Car Dealer FAKE FEES

To help you better understand why dealer fees are dishonest fakes, it’s important to understand the basic reason a Dealer earns a CLEAN RETAIL PRICE for their car in the first place, as opposed to a PRIVATE PARTY PRICE.  A dealer has a list of responsibilities that include cleaning and preparing a vehicle for sale (Did you notice the “Clean” before Retail?). They also have to fix any reasonably known problems. Finally, a dealer also handles the title transfer with the state DMV office, applies for license plates for you, and collects state taxes due on your car. For all of this, they are rewarded THOUSANDS more for their car, plenty of profit to pay for their services to the consumer. Fees are just a way of making YOU pay them TWICE for the same things they were already paid a clean retail price for. 

Why is the discussion about FEES important? Because you can expect to pay 8% to 10% of the car’s price in fees if you don’t fight them. After you’ve negotiated a mutually agreed upon price, there should be no last minute added fees (profits) to your car deal by the Dealer Finance Office, other than state tax, title, & license fees. 

(Take this outline with you to the Dealer!)

Added Dealer Fees to Watch Out for When Buying a Car

1. Dealer Prep FEE
2. Advertising FEE
3. Regional, or CO-OP Advertising FEE
4. Dealer Advertising FEE
5. Dealer Inspection FEE
6. PDI FEE (same as Inspection fee)
7. ADM FEE Additional Dealer Mark-up
8. ADP FEE Additional dealer Profit
9. Market Adjustment FEE
10. Delivery/Destination FEE on a USED CAR*
11. Nitrogen Filled Tires FEE
12. Document FEE**
13. E-Filing FEE or Electronic Filing FEE(same as Doc Fee, another Double Dip)
14. Dealer Service(s) FEE
15. Accommodation FEE

* Destination Fee should ONLY be charged on a brand new car, and should not appear as a separate line item on your car contract. That’s a double dip! It’s already included in the MSRP!

** California Dealers charge just $85 for a Document Fee. Why should you be required to pay a cent more to any dealer in any other state? Tell them to subtract the difference from the price of the car.

A Dealer who has surprised you with Added FEES has violated Consumer Protection Laws and is guilty of illegal Deceptive Pricing Practices. Take pictures of the Documents, and Report them immediately to the FTC at ReportFraud.ftc.gov or call 877-382-4357.