Doc Fees

Wednesday, November 01, 2006

"Doc fees" are charges by auto dealerships for preparing vehicle sales paperwork. These are "junk fees" that dealerships use to inflate the sales price.

In California, doc fees are capped at $45. This will rise to $55 in 2007, as part of a lucrative quid pro quo car dealers extracted from lawmakers before dealers would agree to support the California’s Car Buyer’s Bill of Rights.

Thirty states place no limits on doc fees. According to an article by the Wall Street Journal, in the states that do not regulate the fees, they run from $400 to $700, and can reach as high as $900. In South Florida, if you buy from the chain AutoNation, your salesman’s trip to the printer costs you $599.

Interestingly, some car salesmen resent doc fees as much as car buyers, characterizing them as “a rip off to the customer AND the salesman” since the fees eat into their commissions and go straight to the dealership.

When buying a car, it’s a good idea to ask what the “out the door” price is before you sign a contract. Fees of any sort can be negotiated when buying a car. To protect yourself, just cross out parts of the contract you feel are unreasonable, including junk fees.

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