Dealership Processing Fees: What You Should Know

Many customers have questions regarding the processing fee on a sales contract for a new vehicle. These rates are commonly added to the cost of a new vehicle, in addition to the destination price, sales tax, title, and license fees, but what are they and why do dealerships charge them?  

Richmond Ford West goes over everything you should know about dealership processing fees in the following article. If you're shopping for a new Ford vehicle in Short Pump, Ashland, or Glen Allen, keep reading to learn about dealership processing fees.

What's a Processing Fee at a Car Dealership?

A processing fee, also known as a conveyance fee, service and handling fee, or doc fee, is the price a dealership charges in exchange for filling out and filing the forms for your new vehicle. These fees were created when finance and insurance departments were separate from dealerships and cover the cost for paperwork and personnel involved with selling you a vehicle.

Dealership Processing Fees by State and Region

Ten states put a cap on processing fees, but generally dealerships set the price for processing themselves. Dealerships located in the same region usually charge the same amount for documentation fees. 

Most car shoppers will be subject to documentation fees, regardless of whether they buy or lease or choose a new or pre-owned vehicle, and generally receive the same price for service and handling from a given dealership.

The price of a processing fee is based on the dealership's location, not the state the shopper is from. For example, someone from Pennsylvania shopping for a car in Ohio will be subject to the processing fees set by the dealership in Ohio. This is different from sales tax, which is based on the location where the car shopper lives.

Talk to Richmond Ford West to Find Out More

Many people try to negotiate their way out of paying documentation fees, which cost just a few hundred dollars at most dealerships. However, this is a time-consuming process that can cause a major headache for most shoppers. Keep in mind that smart shopping on interest rates and the purchase price of the vehicle can save you much more than the cost of a processing fee.

Documentation fees are a common at most dealerships. If you have any questions about processing fees and how they affect the final price of a vehicle, contact us at Richmond Ford West. We help car shoppers in Glen Allen, Ashland, Short Pump, and beyond find the right vehicle for the right price and are happy to answer any of your questions about documentation fees.

For immediate assistance, call (804) 474-0571 to speak with a sales representative from Richmond Ford West, conveniently located at 10751 West Broad Street, Glen Allen, VA 23060.

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Richmond Ford West

10751 West Broad Street
Directions Glen Allen, VA 23060

  • Sales: (804) 474-0571
  • Service: (804) 474-0573
  • Parts: 804-273-1581

Hours

  • Monday 9:00AM - 8:00PM
  • Tuesday 9:00AM - 8:00PM
  • Wednesday 9:00AM - 8:00PM
  • Thursday 9:00AM - 8:00PM
  • Friday 9:00AM - 8:00PM
  • Saturday 9:00AM - 6:00PM
  • Sunday 12:00PM - 5:00PM
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