Car Buying - The Documentary Service Fee

The documentary service fee. It’s typically listed in every car dealership contract. But what is it? And what does it mean for you?

The documentary service fee is an optional fee that a dealer may charge. It is meant to be a fee for the cost of licensing and titling a vehicle. The dealer may charge an amount up to $150 for this fee. But what most consumers don’t understand is that this fee is optional and negotiable. You are free to negotiate a waiver of the fee.

Dealerships violate the law concerning the documentary service fee when they:

• Fail to disclose the fee in writing;

• Fail to disclose that the fee is negotiable;

• Charge an amount more than $150 for this fee;

• Represent that the fee is required by law;

• Fail to separately designate this fee from the selling price or capitalized cost of the vehicle and from any other taxes, fees, or charges; or

• Fail to state in their advertisements that this fee may be added to the sales price or capitalized cost of the vehicle.

If you’ve had any issues with a documentary service fee in a vehicle purchase, give us a call to see if we can assist you.