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Car Dealer Fees by State 2021

What are car dealer fees? Car dealer fees are extra charges that a dealership adds to the final bill when purchasing a car. The most common additional fees are sales tax, vehicle registration, and a documentation fee.

Car dealership fees can often come as a surprise to car buyers because most car dealers will not bring them up during the negotiation stage when pricing a vehicle but rather towards the end of the process. There are many expenses to consider when buying a vehicle, and some states are better for purchasing vehicles in based on these expenses.

Every dealership has a dealer documentation fee, which covers the office personnel doing the paperwork to sell a new or used car. These fees range from state-to-state and typically range from $50-$607. Depending on the state, fees might be determined by a percentage of the sale price. Florida has the highest dealer fee of $607, followed by Colorado with $508 and Georgia with $502.

Many dealerships will not notify you of this fee until you are signing the final paperwork for your car; however, some dealerships will negotiate the fee with you, and some will even remove it.

Car buyers should be aware that 35 states do not limit dealer documentation fees; therefore, car dealerships can price this fee as high as they want. Alaska has no limit on the dealership documentation fee, but the fee must be included in the price of the car. Currently, California has the lowest average dealership documentation fee of $55.

Here are the 10 states with the largest car dealer fees:

  1. Florida ($607)
  2. Colorado ($508)
  3. Georgia ($502)
  4. North Carolina ($466)
  5. Alabama ($458)
  6. Nevada ($431)
  7. Virginia ($403)
  8. Arizona ($401)
  9. Wyoming ($388)
  10. Connecticut ($357)

Car Dealer Fees by State 2021

State Dealer Fees 2021 Pop.
Florida$60721,944,600
Colorado$5085,893,630
Georgia$50210,830,000
North Carolina$46610,701,000
Alabama$4584,934,190
Nevada$4313,185,790
Virginia$4038,603,980
Arizona$4017,520,100
Wyoming$388581,075
Connecticut$3573,552,820
Kentucky$3544,480,710
Maine$3361,354,520
Massachusetts$3216,912,240
New Hampshire$3041,372,200
Illinois$30012,569,300
Utah$2933,310,770
South Carolina$2935,277,830
Idaho$2861,860,120
Mississippi$2742,966,410
New Jersey$2708,874,520
New Mexico$2632,105,000
Ohio$24711,714,600
Hawaii$2451,406,430
Oklahoma$2353,990,440
Kansas$2352,917,220
Rhode Island$2311,061,510
Montana$2241,085,000
Nebraska$2221,952,000
Michigan$2209,992,430
Missouri$1906,169,040
Indiana$1786,805,660
West Virginia$1751,767,860
Wisconsin$1525,852,490
Vermont$148623,251
Washington$1457,796,940
Pennsylvania$14412,804,100
Iowa$1343,167,970
Maryland$1316,065,440
Texas$12529,730,300
North Dakota$124770,026
Louisiana$1034,627,000
Arkansas$973,033,950
South Dakota$93896,581
Minnesota$755,706,400
New York$7419,300,000
Oregon$614,289,440
California$5539,613,500
Tennessee-6,944,260
Delaware-990,334
Alaska-724,357

Car Dealer Fees by State 2021