Dealer “fees” can quietly add thousands of dollars to the price of a new car, and mechanics say many of them are little more than scripted scams. By understanding which charges are bogus and how they show up on contracts, you can push back confidently and keep your money in your pocket instead of padding a dealership’s profit.

1) The Bogus Dealer Preparation Fee

The bogus dealer preparation fee is a classic add-on that mechanics flag as pure fiction. Certified mechanic John Smith stated that the “dealer preparation fee, often $500-$1,000, is a scam because new cars arrive from the factory fully prepped and inspected, no additional work is needed beyond basic cleaning.” Modern assembly lines already handle fluid fills, torque checks, and electronic diagnostics, so you are essentially being charged for a quick wash and vacuum that should be part of normal delivery.

Because this fee is framed as a safety or quality step, buyers often feel guilty questioning it. In reality, Smith’s explanation shows there is no extra labor or parts behind the charge, only extra margin. If you see “dealer prep” on the buyer’s order, you can reasonably demand it be removed or offset with a matching discount, since the underlying work is already baked into the vehicle’s factory price.

2) Inflated Advertising Add-Ons

Inflated advertising add-ons are another line item that mechanics say has no legitimate basis. ASE-certified technician Maria Lopez explained that “advertising fees, averaging $300 per vehicle, are pure profit, manufacturers already cover national ads, so dealers pocket this without spending on local marketing.” Automakers like Toyota fund large-scale campaigns at the corporate level, which means the cost of TV spots and online banners is already built into the car’s sticker price.

When a dealer tacks on a separate “advertising” or “marketing” fee, you are effectively paying twice for the same promotion. Lopez’s point is that there is no specific, traceable local campaign tied to your purchase, only a vague justification that sounds official. Treat this fee as negotiable from the start, and if the salesperson insists it is mandatory, ask them to show a law or contract that requires you to fund their store’s generic advertising budget.

3) Overpriced Documentation “Processing”

Overpriced documentation “processing” fees exploit the fact that most buyers do not know what their state actually allows. Mechanic expert Tom Rivera noted that “documentation fees in states like California can hit $85 legally, but many dealers inflate to $800+ for ‘paperwork’ that’s automated and takes 5 minutes.” The core tasks, printing contracts, submitting electronic title applications, and filing registration forms, are handled by software that the dealership already uses for every sale.

When you see a doc fee that is several times higher than your state’s cap or typical range, Rivera’s explanation makes clear that the difference is pure markup. The stakes are significant, an $800 charge on a modest compact car can wipe out the value of a hard-fought price negotiation. Before signing, look up your state’s maximum allowed documentation fee and insist the dealer match it, or compensate with a lower sale price so you are not paying hundreds for a few keystrokes.

4) Worthless VIN Etching Services

Worthless VIN etching services prey on understandable fears about theft. A 2023 mechanic panel reported that “VIN etching services, charged at $200-$500, use cheap acid kits worth $20, it is ineffective against theft as pros bypass it easily.” The process involves stenciling your vehicle identification number onto the glass, something any owner can do at home with an inexpensive kit from an auto parts store or online retailer.

Dealers often claim this etching will dramatically reduce theft risk or lower your insurance premium, but the panel’s findings show professional thieves simply replace glass or target other components. You end up paying a huge markup for a cosmetic mark that offers little real-world protection. If you like the idea of etched glass, buy your own kit and apply it yourself, instead of accepting a pre-printed add-on that quietly inflates your out-the-door price.

5) Phony Market Adjustment Surcharges

Phony market adjustment surcharges are among the most expensive dealer “fees” mechanics criticize. In a 2022 interview, mechanic Dave Chen pointed out that “market adjustment fees, sometimes $2,000-$5,000 on popular models like the Toyota RAV4 in 2022, are invented surcharges with no basis in actual supply costs.” These line items appear as “market value adjustment” or “additional dealer markup” and are justified with vague references to demand.

Chen’s description makes clear that these charges are not tied to higher shipping, parts, or labor expenses, they are simply what the dealer thinks the market will bear. For you, that can mean paying thousands above MSRP for a mainstream vehicle that will later sell at or below sticker once supply normalizes. The most effective response is to treat the markup as fully negotiable, or walk away and shop other dealers that sell at MSRP instead of hiding profit behind a fake “market” fee.

