What is a dealer's "doc fee"?

From this page:

---------- DOCUMENTARY SERVICE FEE FOR 2003: $52.57

The maximum documentary service fee for 2003 will be $52.57. This is an approximate 2.2% increase in the 12-month Consumer Price Index for All Urban Consumers issued by the U.S. Department of Labor. The "doc fee" is subject to Retailers Occupation Tax as part of the gross receipts of the sale of the car.

Pursuant to 815 ILCS 375/11.1, every retail installment contract under the Act shall contain or be accompanied by a notice containing the following information:

"DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING JANUARY 1, 1992, WAS $40. THE MAXIMUM AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF $40 WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."

Please note that if your dealership is operating under a Consent Decree related to documentary fees, the Consent Decree may have requirements in addition to those set forth in the above law.

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Generally it seems that the sentiment about the doc fee is that you have to weigh the cost of your time to perform the relavent registrations with your local DMV vs having the dealer do it for you. Some say that you need to budget for a day off work to do this yourself.

Other info about the doc fee pertains to some state gov'ts determining that this fee is essentially an addition to the cost of the vehicle being purchased and as such, from the gov'ts point of view, is a taxible item.

A survey of message boards shows that this doc fee ranges from as low as $50 to several hundreds of dollars. The doc fee seems arbitrary and in some cases has been increased steadily to a point where 90% of customers do not complain about it (but apparently 10% do). This seems to be somewhere between $150 and $200.

Click and Clack said this in 1994 regarding a question about a $40 doc fee:

"Actually, it's short for "Documents Fee," which is what the dealership charges for standing in line at the Department of Motor Vehicles to get your license plates and registration."

See also:

I guess if you follow the rule of thumb that the price of things double every 10 years then a $40 doc fee in 1994 would be $80 in

2004...

Thanks. I also found this:

What is a "document fee"? Do I have to pay it?

Answer: Michigan law allows a licensed vehicle dealer to charge customers a "document fee" of $160.00 or 5% of the vehicle purchase price, whichever is less for completing the paperwork necessary in a sales transaction.

Public Act 699 of 2002 can be found on the Michigan Legislature's website at:

And this:

"Lawmakers let dealers raise auto paperwork fees"

Once at a Mazda dealer I was getting a rough quote worked up on a Protégé 5 and they added a document fee. When we asked he admitted that it was just another way to get money.

It is a fee that is allowed by law in several states-it allows the selling organization-not only a dealer but any selling organization that has to process credit applications to charge a fee for the service. This is not limited to the Automobile Industry-and definitely not limited to "Dealerships".

Washington, my home of record, does not allow such a fee--but if you want a good deal from the big dealer in Idaho--you will pay the fee!