7 Car Dealership Ripoffs You Should Never Pay
Buying a car can be an exciting experience, but it’s also riddled with sneaky fees and upsells that can quickly turn a great deal into a nightmare. If you’re ready to master your money and build your wealth, it’s crucial to know which dealership fees are legitimate and which are ripoffs. In this post, we’ll dive into seven car dealership ripoffs you should never pay for and give you tips on how to negotiate effectively.
Understanding Legitimate Fees: What You Can’t Negotiate
Before we get into the shady fees dealerships try to sneak in, let’s start on a fair note. There are a few charges that are non-negotiable and absolutely legit—dealerships aren’t ripping you off on these. Knowing these will help you identify what’s reasonable.
1. Title and Registration Fees
Every time you buy a car, you need to register it with your state and get the title transferred. These fees are set by state and local governments and usually amount to about 8-10% of the vehicle’s price. The dealer just collects these on behalf of the state, so you don’t have much room to negotiate here.
2. Destination Charge
This fee covers the cost of transporting the vehicle from the factory or port to the dealership. It’s mandated by federal law to be clearly displayed on the car’s sticker (the Monroney sticker). The destination charge is uniform nationwide for each model, so dealers can’t mark it up or negotiate it.
3. Inspection Fee
Some states require a vehicle safety inspection before a car can be sold or driven legally. This fee is also set by the state and typically costs between $7 and $100. It’s a small, non-negotiable cost that dealerships have to charge.
The 7 Car Dealership Ripoffs to Avoid
Now that you know the honest fees, let’s expose the seven common dealership scams that can cost you hundreds or thousands of dollars if you’re not careful.
1. Doc Fee (Documentation or Processing Fee)
This is a classic ripoff. Dealers charge a “doc fee” to handle paperwork, but this fee can range wildly—from $80 to nearly $800! Some dealerships try to lump title, registration, and doc fees into one big number and claim it’s non-negotiable because of state mandates. Don’t fall for it.
What to do:
Ask for an itemized breakdown of what’s included in the doc fee. You should only pay the exact DMV and registration costs. If the doc fee is inflated, negotiate the car price down by the amount of the markup or refuse to pay it.
2. Delivery Fee
Often confused with the destination charge, the delivery fee is a sneaky extra charge dealerships add on top of the destination fee. This fee is not legitimate, especially for used cars, as there’s only one destination charge ever applied.
What to do:
If you see a delivery fee on your bill, demand it be removed immediately. If the dealer refuses, be prepared to walk away.
3. Advertising Charges
Dealerships sometimes add a line item for local advertising costs. This is nonsense because advertising is a normal cost of doing business and should be absorbed by the dealer or manufacturer, not passed on to you.
What to do:
Ask to have this fee removed. If they insist on charging it, walk away.
4. Theft Deterrent Products
This includes things like VIN etching and wheel locks. Dealers sell VIN etching—where your vehicle identification number is etched on windows—at prices as high as $300-$400. You can buy VIN etching kits online for about $20 or get similar services done cheaply or even free by local mechanics or police departments.
Wheel locks are also marked up significantly—$200+ at dealerships versus $20 online.
What to do:
Skip these dealer-installed theft deterrents. Buy them yourself for a fraction of the cost or get a trusted local professional to install them.
5. Nitrogen Tire Fill-Up
Some dealers will try to charge you $70+ per tire to fill your tires with nitrogen, claiming it extends tire life and improves performance. In reality, air is already about 78% nitrogen, and the benefits of pure nitrogen are minimal for everyday drivers.
What to do:
Don’t pay for nitrogen fills. If offered for free, take it, but don’t shell out cash for this.
6. Additional Dealer Markup (ADM)
This is a huge ripoff primarily for highly sought-after models—think limited edition sports cars like the Corvette, Shelby Mustang, or rare Porsches. Dealers add a markup above MSRP just because they know people will pay it due to high demand.
What to do:
Don’t pay over sticker price. Dealers can usually trade with other dealerships to get the car you want without charging extra. If you’re serious, talk to a manager or shop around.
7. Accessories and Cosmetic Upgrades
Dealerships love to upsell paint protection, fabric protection, window tinting, and detailing packages. These markups are insane, often hundreds of percent over what you’d pay elsewhere. The quality is usually poor, with paint protection lasting only a few weeks and fabric protection being cheap spray-on solutions you can DIY for less than $10.
Window tinting and detailing should be done by local professionals who offer better service at a better price.
What to do:
Avoid buying these add-ons at the dealership. Instead, buy quality products online or use trusted local businesses.
When and How to Negotiate These Fees
Negotiation is an art, especially at the dealership. You want to be smooth and strategic—don’t just jump into haggling fees right away.
Build Rapport First
Think of negotiation like chatting with someone at a bar—you don’t propose marriage on the first hello. Build some rapport, ask questions, and slowly work your way toward the bill.
Wait for the Bill of Sale
The best time to negotiate is when the paperwork is being printed and the finance and insurance (F&I) manager starts listing all the fees. This is when you bring up each questionable fee and say, “I’m not paying for this” or “Please itemize this for me.”
Be Prepared to Walk Away
If they won’t budge on bogus fees, be ready to leave. Your power is in your willingness to walk away, so never go into a deal desperate to buy.
Final Thoughts
Car dealerships have perfected the art of adding hidden fees and upsells that cost buyers thousands of dollars. But armed with the right knowledge, you can spot these ripoffs and save big.
Remember:
- Only pay legitimate, state-mandated fees.
- Always ask for itemized billing.
- Don’t fall for inflated doc fees, delivery fees, or advertising charges.
- Avoid overpriced theft deterrent products and accessories.
- Negotiate smartly and be ready to walk away.
By knowing these seven ripoffs and how to handle them, you’ll be that confident buyer who walks away with the best deal possible. Don’t forget to share this info with friends and family—help them avoid wasting money on unnecessary fees!
Happy car hunting and stay savvy out there!
FAQs
Q: Are doc fees always negotiable?
A: Doc fees are often negotiable, especially if they include inflated charges beyond DMV and registration fees. Always ask for itemization.
Q: Can I refuse to pay for dealer accessories?
A: Yes! Accessories like paint protection and fabric guard are optional, so you can say no or buy them elsewhere.
Q: Is nitrogen tire fill really worth it?
A: For most drivers, no. The benefits are minimal and not worth the high price dealers charge.
Q: What if a dealer insists on ADM fees for a popular car?
A: Try negotiating or ask for a trade. Avoid paying above sticker price if possible.
Q: How can I tell if fees are legitimate?
A: Legitimate fees are usually state-mandated like title, registration, destination charge, and inspection fees. Anything else should be scrutinized.
Keep these tips in mind, and you’ll never get taken for a ride by sneaky car dealership fees again!
