All car dealers charge some kind of processing fee, title fee, notary fee and or registration fee. These fees are generally refereed to as "doc fees." All of these fees are legitimate. The car dealers are tasked with transferring titles, assigning liens, dealing with registrations, plates, etc. Unfortunately, there are some car dealers who take advantage of this and use it as a means to grab extra profit. Some states, not all, set a maximum amount a car dealer can charge for various fees, but each state is different. Some car dealers will charge the maximum allowed on each deal whether or not all the fees apply to that individual deal.
Paperwork charges can add up to $900 in about 30 states without set fees or fee caps. "Doc fees" now average $400-$700 in those states vs less than $200 5 years ago. In some states, fees can be subject to sales tax as well! To be sure you are not getting ripped-off You can check with your state's DMV office or your local title and licensing agency to check if there is any limit on "doc fees" in your area. This way you can keep your car dealer honest if they try to overcharge you on "doc fees."
Just remember, car dealers have to pay people to do this paperwork, and some of it can be time consuming and expensive. Therefore they are entitled to cover their expenses in these matters as long as they don't abuse the privilege.
The bottom line here is that some car dealers are trying to make extra profit by overcharging you on "doc fees." This is nothing new by the way! Don't be afraid to question the car dealer if you suspect the "doc fees" are excessive.
