's overhead
• Refuse to pay it or negotiate it away
• Ask what specific services justify this charge

**Example:** A $795 "dealer prep fee" for washing the car and removing plastic wrap.

3. VIN Etching

**What it is:** Etching the Vehicle Identification Number on windows, supposedly to deter theft.

Why it's a scam:

• Costs the dealer about $10 to do
• They charge $200-400
• You can buy a DIY kit for $25
• Provides minimal theft deterrent value

What to do:

• Decline this service entirely
• If already done, refuse to pay or negotiate down to $50 maximum
• Do it yourself if you want it

**Example:** A $299 "theft protection package" that's just VIN etching.

4. Fabric Protection and Paint Sealant

**What it is:** Protective coatings for interior fabric and exterior paint.

Why it's a scam:

• Dealers charge $500-1,500
• You can buy equivalent products for $50-100
• Modern car paint and fabrics are already well-protected
• Application takes 30 minutes

What to do:

• Decline at the dealership
• Apply your own protection if desired
• If you want professional application, use a detailing shop (much cheaper)

**Example:** A $1,200 "paint and fabric protection package" that costs the dealer $75.

5. Nitrogen Tire Fill

**What it is:** Filling tires with nitrogen instead of regular air.

Why it's a scam:

• Regular air is 78% nitrogen already
• Benefits are minimal for regular drivers
• Dealers charge $100-300
• You can get it free at Costco

What to do:

• Decline this service
• Regular air works perfectly fine
• If you want nitrogen, get it elsewhere for free

**Example:** A $179 "nitrogen tire package" for something that provides negligible benefit.

6. "Dealer Installed Options" at Markup

**What it is:** Accessories like floor mats, roof racks, or running boards installed by the dealer.

**Why it's a scam:** Dealers mark up these items 200-400% over retail price.

What to do:

• Buy accessories online or from auto parts stores
• Install them yourself or pay a shop (still cheaper)
• If already installed, negotiate the price down significantly

**Example:** $400 for floor mats you can buy online for $100.

7. "Reconditioning Fee" on Used Cars

**What it is:** A fee for cleaning and minor repairs on used vehicles.

**Why it's a scam:** This is standard business practice and should be included in the asking price.

What to do:

• Ask for an itemized list of reconditioning work
• Negotiate this fee away entirely
• Point out that preparing cars for sale is part of their business

**Example:** A $695 "reconditioning fee" for a basic wash and oil change.

8. "Electronic Filing Fee" or "E-Filing Fee"

**What it is:** A charge for submitting paperwork electronically to the DMV.

**Why it's a scam:** Electronic filing actually saves the dealer time and money compared to paper filing.

What to do:

• Refuse this fee
• Point out that electronic filing benefits the dealer
• Offer to file paperwork yourself if they insist

**Example:** A $150 "electronic filing fee" for something that takes 5 minutes.

How to Negotiate Away Fake Fees

Strategy 1: Request an Out-The-Door (OTD) Price

Ask for the complete OTD price upfront, including all fees. This forces the dealer to disclose everything and makes it easier to compare offers.

**Say this:** "I need your best out-the-door price including all fees, taxes, and charges. I'm comparing offers from multiple dealers."

Strategy 2: Challenge Each Fee

When you see questionable fees, ask for justification:

**Say this:** "What specific service does this fee cover? Can you show me the work that was done?"

Strategy 3: Be Willing to Walk Away

The most powerful negotiating tool is your willingness to leave.

**Say this:** "I'm not comfortable with these additional fees. If you can't remove them, I'll need to consider other options."

Strategy 4: Use Competing Quotes

Get quotes from multiple dealers and use them as leverage.

**Say this:** "Dealer X is offering the same car for $2,000 less without these extra fees. Can you match that?"

Strategy 5: Focus on the Bottom Line

Don't let dealers distract you by adjusting one number while increasing another.

**Say this:** "I'm only concerned with the final out-the-door price. Please provide your best offer with all fees included."

Red Flags to Watch For

Be especially cautious if you encounter:

• Fees that appear only in the finance office
• Charges that weren't disclosed during negotiation
• Fees with vague names like "processing" or "handling"
• Refusal to provide itemized fee breakdowns
• Pressure to "sign now" without reviewing fees

What to Do If You've Already Paid Fake Fees

If you've already purchased a vehicle and paid questionable fees:

1. **Review your contract carefully** - Document all fees charged 2. **Contact the dealer** - Request a refund for illegitimate fees 3. **File a complaint** - Report to your state's attorney general and the Better Business Bureau 4. **Leave reviews** - Warn other buyers about the dealer's practices 5. **Contact the manufacturer** - Many manufacturers take dealer complaints seriously

The Bottom Line

Legitimate fees for a car purchase should include:

• Sales tax (government-mandated)
• Registration and title fees (government-mandated)
• Reasonable documentation fee ($200-500, varies by state)

Everything else is negotiable or should be refused. Don't let dealers pad their profits with fake fees that provide no value.

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