That grinding sound you hear isn’t a bad transmission. It’s California lawmakers steamrolling car buyers with Senate Bill 791, a dealer-friendly law that just passed 39-1 in the state Senate.
The bill cranks documentation fees from the current $85 cap to a staggering $500 maximum. That’s not a typo—dealers can now tack on nearly six times their previous fee ceiling for shuffling the same paperwork they’ve always handled.
When Lobbying Creates Legislation
The California New Car Dealers Association didn’t just stumble into this windfall. They’ve invested heavily in legislative relationships since 2015, with targeted contributions to key lawmakers, including Senate Republican leader Brian Jones, who has accepted at least $28,700 from the dealers’ association.
Those numbers tell the real story. Dealers claim rising business costs justify the fee hike, but documentation hasn’t become five times more expensive overnight. This is about extracting maximum profit from a captive customer base.
The lone dissenting vote came from Senator Henry Stern, who delivered the truth: “The car dealers haven’t earned the trust to justify this major increase in junk fees… Bad behavior shouldn’t be rewarded.”
A Pattern of Fee Creep
This isn’t California’s first rodeo with dealer fee increases. Back in 2011, lawmakers raised documentation fees from $55 to $80—a modest 45% bump that seems quaint compared to today’s 500% explosion. That earlier hike followed similar industry lobbying but faced more resistance.
Consumer advocates see the escalating pattern. “This is the opposite of saving money for people… just benefiting car dealers at the expense of car buyers,” said Rosemary Shahan of Consumers for Auto Reliability & Safety.
The fee structure hits different buyers unequally. First-time buyers stretching for basic transportation —or those navigating niche purchases like buying lowered cars— face the same $500 hit as luxury car purchasers. Young adults already dealing with student loans and housing costs get slammed hardest.
Pure Profit Disguised as Operating Costs
Documentation fees represent the purest form of dealer markup. Unlike financing or extended warranties, these charges generate zero additional value for buyers. You’re paying $500 for the same DMV paperwork processing that cost $85 yesterday. It’s no wonder more consumers are turning to private sales on platforms like Facebook Marketplace, where dealer fees vanish entirely, though buyers must navigate risks and handle paperwork themselves.
With California’s average new car price hitting $48,699, most buyers will face the full $500 hit. That’s like getting charged a monthly Netflix subscription every time you buy a car—except Netflix provides entertainment value.
What Happens Next
The bill heads to the California Assembly, where amendments might dial back the $500 ceiling. Bill author Senator Dave Cortese suggests he’s willing to negotiate lower caps to secure Governor Newsom’s signature.
Don’t count on meaningful reform. The same influence that delivered a 39-1 Senate vote operates throughout California’s legislature. Unless Assembly members hear serious pushback from constituents, expect dealers to keep their newfound revenue stream.
This isn’t about covering legitimate business expenses. It’s about extracting maximum profit from mandatory transactions while hiding behind regulatory complexity. California car buyers deserve better than becoming subscription services for dealer associations with deep pockets.
