Ask Sid: How Much Can Dealers Charge for Plates? - AARP Bulletin Scams & Fraud

High Charges for Car Tags

Q. I negotiated what I thought was a good price for a new car. But when the agreement was written, I was charged $359 for “tags.” I know my state charges only a fraction of that cost. Is this dealer charge legal? A. In a word, usually. When written on a sales agreement, “tags” implies the cost of registering the vehicle and getting a license plate—but the charge usually also includes the so-called documentation fee that dealerships impose to file that purchase paperwork. (Filing can also be done online.) Only a few states cap permissible “doc” fees. Most don’t regulate this cost, giving dealerships a green light to hike the price. And some dealerships charge whatever they think they can get. A better way to haggle: First, call your state department of motor vehicles to learn what it charges for tags and registration. Then, rather than negotiating a car’s “selling” price, ask the dealer about the “out-the-door” purchase price. Get specific numbers on state sales tax, tags, registration, the doc fee and other fees. As a general rule, you shouldn’t pay more than $100 for the documentation fee unless it also includes tags and registration. for calculating fair car-buying prices before you visit a dealership and can guide you on these fees in each state. Sid Kirchheimer is the author of “Scam-Proof Your Life” (AARP Books/Sterling). Cancel You are leaving AARP.org and going to the website of our trusted provider. The provider’s terms, conditions and policies apply. Please return to AARP.org to learn more about other benefits. Your email address is now confirmed. You'll start receiving the latest news, benefits, events, and programs related to AARP's mission to empower people to choose how they live as they age. You can also by updating your account at anytime. You will be asked to register or log in. Cancel Offer Details Disclosures

Close In the next 24 hours, you will receive an email to confirm your subscription to receive emails related to AARP volunteering. Once you confirm that subscription, you will regularly receive communications related to AARP volunteering. In the meantime, please feel free to search for ways to make a difference in your community at Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.