Dealer fees and add-ons, decoded
A car deal sheet can have a dozen lines. Some are set by the government, some are dealer fees, and some are optional add-ons you can decline. Here's what each one usually means. Always ask for the out-the-door price in writing.
Government Usually fixed Dealer fee Optional
| Line on the deal | Type | What it is | What you can do |
|---|---|---|---|
| Sales tax | Government | Set by your state and local government. | Check the rate where you'll register the car. |
| Title and registration | Government | Government fees to title and register the car. | Ask for the actual government amounts. |
| Destination charge | Usually fixed | Shipping from the factory, on new cars. Listed on the window sticker. | Usually not negotiable, but compare the out-the-door price. |
| Documentation (doc) fee | Dealer fee | The dealer's charge for paperwork. Some states cap it. | Often not removed, but you can negotiate the car price to offset it. |
| Dealer prep or reconditioning | Dealer fee | A charge for getting the car ready to sell. | Ask what it covers; negotiate it. |
| Market adjustment | Dealer fee | A markup above the sticker price on popular models. | Negotiable. Shop other dealers. |
| GAP coverage | Optional | Covers the gap between your loan and the car's value if it's totaled. | Optional. Compare the price with your insurer. |
| Extended warranty or service contract | Optional | Covers some repairs after the factory warranty. | Optional. Can be bought later; price is negotiable. |
| Paint, fabric or appearance protection | Optional | Coatings or treatments. | Optional. Say no if you don't want it. |
| VIN etching, nitrogen tires, other packages | Optional | Extras often pre-added to the price. | Optional. Ask for them to be removed. |
General information, not legal advice. Fees, caps and rules vary by state and dealer. Optional add-ons are optional: you can say no, and buying one shouldn't be a condition of getting financing. We aren't a dealer or lender and aren't paid by any.
Three sentences that save money
"What's the out-the-door price, in writing?"
"Please show me the price of each add-on separately."
"I have financing already. Can you beat this rate?"
See what the car will cost each month with the car loan and true cost calculator, or read add-ons at the dealer and read the contract before you sign.