Car Dealers To Add More Fees, Despite Lawmaker Promises To Lower Costs
7/3/2025 | 2mVideo has Closed Captions
A bill would let car dealers charge up to $500 in processing fees.
In a near-unanimous vote, California senators approved a bill allowing car dealers to raise document processing fees to $500 per sale. Lawmakers say it offsets regulatory costs, but critics say it contradicts promises to lower costs for Californians.
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SoCal Matters is a local public television program presented by PBS SoCal
Car Dealers To Add More Fees, Despite Lawmaker Promises To Lower Costs
7/3/2025 | 2mVideo has Closed Captions
In a near-unanimous vote, California senators approved a bill allowing car dealers to raise document processing fees to $500 per sale. Lawmakers say it offsets regulatory costs, but critics say it contradicts promises to lower costs for Californians.
Problems playing video? | Closed Captioning Feedback
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Learn Moreabout PBS online sponsorship-The California Senate, overwhelmingly with bipartisan support, approved legislation that would allow car dealers to charge buyers up to $500 on each vehicle purchase.
It was a blatant departure from the promises both parties made this year to lower costs for Californians.
Yet in June, just one senator voted against the bill raising the fees car dealers could charge.
California car dealers say they need to be able to raise fees to cover the rising costs that come with processing the paperwork required to buy a vehicle, such as loan documents and DMV forms.
The increased fees would be charged separately from the purchase price.
Anthony Sampson, the car dealers lobbyist, told the Senate Transportation Committee in April that lawmakers continually pass new laws that add costs on car dealers and other California businesses.
He said other businesses can adjust charges, but auto dealers must continue to come back to the legislature to ask permission.
The vote comes amid reports that auto dealers are using creative tactics to maintain profits without raising sticker prices to compensate for the Trump administration's expected tariffs.
The bill's author, Dave Cortese, told CalMatters that he and his colleagues are still focused on affordability, and they may lower the proposed fee, but car dealers should still be allowed to raise costs.
-California's document processing charge is by far the lowest in the nation even though our state imposes the most stringent obligations on dealers than any other state.
At a fundamental level, this bill simply seeks to allow critical California businesses and ones that greatly contribute to our local and state economies to recover the costs of doing business.
-The law would exempt the state from paying the fee when it buys vehicles for its fleet.
A handful of senators said they had reservations about the bill but didn't vote, which counts the same as voting no.
The widespread practice of not voting in the Capitol allows lawmakers to avoid accountability and blowback from moneyed interest groups.
For CalMatters, I'm Ryan Sabalow with additional reporting by Jeanne Kuang
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SoCal Matters is a local public television program presented by PBS SoCal