BUSTING OPEN THE CAR DEALER PLAYBOOK

By The Numbers: Key Takeaways

Excessive Fees Analysis

1. License Fee: $292.64

   • The amount in license fees that dealers are allowed to charge is capped by the state and should not exceed a certain amount. This number is the average amount by which license fees exceeded the state limit in the used car purchases analyzed by CoPilot.

2. Plate Fee: $275.99

   • Similarly, plate fees are regulated on a state-by-state basis and cannot exceed a certain amount.

3. Transportation fee: $212.33

   • Transportation fees refer to the cost of shipping the car from another location, like another dealership. These fees can often be marked up or contain illegitimate add-ons. 

4. Title fee: $205.92

   • In some states, title fees – the cost of transferring ownership from the buyer to the seller, including processing documents – are capped at a certain amount. Even in the absence of statewide regulation, these fees can be considered excessive if the dealer charges extra for processing documents beyond the title transfer.

5. Doc fee: $204.32

   • In some states, doc fees are regulated and capped at a certain amount. Some states, like Florida, that don’t have statewide regulation tend to see excessively high doc fees.

1. Title fee: $205.92
2. Doc fee: average $204.32

3. Registration: average $258.55 

   • This represents the average amount that dealer registration fees exceeded the amount charged by the state’s DMV.

4. License fee: average $292.64 

5. Electronic filing fee: - average $220.57

Illegitimate Fees Analysis

Note: The illegitimate fees below fall into a few categories. They can include charges for added features that were pre-installed on the vehicle, but not included in the final purchase price to the consumer. They can also refer to extra features that the dealer added to the car during the purchase process, without asking the consumer. 

The common thread here is that while these fees describe actual add-ons or services, what makes them illegitimate is that they were added to the final purchase price of the car without the consumer’s knowledge or consent.

1. Etching, wheels and lock: $1,795.00

   • This includes the vin etching, the wheel locks, and recovery system to protect against theft.

2. Reconditioning: $1,581.83

   • On paper, this fee covers the dealership’s costs to get the vehicle ready to sell (including inspecting, repair, and detail).

3. Exterior paint protection: $1,366.17

   • This fee refers to a brand name for a series of products designed to protect the exterior and interior of the vehicle against environmental damage (exterior) and spills/stains (interior).

4. Anti-theft / lo-jack: $1,227.25

   • This refers to a theft protection or deterrent system.

5. Door edge: $1,067.71

   • This refers to a product designed to protect the edges of vehicle doors from nicks, chips, and scratches that can occur from contact with other objects, like walls and other cars, or even when opening the door too forcefully.

1. Exterior paint protection: $1,238.23 
2. Reconditioning: $1,366.17 
3. Dealer accessories: $1,581.83 

4. Warranty: $1,593.97 

   • An add-on package for extended warranties, service plans, or other dealer-specific benefits these services are totally discretionary to the consumer and they should be able to push back on the fee if they are not interested in these services.

5. Anti-theft: $1,227.25

Brand Type Breakdown 

Domestic Brands - i.e., Ford, GM, Chevrolet

• 71% of purchases had hidden fees

  • The total amount of hidden fees was $885.19
  • illegitimate fees - average amount: $855.13
  • excessive fees - average amount: $30.07

Foreign Brands - i.e., Honda, Toyota, Kia

• 64% of purchases had hidden fees

  • The total amount of hidden fees was $851.97
  • illegitimate fees - average amount: $729.41
  • excessive fees - average amount: $134.92

Luxury Brands - i.e., Mercedes-Benz, Audi, Lincoln

• 39% of purchases had hidden fees

  • The total amount of hidden fees was $425.99
  • illegitimate fees - average amount: $361.25
  • excessive fees - average amount: $64.74

The Why: Record Dealer Profits Lead to Deceptive Business Practices 

ABOUT COPILOT

For journalists and publishers, CoPilot’s data has the best real-time view on prices, sales, and inventory in the new and used car market. By monitoring the online inventory of virtually every dealer in the country, every day, CoPilot:

• Provides fresh, comprehensive, and daily data
• Offers insight on the new and used market, broken down by segment, brand, model, and fuel type
• Looks at current retail prices, which (unlike wholesale prices) are a much more accurate reflection of how much consumers are currently paying for cars

For consumers, CoPilot offers the first-ever AI-assisted car shopping app, which:

• Searches virtually every dealer and analyzes millions of vehicles to find the best car for your needs, at the right price
• Helps you avoid add-ons and hidden fees, and negotiate the best price
• Does not take money from dealers, providing customers with truly unbiased recommendations

Media Contact:

Kerry Close Guaragno

kclose@groupgordon.com

732-609-2644