What is an administration fee when buying a car?
If you’ve ever purchased a new car, you’ve probably seen an administration fee on your final bill (if you haven’t yet purchased a car, you can expect to see that). While some parts of the final bill, such as sales tax, are pretty self-explanatory, the administration fee may not be. Find out what this fee is and what it covers below!
When purchasing a new car, you may find “transportation and administration” fees together. The transportation fee, as you can probably gather from the name, is a fee that allows the dealership to recoup the costs they incurred to bring the vehicle to the dealership for you. you shouldn’t have to pay this unless the dealership is bringing it there for you. Otherwise, the administration fee refers to the labors put into processing the upfront costs or lease agreement.
Sometimes, the administration fee may also include registering the vehicle, applying for a title, or other paperwork the dealership is putting in for you. Generally, fees charged by dealerships are regulated by the state and can be double-checked to ensure their credibility.
Here at Third Coast Auto, we understand that the car buying process can be a tough one. Because of that, we encourage you to ask questions, including those about fees that you don’t understand. We charge fair prices on all our used vehicles, so you may find that our prices are unmatched by local competitors! Learn more when you contact us today.