Doc fees, also known as documentation fees or dealer fees, are charges imposed by car dealerships to cover the costs associated with processing paperwork and documentation when you buy a car.
Dealer Documentation Fees are not upcharges!
The truth is that state law mandates the dealer handle all of the documentation on behalf of the buyer, but there is no law that says they can’t pass the expense back on to you.
These fees are usually non-negotiable and added to the final price of all vehicles, new and used.
Here’s what you need to know about doc fees when buying a car from a dealer:
Helpful Articles to Read:
- How Much Are Dealer Fees and How to Avoid Them
- How Much Do Dealers Markup Used Cars
- How To Negotiate Used Car Price
- How Much Will Dealers Come Down on a Used Car?
- How Much Do Dealerships Make on New Cars
- How do you find out how much a dealer paid for a car?
Table of Contents
What is a Reasonable Doc Fee?
When it comes to the doc fee, what is “Reasonable” varies from dealer to dealer and also from state to state.
Some states set a max fee, like California where a dealer can charge no more than $85. But in the states with no caps, you could be charged up to $500 or $600.
In my estimation, anything around $300 would be considered reasonable, but it’s important to note that whatever the dealer charges must be charged equally to ever customer.
Are Doc Fees Negotiable?
Although dealers will usually try to tell you DOC Fees are not negotiable. they are!
Here are some tips for negotiating or dealing with documentation (DOC) fees at a car dealership:
- Ask the dealership to waive or reduce the DOC fee. They may be willing to do so to earn your business, especially if you’re a serious buyer.
- Negotiate the DOC fee as part of the overall price. For example, if the car price is $20,000 and the DOC fee is $500, offer $19,500 plus the $500 DOC fee to reach the $20,000 price target.
- Compare DOC fees between dealerships. While most charge around $200-$800, some may charge less or nothing at all. Use lower fees as leverage in your negotiation.
- Know your state’s regulations. Some states like California cap DOC fees. In states with no cap, dealerships have more flexibility.
Do Used Cars have Doc Fees?
Yes, both new and used cars have doc fees, and they are usually the same amount at a given dealership.
The doc fee amount varies significantly between dealerships and states but does not usually change based on whether the car is new or used.
Documentation Fees By State
Here is a chart showing the car dealer documentation fees for each state, based on the information provided in the search results:
| State | Average Doc Fee |
|---|---|
| Alabama | $485 |
| Alaska | $299 |
| Arizona | $499 |
| Arkansas | $129 |
| California | $85 |
| Colorado | $699 |
| Connecticut | $599 |
| Delaware | $475 |
| District of Columbia | $300 |
| Florida | $999 |
| Georgia | $599 |
| Hawaii | $395 |
| Idaho | $399 |
| Illinois | $347 |
| Indiana | $199 |
| Iowa | $180 |
| Kansas | $499 |
| Kentucky | $450 |
| Louisiana | $425 |
| Maine | $499 |
| Maryland | $499 |
| Massachusetts | $459 |
| Michigan | $260 |
| Minnesota | $125 |
| Mississippi | $425 |
| Missouri | $565 |
| Montana | $299 |
| Nebraska | $299 |
| Nevada | $499 |
| New Hampshire | $375 |
| New Jersey | $695 |
| New Mexico | $339 |
| New York | $175 |
| North Carolina | $699 |
| North Dakota | $299 |
| Ohio | $250 |
| Oklahoma | $289 |
| Oregon | $150 |
| Pennsylvania | $422 |
| Rhode Island | $399 |
| South Carolina | $399 |
| South Dakota | $125 |
| Tennessee | $499 |
| Texas | $150 |
| Utah | $299 |
| Vermont | $349 |
| Virginia | $599 |
| Washington | $150 |
| West Virginia | $175 |
| Wisconsin | $299 |
| Wyoming | $289 |
The doc fees vary significantly by state, ranging from a low of $85 in California to a high of $999 in Florida. Several states have doc fees around $500, while others are in the $100-300 range. A few key takeaways:
- Florida has the highest doc fee at $999
- California has the lowest at $85
- Over a dozen states have doc fees of $499 or higher
- Minnesota, Oregon, Texas and Washington have relatively low doc fees of $150 or less
Keep in mind these are averages, and the actual doc fee can vary by dealership within a state.
But this provides a general guide for what to expect when purchasing a vehicle in each state.
Do You Have to Pay Doc Fees When You Buy a Car?
Yes, if the dealer charges a doc fee, you must pay that doc fee, or the dealer could be in violation of the law, which requires all customers to pay the same doc fee.
However, as I said above, what you can do is try to offset the fee by reducing other fees or the cost of the car or maybe adding in some sort of service or upgrade.
Avoiding Doc Fees
The only surefire way to avoid doc fees is to purchase a vehicle from a private party seller instead of a dealership.
Private party sales don’t involve doc fees, though you’ll still need to handle the paperwork yourself, which is what the dealer is charging you for = A service.
When buying from a dealer, doc fees are an expected cost of doing business that gets rolled into the overall vehicle price.
Now let’s analyze average doc fee pricing and state regulations in more detail…
Key Takeaways: Doc Fees When Buying a Car
To wrap up, here are the key things to remember about dealership documentation fees as a car shopper:
- Doc fees cover a dealer’s back-office costs for registration, paperwork, etc. They’re legitimate and unavoidable at most dealers.
- Maximum doc fee pricing and regulations varies widely across different states.
- About 35 states currently don’t cap fees, 15 states do regulate charges in some form.
- Focus negotiations primarily around getting the best out-the-door price, including doc fees and sales tax.
- Be an informed consumer by researching state doc fee laws before visiting dealerships.
I hope this guide gave you a helpful overview explaining exactly what doc fees are and what to expect from dealerships in your state. Let me know if you have any other car buying questions!
