You've agreed on a price, and then the buyer's order shows up with a list of extra lines. Some of those are legitimate and unavoidable. Others are pure profit for the dealership. Knowing the difference can save you real money.
Charges you generally can't negotiate
Sales tax, title, and registration
These are set by your state and local government. The dealer collects them and passes them along. The amounts should match what your state charges, so it's fair to ask how they were calculated.
Destination charge (new cars)
The destination or delivery charge is set by the manufacturer and appears on the new car's window sticker. It's generally the same at every dealer for that model, so it's rarely negotiable. It should appear once. Watch for a second "delivery" or "freight" line added by the dealer.
Fees that may be negotiable
Documentation ("doc") fee
Dealers charge a doc fee to process paperwork. Some states cap it, while others don't, and the amount varies a lot from dealer to dealer. Even when a dealer won't remove it, you can ask for an equivalent reduction in the vehicle price. This is another reason to compare out-the-door prices rather than sticker prices.
Market adjustments
A "market adjustment" or "additional dealer markup" is simply extra profit added above the sticker price, usually on high-demand models. It's entirely up to the dealer, which means it's negotiable, and another dealer may not charge one at all.
Dealer prep or reconditioning fees
Getting a car ready for sale is part of the dealer's cost of doing business. If you see a separate prep fee, ask what it covers and push back.
Add-ons you can usually decline
Many dealers pre-install extras and list them on a second sticker next to the manufacturer's window sticker. Common examples:
- VIN etching: the vehicle identification number etched into the windows as a theft deterrent
- Nitrogen-filled tires
- Paint, fabric, or undercoating protection packages
- Wheel locks, pinstripes, door-edge guards, and "appearance packages"
- Anti-theft or tracking devices
If you don't want them, say so, and ask for them to be removed from the price. If they're already installed and the dealer won't remove the charge, that's a good reason to get quotes from other dealers.
The finance office menu
After you agree on a price, the finance and insurance (F&I) office will typically offer optional products such as:
- Extended warranties or vehicle service contracts
- GAP coverage
- Tire-and-wheel, key replacement, or dent protection plans
- Prepaid maintenance plans
Some of these can be worthwhile depending on your situation, but they're all optional, prices are often negotiable, and some (like GAP coverage) may be available through your auto insurer or lender. Take time to decide. You don't have to accept anything on the spot.
Before you sign: ask for an itemized buyer's order, check every line against what you agreed to, and make sure nothing was added along the way. If something is there that you didn't agree to, ask for it to be removed.
Let us go through the fine print for you
Catching padded fees and unwanted add-ons is part of what we do. Our Full-Service plan covers the whole negotiation through delivery, and a 1-hour coaching session can help you review a deal you've already been offered.