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Document prep charge California style....
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Posted by Mike Lynch [Email] (#81) [Profile/Gallery] (more from Mike Lynch) on Fri, 25 Jun 2004 12:40:17 Share Post by Email
In Reply to: The document fee is collusion..., Misplacedyankee [Profile/Gallery] , Fri, 25 Jun 2004 08:00:55
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California does not require a doc fee, but California law does specify that if a dealer does charge a doc fee it can be a maximum of $45 and that a California dealer cannot selectively charge some customers and not others, if you charge one you have to charge 'em all.

IMO a $45 doc is fair. A dealer does a lot of work and accounting for sales tax and license fees and doesn't get anything for it. The average $30k car has almost $2,700 worth of government charges (7.75% sales tax, 1% license) to be forwarded to the state with severe penalties for screwing up. A 1.66% fee ($45/2,700=.01666) for processing and collection of $2,700 in government fees seems fair to me.

I heard that the standard doc fee in Florida was $500 at one time and that that was considered excessive so they lowered it to $300. So I can understand why people can get upset.

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