What Are Legitimate Charges Car Dealers Can Pass Along For Title and Registration Processing Fees?

Hi Tony,

You don't mention anything on your web site about "processing fees" currently being charged by every car dealer. Could you please tell me what charges are legitimate?

Thanks for your help,

Kevin D.

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Hi Kevin,

All car dealers charge some kind of processing fee, title fee, notary fee and or registration fee. 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.

Most states set a maximum amount a car dealer can charge for various fees, and 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 or not.

To be sure you are not getting ripped-off check with your state DMV before you go to the car dealer to find out what you can expect. Then you'll know if the dealer is trying to get over on you, and you'll have a good case for refusing to pay excessive 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.

All my very best,

Tony Iorio

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