by California May Allow Dealers to Increase Vehicle Processing Fees
California is considering a bill that would allow car dealerships to charge customers significantly larger amounts for processing paperwork. Instead of the current limit of $70–85, the fee could rise to 1% of the vehicle’s price or $500, whichever comes first. This represents an increase of 500–600%.
The SB 791 bill received nearly unanimous support from both parties in the state legislature. The only one who voted against it was Senator Henry Stern, who stated:
“Auto dealers have not earned the trust for such an increase in additional fees. Bad behavior should not be rewarded.”
Why Do Dealers Want to Increase Fees?
Representatives of car dealerships claim that their business operating costs are rising and they have the right to compensate for them at the expense of customers. However, critics point out that the cost of processing documents does not depend on the brand or price of the car, so this approach seems questionable.
Lobbyist for the California Dealers Association, Anthony Samson, openly stated:
“If we thought we could simply cover our costs through the price of the car, we would not be asking for your support of this bill.”
Over recent years, the association has spent over $2.9 million on political donations, raising questions about the justification for the changes. If the law is passed, buying a car in California will become even more expensive. Meanwhile, on social media, dealers continue to claim their “century-long history of protecting customer interests.”
This situation demonstrates how lobbying can influence the legislative process, especially when it comes to high-profit industries. Buyers, who already face high car prices, may find themselves under additional financial pressure due to the increase in “hidden” fees.
