License fee vs Doc fee? (Minnesota)

[keen]

Does anyone know what goes into a “license fee” in the state of Minnesota? I have a separate line item for doc fees in my purchase agreement.

Doc fee is listed at $125 and license fee estimated between $1000-$1100. When I look at my state DMV’s document of all fees relating to a new vehicle title, they don’t seem to add up to $1000.

Is this a fee I can fight to reduce?

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[RickLightning]

Make the dealer break it down.

Note that EVs in many states get a "not using gas fee" when registered each year.

 

[dwayle]

My Total License and Fees were $749.50
Mine is a Pro, also in MN.

It's broken down as follows in the paperwork:
Registration Tax: $614
Plate Fee: $15.50
Public Safety Vehicle Fee: $3.50
Transfer Tax: $10
Title/Transfer fee: $85.50
State/Deputy filing fee: $11.00
Wheelage Tax: $10


My doc fee is also $125.

 

[keen]

My Total License and Fees were $749.50
Mine is a Pro, also in MN.

How much was the MSRP of your Pro?

My breakdown is

Filing Fee               11.00
Wheel                    20.00
License                 950.00
Transit Tax              20.00
Title                           8.25
Transfer Tax       10.00
Lien               2.00
Plate              15.50
SPV                3.50
Electronic Filing  40.00
Title Surcharge    2.25
--------------------------------------------
$1082.50

The $950 seems a bit high as I believe registration tax is only 1.285% (plus $10) which would come out to $821.

 

[keen]

Mystery solved. My salesperson just let me know that the $950 is a placeholder they put until actually doing the transaction on the day of delivery—and it'll be closer to the figure I calculated.

While I'm inclined to accept this explanation, I wonder if they conveniently "forget" to recalculate this "placeholder" unless the customer inquires. Maybe I am too cynical. First time working with this dealership.

 

[GDN]

Isn't the "Doc fee" just another dealer add on they've come up with over the years. A fee each dealer determines what their time is worth to handle the documentation and filing state paperwork?

 

[keen]

Isn't the "Doc fee" just another dealer add on they've come up with over the years. A fee each dealer determines what their time is worth to handle the documentation and filing state paperwork?

Yes.

As it is "standard industry practice" and I knew of it going in, I am not going to fight it. $125 seems reasonable from all the sources I've looked at. I would've fought a higher doc fee. What I will fight however is crap that I didn't expect going in.

 

[Its PJ Bia]

Yes.

As it is "standard industry practice" and I knew of it going in, I am not going to fight it. $125 seems reasonable from all the sources I've looked at. I would've fought a higher doc fee. What I will fight however is crap that I didn't expect going in.

My dealer wants $579 for the doc fee

 

[keen]

My dealer wants $579 for the doc fee

Yikes! If I were in that situation, I would definitely be fighting that.

 

[Its PJ Bia]

Yikes! If I were in that situation, I would definitely be fighting that.

It's different state to state, but it is just a made up fee. Some dealers around me offer zero doc fees, but of course not the ford dealer

 

[dwayle]

How much was the MSRP of your Pro?

My breakdown is

Filing Fee               11.00
Wheel                    20.00
License                 950.00
Transit Tax              20.00
Title                           8.25
Transfer Tax       10.00
Lien               2.00
Plate              15.50
SPV                3.50
Electronic Filing  40.00
Title Surcharge    2.25
--------------------------------------------
$1082.50

The $950 seems a bit high as I believe registration tax is only 1.285% (plus $10) which would come out to $821.

My MSRP was $52769, but that includes destination. In MN, I think they base it off of the value, which they get from the state. You can get an estimate here, which does include the value: https://onlineservices.dps.mn.gov/EServices/_/#4

The registration tax estimate for mine is $553, a bit lower than the $614 the dealer charged me.

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