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What do total fees mean on car dealership sale?

The term "total fees" in a car dealership sale refers to the additional charges or fees added to the purchase price of a vehicle beyond the vehicle's sale price. These fees may include various charges associated with the processing, documentation, and delivery of the vehicle. Typically, total fees include items like:

1. Destination Charge: This is a standard charge set by the manufacturer to cover the cost of transporting the vehicle from the factory to the dealership. It is usually a fixed amount and cannot be negotiated.

2. Documentation Fee: Also known as a "doc fee," this charge covers the cost of preparing the necessary paperwork associated with the sale of the vehicle, such as the title, registration, and any other required documentation. The doc fee can vary between dealerships but is often non-negotiable.

3. License Fee: This fee covers the cost of the buyer's vehicle license plate and registration, as required by the local motor vehicle department. The fee amount depends on the state or region and the vehicle type.

4. Title Fee: This fee is for the transfer of the vehicle title from the dealership to the buyer and may include costs associated with the title search and registration. The amount varies by state and dealership.

5. Dealer Added Accessories: Some dealerships may charge for accessories or services that have been added to the vehicle, such as floor mats, splash guards, or protective coatings. These charges should be optional and can be negotiated.

6. Administration Fee: This fee may be charged by the dealership for administrative tasks, such as handling the loan application, credit check, and delivery preparation. The amount can vary and may be negotiable.

7. Pre-Delivery Inspection Fee: This charge covers the cost of inspecting the vehicle before delivery, ensuring that it meets quality and safety standards. It is usually a fixed fee and cannot be negotiated.

8. Government Fees: Dealerships are required to collect any applicable government fees, such as sales tax, excise tax, or emission fees. These fees are based on the vehicle's sale price and local tax rates and cannot be negotiated.

It is important to note that total fees may vary between dealerships and can sometimes be negotiated. It's always a good idea for buyers to inquire about the specific breakdown of these charges and negotiate if possible. Additionally, dealerships may offer optional services or add-ons, such as extended warranties or maintenance packages, which should be considered separately from the total fees.