Car Dealer Fees By State

In the journey of purchasing a new car, understanding the intricacies of car dealer fees is as critical as choosing the many features available in your dream automobile. On top of the car's sticker price, these fees can form an important chunk of the total cost you ultimately pay. Dealer fees, comprising of sales tax, vehicle registration, and a documentation fee, among others, can vary vastly by state, affecting the overall affordability and feasibility of purchasing a new car. Car dealerships across the United States, with only a few exceptions, are not legally bound to stick to a specific dealer fee. This results in a wide range of dealer costs nationwide, from as low as $315 in Alaska to an astoundingly high $6,369 in Louisiana. Key findings from the data include:

• The Southern state of Louisiana has the highest dealer fee in the U.S. at $6,369, with Colorado and Arizona following closely at $5,890 and $5,791 respectively.
• In stark contrast, Alaska boasts the lowest dealer fee at a mere $315 - an astounding difference of over $6000 when compared to Louisiana.
• The majority of states, including populous ones like California and New York, have new car dealer fees ranging between $2,000 and $4,000.
• While Southeastern states such as Louisiana, Alabama, and Florida have significantly higher dealer fees, Northwestern states like Alaska, Oregon, and Montana tend to have the lowest charges.
• Interestingly, despite Florida's high new car dealer fees, it boasts the highest dealer documentation fee in the United States at $607.