Dealer fees have been and likely will always be a part of buying a car, but sometimes the types and amounts of these fees can vary from state to state. So, what are the dealer fees in Florida?
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Table of Contents
Common Dealer Fees
| Fee Type | Description | Average Cost (Florida) |
|---|---|---|
| Documentation Fee | Covers dealer’s costs for paperwork and vehicle registration. | $670 (Highest in the U.S.) |
| Title and Registration Fees | Pay for new title assignment and vehicle registration with Florida’s DMV. | $225 or more |
| Sales Tax | Levied on vehicle purchases, applied to the sales price minus any trade-in value. | 6% |
| Destination Charge | Covers transporting the new vehicle to the dealer. | Around $1,500 |
| Dealer Preparation | Covers making the vehicle sale-ready. Must be included in advertised prices. | – |
| Dealer-Installed Options | Additional features or services installed by the dealer, increasing the vehicle price. | Varies |
| Questionable Fees | ||
| – Advertising Charge | Dealers may try to pass their advertising costs to the buyer, which should be included in the sales price. | – |
| – Dealer Fee | A vague fee with no clear purpose, typically negotiable. | $600-$700 (Negotiable) |
Documentation Fee
This covers the dealer’s costs for processing paperwork and vehicle registration. At $670 on average, Florida has the highest documentation fees in the U.S.
Title and Registration Fees
These mandatory fees pay for new title assignment and vehicle registration with Florida’s DMV. Plan for $225 or more.
Sales Tax
Florida levies a 6% sales tax on vehicle purchases. The tax applies to the sales price minus any trade-in value.
Destination Charge
This fee covers transporting the new vehicle to the dealer. It averages around $1,500.
Dealer Preparation
Also called “prep fee”, this covers making the vehicle sale-ready. Florida law requires including it in advertised prices.
Dealer-Installed Options
Additional features or services installed by the dealer increase the vehicle price.
Related Article: What is VTR When Buying a Car
Questionable Fees
Advertising Charge
Dealers sometimes try passing their ad costs to the buyer. This should already be factored into the sales price.
Dealer Fee
A vague fee ranging from $600-$700. Since it has no clear purpose, this fee is typically negotiable.
Do all Florida Dealers Charge a Dealer fee?
No, not all dealers in the state of Florida will charge you a dealer fee, below is a list of some Florida dealerships who guarantee no dealer fees:
Florida dealerships with no dealer fees:
- Mullinax Ford (Labels their pricing as “Upfront Pricing”
- Dixie Buick GMC in Fort Myers
- JM Lexus
- Hollywood Kia
- Wes Haney Chevrolet
- Brandon Ford
Tips for Buyers
- Thoroughly review the sales contract and ask for explanations of unclear fees. Legitimate fees should have a reasonable explanation.
- Compare fees across multiple dealers to identify inconsistencies. Use online forums to learn typical fee ranges.
- Politely ask for fee reductions or removals. Competition gives buyers negotiation power.
- If negotiating lower fees, ask what can be offered as compensation, i.e. free car washes, oil changes etc.
Buying a car involves navigating numerous dealer fees, especially in Florida. While some are non-negotiable, others present negotiation opportunities. Knowing which fees to expect, inspecting contracts diligently, asking questions, and leveraging competition can help Floridian car buyers save hundreds of dollars.
Sources For This Article
- https://www.reddit.com/r/askcarsales/comments/1677p04/first_time_buying_from_a_dealership_typical/?rdt=43419
- https://www.reddit.com/r/askcarsales/comments/e8gdzb/any_negotiating_advicedata_points_on_the_florida/?rdt=48821
- https://www.local10.com/consumer/2015/01/07/5-things-floridians-need-to-know-not-to-get-ripped-off/
- https://www.flhsmv.gov/motor-vehicles-tags-titles/dealers-installers-manufacturers-distributors-importers/mv-rv-mh-dealer-broker-licenses/required-fees/
