Do car dealerships charge extra fees? If you’re shopping around for a new or used vehicle, you might be concerned about paying extra for buying from a dealership. Will you have to pay more and get less? Here’s the truth about what to expect when you buy a car from a dealership.
What Fees Are Involved in Buying a Vehicle?
When you buy a vehicle in the state of Michigan, there are certain fees that will be charged. These are required by the state and are applicable regardless of where you buy the vehicle from.
The fees for buying a vehicle include:
- 6% Michigan sales tax
- Title fee ($15-16)
- Plate fee or plate transfer fee
No matter what route you choose, it’s important to budget for these state-regulated costs on top of the price of the vehicle.
Do Car Dealerships Charge Extra Fees?
Every dealership in the state charges a doc fee – or documentation fee. This fee can vary significantly depending on the dealership and the state, ranging anywhere from $100 to nearly $1000. While many states cap doc fees, some do not.
What Does the Doc Fee Cover?
The doc fee that dealerships charge covers the cost of administration services for the vehicle. For every car sale, there’s paperwork that needs to be processed. This includes registering the vehicle, obtaining license plates, and filing for the title.
In many cases, there are also other administration tasks, such as preparing contracts and recording liens.
Dealerships handle this paperwork and other administration fees for the car buyer, saving the buyer a trip to the Secretary of State.
At Tillema Auto, our documentation fee (doc fee) is $250.
What Does the Doc Fee Do for a Buyer?
By paying a doc fee at a dealership, you as the buyer get to avoid navigating and filling out paperwork and going to the Secretary of State. Instead, you can take care of everything right here in our dealership, and drive home with your vehicle.
What Other Fees Do Buyers Have to Pay?
In addition to the doc fee and the actual cost of the vehicle, every vehicle sale in the state of Michigan incurs a 6% sales tax, title fee, and plate fee (or plate transfer fee).
What Happens After You Buy a Vehicle From a Dealership?
Since we take care of all the paperwork, you don’t have to worry about sitting at the Secretary of State to finish the process. We’ll handle everything in house, and you can drive your vehicle home.
After leaving our lot, you get to park your new vehicle in the driveway or garage and rest assured that we’ll be taking care of all the clerical work behind the scenes.
Your title will arrive to your home about 3-6 weeks from the date of purchase. In addition, your new plate or registration will come to us. We will then mail it to you, or you can come pick it up.
Let Us Help Make Car Buying Simple
We know that buying a vehicle can be a stressful process. At Tillema Auto, we make the process as easy as possible for our clients – from the time you start looking for a vehicle to the moment you drive it home.
When you work with our experienced team, you won’t have to worry whether you’re completing all the paperwork correctly, or if you’ll miss your daughter’s ballet recital sitting at the Secretary of State. We’ve got you covered!
Come visit us at 2667 84th St SW, Byron Center, MI 49315, or browse our online inventory today.
