Which car dealer fees do I have to pay and which are negotiable?

Dealer Preparation Fee. This is what the dealer charges you to prepare your car. Some dealers charge $500 or more for this fee. At most dealerships they don't have to do very much to prepare a car for sale. They peel off the plastic protectors on the car, test drive the car a few miles, and put in the fuses. Sometimes, you can get them to give this fee up.

Destination Charge. This is what it costs the dealership to have the car delivered by truck. You have seen those large trucks on the freeway carrying cars right? This is a real fee to the dealer and it is customary that it is passed on to the customer. Before paying this fee check with online pricing resources (see the Auto Pricing page) to make sure the dealer is not over charging you.

Advertising Fee. Dealers may try to hide this fee by using strange acronyms like DCFA (Dealer Cost For Advertising). Also, check the dealer invoice to see if an advertising fee is included in the dealer cost. If it is, you should not have to pay it twice.

Floor Plan Interest Fee. The manufacturer usually includes one to two months of floor plan interest in the hold back on the dealer invoice. Some dealers try to pass this fee on to you.

Window Etching Fee. Dealers have been known to charge as much between $300 - $900 to etch the Vin Number # on your window. You can get a kit at your local auto parts store and do this yourself for as little as $29.

Documentation Fee. This includes registration, tag, title and other state fees. Check with your local Department of Motor Vehicles for how much these fees should be in your state. Then, get your auto dealer to write down what the documentation fees are going to be for your car. If any of the fees seem too high ask the dealer about them.

Port Prep Fees. Fees for things done to the car in port when it arrives in the US. An example is applying an under coating. This fee is not negotiable with the dealership.

Click here to return to the Auto Pricing page.


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