Dealer fees and add-ons, in plain English

A documentation ("doc") fee is what the dealer charges to prepare the paperwork. It is a dealer fee, not a government fee. Some states cap it. Two examples from official sources (as of Nov 2026):

• California: up to $85 for dealers in the DMV's private industry partner program, $70 for other dealers. It can't be presented as a government fee (California Vehicle Code §4456.5; California DMV).
• New York: up to $175 for handling your registration and title, labeled on the invoice as "THIS IS NOT A DMV FEE" (New York DMV; NY regs 15 NYCRR §78.19).

For other states, check your state's current rules on your DMV or attorney general's site, and compare doc fees across dealers.

MSRP is the manufacturer's suggested price on the window sticker. A "market adjustment," "ADM" or "additional dealer markup" is an extra amount the dealer adds above MSRP, sometimes shown on a separate sticker. It's set by the dealer, not the maker or the state. You can ask to have it removed, or shop other dealers.

Add-ons are optional products the dealer sells, such as VIN etching, rustproofing and GAP insurance. You can usually buy the car without them, and you can buy most of them elsewhere (FTC). Common ones:

• Paint or fabric protection: coatings or sprays applied at the dealer.
• Nitrogen-filled tires: tires filled with nitrogen instead of regular air.
• VIN etching: the VIN etched on the windows, sold as a theft deterrent.
• Rustproofing, door-edge guards, wheel locks, "appearance" or "protection" packages.
• Extended warranties, service contracts, GAP: may be offered in the finance office after the price is agreed.

Why to look closely: the FTC says add-ons can cost thousands of dollars, are often mentioned only at the end of a long day at the dealership, and are sometimes included without the buyer's knowledge or approval (FTC). If you want one, ask for its total price (not just the monthly change) and what you get, in writing, and compare with outside prices.

A 2024 federal rule (the FTC "CARS Rule") that would have banned add-ons with no benefit was vacated by a federal appeals court on Jan 27, 2025, before it took effect (U.S. Court of Appeals, Fifth Circuit). State laws may still apply; check your state's current rules.

Set by the government: sales tax, title and registration (plates). Amounts depend on your state and sometimes your county or city. The dealer may collect them and pass them on.

Set by the dealer: most other charges, such as doc fees, market adjustments, add-ons and packages. These are set by the dealer and may be negotiable.

If a line isn't clearly labeled, ask: "Is this paid to the state, or kept by the dealer?"

1. An out-the-door price in writing before you visit, with every fee and charge listed (FTC).
2. Which lines are government fees (tax, title, registration) and which are dealer fees.
3. Ask to remove add-ons you didn't ask for.
4. The total cost, not just the monthly payment.
5. Your own financing quote from a bank or credit union, to compare.
6. Read the contract before you sign and check it matches the written quote (FTC).

Then plug the out-the-door price into the calculator to see the monthly cost.