The economy might not be in its best shape right now, and the situation could get even tougher for car buyers this year if a new bill passes in California.
Senate Bill 791 proposes a substantial increase in the notorious extra fees (or “junk fees”) in favor of dealerships.
According to the nonprofit CalMatters, the California Senate approved Bill 791, which aims to raise dealer fees from the current $85 to as much as $500, depending on the vehicle’s price, which means a 488% increase. This fee covers what dealerships charge for “processing documents” when buying a new or used car.
California car dealers argue that raising fees is necessary to cover the increasing expenses involved in handling the paperwork required to buy a vehicle, such as loan documents, DMV registration, and fraud protection forms. These fees are charged in addition to the vehicle’s purchase price.
The bill has now advanced to the Assembly, where more discussions are anticipated, especially about the fee cap. It still needs Governor’s approval to become law. The legislation excludes state vehicle purchases from the fee, and additional changes to the bill could be made before it is finalized.