What common fees must dealers collect during a vehicle sale?

During a vehicle sale, it is crucial for dealers to collect certain fees that are standard in the transaction process. Registration, transfer, and licensing fees are common fees that must be collected. These fees are necessary for ensuring that the vehicle is legally registered in the new owner’s name, that the title is properly transferred from the seller to the buyer, and that the vehicle is licensed for operation on public roads.

These fees are often mandated by state regulations and are part of the legal requirements for vehicle ownership transfer. Collecting these fees helps the dealer ensure compliance with state laws and facilitates a smooth transaction for both the dealer and the buyer. This is especially important because registration and title processes can vary significantly from one state to another, and it is the dealer's responsibility to ensure all legal documentation is handled appropriately.

In contrast, while fees such as advertising and marketing, sales tax, and vehicle storage may be relevant to dealership operations, they are not universally required at the time of sale like registration, transfer, and licensing fees are.