Some Car Dealers Abuse "Doc" Fees!

Some states are increasingly passing laws letting car dealers raise their processing fees. Part of the problem is the efforts by car makers to spur sales have cut into car dealer profits. As a result at least in part, these higher "doc" fees have come as major turmoil in the auto industry causes lower profit margins on new cars.

New federal and state rules have led to more paperwork requirements over the past 5 years. Average net car dealer profit per new vehicle was $60 in 2005, down from $172 in 2004. Dealer profits may get even slimmer as car makers try to clear out 2006 models.

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.

Consumers and lawmakers in some cases are fighting these high auto fees.Class-action lawsuits are currently pending in states such as AK and FL.A number of states have introduced legislation seeking to limit or require fee disclosure.

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! 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.

Don't be afraid to question the dealer if you suspect the "doc" fees are excessive.

Tony Iorio
http://www.insidercarsecrets.com