By law, the dealer can charge $50 for documentation. They can also
charge anything they like for advertising, prep, 'rustproofing',
'undercoating', etc. Those are negotiable. The $50 documentation fee
most likely will not be negotiable.
State law in Texas restricts dealers to a $50 documentation fee for
filing tax, title and registration forms. The rest of the money in a
prep fee likely covers dealership overhead and adds profit.
Additionally, title and registration fees, as well as taxes will be
added onto the cost of the car. Titles cost $13. Taxes are 6.25% of
the purchase price. Registration fees vary; The cost for cars made in
1994 or earlier is $41.80; for cars made in 1995- 1997 it is $51.80;
and for cars made in 1998 or later it is $59.80. These numbers may
have changed since the article was published.
Information from the Houston Chronicle, October 29, 2000, "Here's way
to play the car-wars game" by Shannon Buggs
texas used car dealer fees OR fee
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