I-Team Blog: “Feed” to death
If you’re in the market for a new or used car or truck, you may want to be sure you check the charges before you sign on the dotted line. A new study by state officials found that 70 percent of dealerships were charging quote “questionable fees.”
Jayda Leder-Luis from the State Office of Consumer Affairs and Business Regulation told the 22News I-Team that Massachusetts Car Buyers are being charged hundreds of dollars in documentation fees. She said these “documentation preparation” fees can range as high as $400, and are supposedly for processing paperwork and storing documents.
Leder-Luis said the Office of Consumer Affairs surveyed almost 190 car dealerships in Massachusetts. The survey asked if these fees were charged, the amount of the fees, and the reason behind the fees. She said that 70 percent of the dealerships called charged the fees, which ranged from $45 to $399.
She said that many of the reasons given for the fees appeared to be very questionable and literally made up by the auto dealerships. Reasons ranged from a 9/11 security fee to storing documents for eight years at downtown Crossing to paying insurance agents.
So state officials want to warn you to be aware of this if you’ll be taking advantage of any Presidents’ day auto sales.
Barbara Anthony, the Undersecretary of Consumer Affairs and Business Regulation told 22News “As consumers gear up for Presidents’ Day sales, they need to know that in most instances dealerships are hitting them with unnecessary fees claiming they are for paperwork and documents. We found that many car dealerships are charging consumers exorbitant fees for costs that are negligible and in some cases telling car buyers these are required charges by state or federal law, which just isn’t true.”
She said you need to look closely at what you are being charged for, and you should shop around, especially if a particular dealership tries to charge you non-negotiable documentation fees.
The Office of Consumer Affairs plans to refer some of these car dealerships to Attorney General Martha Coakley’s Office for further investigation.
Click here and scroll down for a look at the survey, and to find out what documentation fees local dealerships are charging.