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HOT TOPICS
2017
MEMBERSHIP
DIRECTORY
148
Dealers often ask the Association whether they can preprint charges, such as prep fees or dealer markup on their
invoices forms. Our answer: the only preprinted charge you should have on your buyers order is the doc fee, which
is specifically authorized by DMV regulations and currently set at $75.
Dealers who preprint charges on buyers orders have been the target of past AG and DMV enforcement. Preprinting
charges can make them appear to be mandatory or state imposed. Additionally, the AG’s office has argued that
adding an additional fee after you have negotiated a price with a consumer would be a deceptive practice. Also,
unless you include the extra charges in your advertisements, these charges will cause the advertised price to be
wrong, which is also a violation.
A preprinted fee for some specific item could subject you to charges that you are “packing” the deal. In addition
to enforcement by the state, you could be opening the door to a class action lawsuit. Including language in a
footnote that the extra charge is additional markup or dealership profit probably won’t save you any of the grief
you could be buying if you preprint a charge on the buyers or lease order.
Repair Orders Shop Supplies:
DMV has maintained that no pre-printed fees are permitted on repair orders.
Charges for the disposal of waste materials such as anti-freeze, brake fluid, and solvents must be clearly identified
and itemized on repair orders and advertising. Charges for these items must be reasonable and must be limited
to those repairs where there actually were such materials involved. The same rule applies to shop supplies such as
nuts, bolts, or cleaners. Further, state law prohibits additional charges for accepting some waste (such as waste
oil) and you must avoid those charges as well.
THE LOWDOWN ON PRE-PRINTED FEES