What Is a fee of documentation for buying a car?

When buying a car, documentation fee is a fee to offset the costs associated with the completion of title and registration paperwork resulting from the sale will be charged by the dealer to the consumer. Not all dealers are charging documentation.

Identification

The documentation fee must be listed on a purchase order or buyer's order, like all other costs. Because the fee is charged, cash sales price of the vehicle is often directly under the tax mentioned on the buyer's order.

To type

Some manufacturers may have limits on documentation fees for employees. For example, Ford not limit the right of the documentation shall be charged to retail customers, but dealers may not be a reimbursement documentation on employee purchases.

Function

The remuneration of the documentation for the purchase of a car apply to expenditure linked to the processing of paperwork, but it is separate from registration fees charged by the state.

Warning

Regardless of what a dealer documentation fee is charged not by the manufacturer, nor is it necessary to register the vehicle. All state registration are as separate line items in the buyer's order.

expert insight

Edmunds.com car-buying specialist Philip Reed notes that you should avoid paying more than $ 100 for a fee of documentation. If it is higher, to negotiate a lower price for the vehicle to compensate for the higher amount.