What “Junk fees” means
Only a few charges on a car deal are set by someone other than the dealer: sales tax, and the title and registration fees paid to the state. Everything else is the dealer’s. “Junk fees” is the name for the ones with no real service behind them: dealer prep on a car the factory already prepared, “market adjustment” on an ordinary model, “reconditioning” on a new car, theft-etch or nitrogen packages you did not ask for, and administrative fees stacked on top of the doc fee.
These fees are legal in most places as long as they are disclosed, and some states cap the doc fee. Whether you pay them is a negotiation, which is why the only number that matters is the out-the-door price.
How it shows up at the dealership
Junk fees appear late, on the worksheet or the buyer’s order, after you have agreed a price and feel done. A salesperson may say a fee is “on every car” or “already installed.” Both may be true and neither obliges you to pay for it. The dealer can lower the price by the same amount, which is the same thing.
Pre-installed dealer add-ons on the window sticker addendum are the same tactic in a different place.
What to do
- Ask for a written out-the-door price with every fee listed before you discuss payments.
- For each fee, ask what it pays for. Keep the tax, title and registration; question the rest.
- Compare the doc fee with what other dealers in your state charge; if it is capped, know the cap.
- If a fee will not come off, ask for the price to come down by the same amount, in writing.
- Walk if the total keeps moving; another store will sell the same car.
What to say
“I see a $499 ‘dealer prep’ fee and a $299 ‘admin’ fee on top of the doc fee. Tax, title and registration are fine. Please remove those two or take $798 off the price.”
Also called: bogus fees, add-on fees.
