What is a dealer documentation fee and what does it cover?

What is a dealer documentation fee and what does it cover?

Also known as "doc fees," these fees cover dealer administrative costs involved with processing title, registration, or any other paperwork, filing, or various clerical tasks that go along with your car purchase. Most Indiana car dealers charge a documentation fee. Doc fees cover the cost of producing, completing and retaining documentation to complete a transaction. Some states set a maximum amount, but most states do not have a limit. Indiana does not regulate doc fees but have communicated to dealers a “safe harbor of $150.00 States that closely regulate fees do not allow a dealership to negotiate the doc fees. In Indiana, these fees are negotiable.  A quick survey shows the average Indiana dealer charges between $174 and $349, but a few dealerships will throw in a couple of car washing if you pay $ 699. In the last few years the actual cost of the needed documentation has gone above the safe harbor of $150.00

In addition to the actual cost of the forms, most dealers pay for computer systems, programming of the documentation and purchase and maintenance of specialized printers, subscribe to a vendor for electronic storage and pay dealership personal to scan and upload the documents for retention. We also are required to maintain a secure and lock facility for document storage. We must produce and provide annual update safeguarding plan and provide employee training. Dealership also pays for secure shredding service. We pay legal counsel to maintain proper, legal documentation.

In finance deal, in addition to the manufactures and bank documentation, the dealer is required to complete and retain

IDOne Verification/OFAC

Risked Base Pricing Documentation

Adverse Action

Purchase Order

State form 46633 – Affidavit

State Form – ST108

Odometer Statement(s)

Privacy Notice

Product Disclosure

Used Vehicles - Buyers Guide

Temporary Tags

Notary public service

Collection and submission of state sales and tire tax

Inskeep Ford also provides vehicle history reports, timely execution of payoff of trade vehicles and timely delivery of title work to the customer.

If you have any questions or comments feel free to post them here or email me at pat.dunn@inskeepford.com Thanks for reading (as long as you were not reading while driving)