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3d ago

California Senate Approves Bill Raising Car Dealers’ Documentation Fees to $500

Lawmakers will consider amendments in the Assembly that could roll back the maximum processing fee.

Auto registrations show 2.67 million used-auto sales were recorded in California through September, 8% below last year. In 2019’s first nine months, sales had risen 1% vs. 2018. (AP Photo/David Zalubowski)

Overview

  • The Senate approved SB 791 by a vote of 27 to 1, with 20 Democrats and 7 Republicans in favor and Sen. Henry Stern casting the sole opposing vote.
  • The bill increases the cap on dealers’ document processing fees from $85 to as much as 1 percent of a vehicle’s purchase price, up to $500.
  • Sen. Dave Cortese, who authored the measure, is working with the California New Car Dealers Association to negotiate a lower fee ceiling before Assembly consideration.
  • Dealers argue the higher fees are necessary to cover rising costs for handling loan documents, DMV registration and fraud-prevention forms, while consumer advocates warn the change contradicts affordability promises.
  • The California New Car Dealers Association has donated at least $2.9 million to lawmakers since 2015 and contributed $7,000 to Cortese’s campaign during that time.