Understanding Our Documentation Prep Fee
At Mastria Auto Group, we believe in complete transparency with our customers. When you purchase or lease a vehicle, you might notice a fee called the Documentary Preparation Fee, or doc prep fee. This fee is important for several reasons, and we want to ensure you understand what it covers and why it's necessary.
What Are Vehicle Doc Fees?
The Documentary Preparation Fee, also known as the "doc prep fee," is allowed by Massachusetts law to be collected from vehicle purchasers by Massachusetts dealers. This fee is charged to offset the costs incurred by the dealership in processing various paperwork associated with a sale or lease that are separate from those paid to acquire the vehicle.
Why Do We Charge a Doc Prep Fee?
The doc prep fee recognizes some of the costs related to a dealer's compliance with federal and state laws and regulations that provide for safety, consumer protection, anti-theft measures, vehicle history checks, notifications, certifications, and official filings. Here’s a breakdown of what the doc prep fee covers:
- Preparing a Purchase and Sale Agreement (P&S)
- Appraisal Documents
- Odometer Statements
- Insurance Verifications
- Storing or Archiving Documents
- Personnel and Computer Costs Associated with These Tasks
These tasks ensure that each transaction meets many legal requirements, providing customers with the necessary documentation and information.
Dealer's Responsibilities Include:
- Checking Vehicle Safety, History, and Titles: Ensuring the vehicle meets all safety standards and verifying its history.
- Providing Full Condition Information on the Window Label: Transparency about the vehicle’s condition.
- Discovering and Disclosing Accurate Vehicle Mileage: Confirming the vehicle’s mileage.
- Checking for Recalls on Used Vehicles Where Required: Making sure the vehicle has no outstanding recalls.
- Completing Required Forms and Contracts That Protect Your Interests: Handling all necessary paperwork.
- Complying with Consumer Paperwork Laws: Meeting all legal documentation requirements.
- Filing and Clearing Liens: Ensuring there are no financial encumbrances on the vehicle.
- Keeping Your Information Private and Secure: Protecting your personal information.
- Fulfilling Vehicle Emissions Laws: Complying with emissions regulations.
- Passing Along Manufacturer Information, Including Warranty Policies: Providing all relevant manufacturer details.
- Distributing State Lemon Law Notices: Informing you of your rights under state law.
- Processing Rebates on Your Purchase: Handling rebate submissions.
- Keeping You Informed of Your Rights and Obligations: Ensuring you understand all aspects of your purchase.
- Keeping Important Records of Your Purchases: Maintaining accurate records.
- Purchasing Required Forms and Supplies: Securing necessary documentation materials.
- Maintaining Appropriate Technology to Process Your Paperwork Faster: Using technology to streamline the process.
- Training Staff to Carry Out Laws That Protect You: Educating staff on compliance and customer protection.
- Maintaining Professional and Statutory Licenses, and Completing Necessary Education and Training Sessions That Ensure Quality Service: Staying up-to-date with industry standards and regulations.
Important Information
- Not all transactions involve the same services, but all transactions must meet many legal requirements.
- Actual expenses incurred and recovered through the documentary preparation fee may vary by dealer, location, and transaction.
- Customers must be aware that a portion of the dealer's doc prep fee is required by or remitted to any state or federal agency.
- The doc prep fee has nothing to do with the Title Preparation Fee, which is stated as a separate line item on the sales contract. It is capped by law at $5.