6) Duplicated Destination Charges

Duplicated destination charges take a legitimate factory cost and quietly double it. Technician Sarah Kim explained that “destination charges, officially $1,000-$1,500 from factories, are often doubled by dealers to $2,000-$3,000, claiming ‘local delivery’ that is already included.” The original destination fee, printed on the window sticker, covers transporting the car from the assembly plant or port to the dealership, and it is the same for every buyer of that model.

When a dealer adds a second “delivery” or “destination” line on the contract, Kim’s reporting shows they are charging you twice for the same trip. That extra $1,000 or more goes straight into the store’s profit column without any additional service or logistics. Always compare the contract’s destination figure to the Monroney label on the car, and refuse to pay any duplicate or inflated amount that exceeds the official factory charge.

7) Useless Paint Protection Upsells

Useless paint protection upsells are another favorite target of working mechanics. A 2023 survey of 50 mechanics found that “paint protection or sealant fees, priced at $400-$800, apply a worthless wax layer, real protection requires professional ceramic coating costing far less wholesale.” Dealers often describe these treatments as advanced polymers or long-term shields, but in practice they are quick wipe-on products that resemble basic wax.

The survey’s comparison to true ceramic coatings highlights the gap between marketing and reality. Professional coatings involve surface prep, multiple layers, and curing time, yet still cost the dealer far less than the upsell price. For you, that means paying hundreds for a shine that may last only a few months. If you want durable protection, budget for a reputable detailer after purchase instead of accepting a vague “paint package” on the finance menu.

8) Fake Fabric Guard Treatments

Fake fabric guard treatments follow the same playbook, only inside the cabin. Mechanic expert Luis Garcia noted that “fabric protection sprays, at $200-$600, are just Scotchgard knockoffs applied in seconds, they wear off quickly and do not prevent stains as claimed.” The dealership typically sprays seats and carpets with a generic repellent, then folds the cost into your financing so the markup is less obvious.

Garcia’s comparison to consumer products like Scotchgard shows you could achieve similar or better results yourself for a fraction of the price. The real risk is that you believe the interior is “protected” and let your guard down with spills or kids’ car seats, only to discover the coating offers little resistance. If stain resistance matters, buy a trusted spray and apply it periodically, or invest in removable seat covers instead of a one-time dealer spritz.

9) Nitrogen Tire Inflation Rip-Offs

Nitrogen tire inflation rip-offs dress up basic air service as a premium science upgrade. Mechanic Rachel Patel stated that “nitrogen tire inflation fees of $50-$100 are a rip-off, regular air is 78% nitrogen anyway, and it provides no measurable benefit over standard fill-ups.” Dealers pitch nitrogen as a way to improve fuel economy, stabilize pressure, or extend tire life, but Patel’s assessment undercuts those promises for everyday driving.

Because standard compressed air is already mostly nitrogen, any marginal difference in pressure loss or temperature stability is negligible for normal commuters. You also lose the convenience of topping off at any gas station if you want to maintain “pure” nitrogen. Instead of paying a dedicated fee, focus on checking tire pressure monthly with a reliable gauge and keeping tires inflated to the manufacturer’s recommended PSI, which delivers the real safety and efficiency gains.

10) Sham Environmental Cleanup Fees

Sham environmental cleanup fees trade on legitimate concerns about waste disposal while providing no real service on new cars. Veteran mechanic Mike Thompson revealed that “environmental or cleanup fees, around $100-$300, cover ‘disposal of old fluids’ but are unnecessary since new cars have no old fluids to dispose of.” That kind of charge makes sense on a major repair involving used oil, coolant, or brake fluid, not on a vehicle that just rolled off the assembly line.

Thompson’s point is that dealers are repurposing a shop fee from the service department and slipping it into sales contracts where it does not belong. For buyers, that means paying a triple-digit surcharge for a disposal job that never happens. If you see an environmental or cleanup fee attached to a brand-new car purchase, challenge it directly and make clear you will not pay for fluid disposal that, according to the mechanic’s account, is not actually required.