Vehicle dealers: document processing charge.
- Authorizes car dealers to charge document processing fees up to $350 or 1% of vehicle price, whichever is less.
- Requires dealers to prominently display fee notices and provide written disclosures to customers.
- Exempts vehicle sales to state and local government entities from the increased fee provisions.
- Prohibits dealers from representing document processing charges as government fees.
Senator Cortese's vehicle dealer legislation revises California's document processing fee structure, allowing dealers to charge up to 1% of a vehicle's total price or $350, whichever is less, for document preparation and processing. This change modifies existing limits of $85 for dealers partnered with the Department of Motor Vehicles and $70 for other dealers.
The bill establishes new disclosure requirements for dealers charging these higher fees. Dealers must display prominent notices in sales offices explaining the variable fee structure and provide customers written documentation of specific charges before finalizing sales contracts. The notices must clarify that document processing charges are not government fees. Sales to state and local government entities are exempt from these revised fee provisions.
To maintain transparency in vehicle advertising, dealers must include clear statements about additional charges, including the maximum $350 document processing fee. The legislation preserves existing consumer protections regarding fee representations, prohibiting dealers from characterizing document processing charges as government fees or collecting unauthorized charges for document preparation services.
 Tony StricklandR Senator | Bill Author |  Not Contacted | |
 Phillip ChenR Assemblymember | Bill Author | Not Contacted | |
 Heath FloraR Assemblymember | Bill Author | Not Contacted | |
 Joaquin ArambulaD Assemblymember | Committee Member | Not Contacted | |
 Buffy WicksD Assemblymember | Committee Member | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 11 | 0 | 5 | 16 | PASS |
- Authorizes car dealers to charge document processing fees up to $350 or 1% of vehicle price, whichever is less.
- Requires dealers to prominently display fee notices and provide written disclosures to customers.
- Exempts vehicle sales to state and local government entities from the increased fee provisions.
- Prohibits dealers from representing document processing charges as government fees.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senator Cortese's vehicle dealer legislation revises California's document processing fee structure, allowing dealers to charge up to 1% of a vehicle's total price or $350, whichever is less, for document preparation and processing. This change modifies existing limits of $85 for dealers partnered with the Department of Motor Vehicles and $70 for other dealers.
The bill establishes new disclosure requirements for dealers charging these higher fees. Dealers must display prominent notices in sales offices explaining the variable fee structure and provide customers written documentation of specific charges before finalizing sales contracts. The notices must clarify that document processing charges are not government fees. Sales to state and local government entities are exempt from these revised fee provisions.
To maintain transparency in vehicle advertising, dealers must include clear statements about additional charges, including the maximum $350 document processing fee. The legislation preserves existing consumer protections regarding fee representations, prohibiting dealers from characterizing document processing charges as government fees or collecting unauthorized charges for document preparation services.
Latest Voting History
| Ayes | Noes | NVR | Total | Result |
|---|---|---|---|---|
| 11 | 0 | 5 | 16 | PASS |
Tony StricklandR Senator | Bill Author | Not Contacted | |
Phillip ChenR Assemblymember | Bill Author | Not Contacted | |
Heath FloraR Assemblymember | Bill Author | Not Contacted | |
Joaquin ArambulaD Assemblymember | Committee Member | Not Contacted | |
Buffy WicksD Assemblymember | Committee Member | Not Contacted |