Dealer Fees Explained

Every common dealer fee, what it actually is, whether it's negotiable, and which ones you can refuse outright.

Legitimate, non-negotiable charges

• Sales tax: set by your state and county. Not negotiable.
• Title and registration: state DMV charges passed through at cost.
• Destination charge: the factory's shipping fee, printed on the window sticker of every new car.

Negotiable dealer charges

• Documentation (doc) fee: dealer paperwork charge. Capped by law in some states, unlimited in others. If it cannot be removed, ask for an equal reduction in the vehicle price.
• Dealer prep: often duplicates work the factory already paid for. Push back.
• Market adjustment / ADM: pure markup above MSRP. Always negotiable, and worth walking away over.

Add-ons you can refuse

• VIN etching, nitrogen-filled tires, paint sealant, fabric protection and pinstriping.
• Aftermarket alarms and tracking devices installed without your request.
• Pre-installed accessory packages — ask for them to be removed or discounted to zero.

Finance office products

GAP insurance and extended service contracts can be worth buying, but they are marked up and their price is negotiable. You can also buy GAP from your own insurer or credit union, usually for far less. Always ask to see the payment with and without each product.

Read with the questions to ask, the out-the-door calculator and the Color of Our Money Is Green eBook.