2018 GNYADA Membership Directory

THE LOWDOWN ON PREPRINTED FEES

Dealers often ask the Association whether they can preprint charges, such as prep fees or dealer markup, on their invoices. Our answer: The only preprinted charge you should have on your buyers order is the doc fee, which is specifically authorized by DMV regulations and currently set at $75. Dealers who preprint charges on buyers orders have been the target of past AG and DMV enforcement. Preprinting charges can make them appear to be mandatory or state imposed. Additionally, the AG’s office has argued that adding an additional fee after you have negotiated a price with a consumer could be a deceptive practice. A preprinted fee for some specific item could subject you to charges that you are “packing” the deal. In addition to enforcement by the state, you could be opening the door to a class action lawsuit. Including language in a footnote that the extra charge is an additional markup or dealership profit probably won’t save you from potential legal action if you preprint a charge on the buyers or lease order.

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Repair Orders & Shop Supplies: DMV has maintained that no preprinted fees are permitted on repair orders.

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Charges for the disposal of waste materials such as antifreeze, brake fluid, and solvents must be clearly identified and itemized on repair orders and advertising. Charges for these items must be reasonable and must be limited to those repairs where such materials actually were included in the repair. The same rule applies to shop supplies such as nuts, bolts, or cleaners. Further, state law prohibits additional charges for accepting some waste (such as waste oil) and you must avoid those charges as well.