Dealer Fees & Add-Ons Uncovered: Legitimate vs Hidden Charges

Learn about car dealership fees: documentation fees (doc fees), destination charges, title fees, and optional add-ons (VIN etching, paint protection).

By Sarah Jenkins, CFA

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Reviewed by David Vance, CFP

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5 min read

Legitimate Mandatory Dealer Fees

Documentation Fee (Doc Fee): Covers paper processing and state registration filing ($150 - $850 depending on state caps).
Destination Charge: Mandatory fee set by the manufacturer to ship a new car from factory to dealership.
State Title & Registration Fees: Government taxes collected by dealer and remitted directly to the DMV.

Unnecessary Dealer Add-Ons to Avoid

VIN Etching ($200 - $400): Etching vehicle identification numbers on glass; can be done at home for $20.
Fabric & Paint Protection ($500 - $1,500): Overpriced chemical sealant sprays.