What Is a Doc Fee?

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A dealer documentation fee, or "doc fee" for short, is a charge that appears on a new or used vehicle sales contract and is meant to recoup some or all of the costs, associated with completing and filing all the necessary paperwork to complete the purchase and register the vehicle.  In some states, this could be less than $100. In other states, a dealer doc fee could add nearly a thousand dollars to the final purchase price. What, exactly, are you getting for your money? And do you really have to pay this documentation fee when buying a car?

Jump to:
What is a doc fee when buying a car?
What is a reasonable dealer doc fee?
Do you have to pay a dealer documentation fee?
Are dealership doc fees negotiable?

What is a doc fee when buying a car?

The paperwork for completing a car purchase is often complicated. It involves many different forms, including credit checks, loan applications, state registration, vehicle titling, the sales contract and more. In many cases, several dealership employees are involved in finalizing the sale of a vehicle. They all need to be paid for their time, and there are often electronic filing fees charged to the dealership. Some car buyers may be surprised when they learn that a vehicle’s advertised price doesn’t include all the fees associated with the car buying process. Still, when it comes time to sign on the dotted line, doc fees are legitimate costs, not fraudulent charges, and are completely legal.

In some states, however, a car dealership is allowed to make a profit from the doc fee, and it can end up becoming an additional source of revenue for a car dealership.

What is a reasonable dealer doc fee?

Doc fees can vary widely from dealer to dealer and from state to state. A handful of states limit the amount a dealership can charge for a doc fee, but the majority don’t have caps. 

This means that if your state's government doesn't limit the doc fee, the amount is left up to the dealer's discretion. And since there can be significant variation among different dealers across the state, it's good to ask early in the process what the dealership charges. 

For example, you may find a dealership with what appears to be an attractive price for the car,  but then it adds a high doc fee to the contract. If all the dealers in your immediate area charge the same doc fee and you think it’s too high, you may need to expand your search into neighboring cities.

Using data collected from thousands of dealers nationwide, Edmunds has calculated a median fee — the middle of the range — that dealers charge for doc fees in each state. When you go car shopping, these estimates are a valuable guide to determine if a dealership is charging close to the typical doc fee in your state or if they are charging a fee that’s higher than other dealerships in the area.

In 2025, Florida and Virginia are tied for having the highest median doc fee at $899. At the other end of the spectrum, dealerships in New York and California have the lowest median doc fee at just $75 and $85, respectively. Several states, such as California, Oregon, Arkansas and West Virginia, have placed limits on the amount a dealership can charge for documentation fees, and, not surprisingly, that’s the same figure as the median doc fee for the state.

If you want to see a detailed list of the doc fees in all 50 states and other potential car buying fees, check out Edmunds’ article "What Car Fees Should You Pay?"

Do you have to pay a dealer documentation fee?

In most cases, yes, but you always have the option of walking away from a potential deal you don't feel good about. That said, basing your decision on a potential new car purchase primarily on a documentation fee, assuming the dealer doc fee you’re being charged is reasonable for your area, isn’t likely your best option. In most cases, your efforts will be better spent negotiating the vehicle’s purchase price instead of the dealer’s fees. 

Instead of fixating solely on a doc fee, pay close attention to the other elements of a good car deal. These are factors that you're likely to have more influence over. In addition to the negotiated purchase price of the car, these may include the interest rate of a loan and the cost of other extras, such as extended warranties that may be offered to you in the finance and insurance office. When you make an offer or agree to a price, make sure you’re comfortable with all elements of the transaction and have included all fees, including the doc fee, into your calculations. In the end, the final out-the-door price, which includes all taxes and fees, is the most important figure for the buyer.

Are dealership doc fees negotiable?

While it’s certainly acceptable to ask a dealership if the doc fee is negotiable, it’s likely a set fee charged to all customers who buy vehicles from that specific dealership. By charging every customer the same documentation fee, dealerships avoid any chance of being accused of discrimination.

It’s important to remember that the dealership doc fee is just one part of the car buying process. If you’ve found a salesperson you like, a dealership that offers excellent customer service, or a particularly good price on a vehicle, paying a bit more for documentation fees may be an acceptable, albeit unpalatable, option.