Dealer Fees Explained
Dealer fees are one of the most misunderstood parts of buying a car.
Some are legitimate. Many are not.
Here’s how to tell the difference:
Legitimate fees:
- Tax, title, and registration
- State-mandated documentation fees (varies by state)
Questionable fees:
- “Dealer prep”
- “Reconditioning”
- “Nitrogen tires”
- “Market adjustment” (pure markup)
Key rule:
If it’s not required by the state, it’s negotiable.
Always ask for a full breakdown before signing anything.
Most buyers focus only on the vehicle price and miss how fees, financing, and add-ons impact the total deal structure.
Before signing, it’s worth reviewing the full numbers independently.