Dealer fees › Dealer prep fee

Dealer prep fee: should you pay it?

Verdict: Junk. Getting the car ready to sell is part of the price; Consumer Reports says contest these charges. Ask for it to be removed.

What it is

A charge for washing, inspecting and readying the car for delivery, often printed on a second sticker next to the official window sticker or added as a line on the buyer's order.

Also shows up as: Dealer prep, Prep fee, PDI, Pre-delivery inspection, Vehicle prep, Dealer handling, Vehicle procurement.

Why it's junk

Consumer Reports says to contest predelivery inspection, dealer prep, vehicle prep and vehicle procurement charges: on a new car they're part of the mandatory destination charge (Consumer Reports).
FTC staff say any fee a dealer requires every buyer to pay must be included in the advertised price; only government charges can be left out (FTC).
Preparing a car to sell is a cost of doing business, like the lights and the lot, not a service you ordered.

How to get it removed

Compare the price you were quoted (or the advertised price) with the buyer's order.
Point out that prep is part of the price and ask for the line to be removed.
If the dealer won't, ask for the same amount off the vehicle price or walk away.
Get the corrected out-the-door price in writing.

Copy-paste script:

"Getting the car ready is part of the price you advertised, so I won't pay a separate prep fee. Please send me an updated out-the-door price with that line removed, and I can move forward today."

Is this fee on your quote? Snap or paste the quote and our free scan marks every line legit, negotiable or junk in seconds. Want an expert to check the whole deal? $19, money back if we find nothing useful.

Scan my quote free Check My Deal: $19

How TrustBuy flags it

Our free scan and the $19 report use the same rules as this page: a dealer prep fee line is marked Junk (ask for it to be removed). Rule note: Should be in the advertised price.

FAQ

Is a dealer prep fee legitimate?

Consumer Reports says to contest it: on a new car, prep is part of the destination charge on the window sticker. FTC staff say mandatory dealer fees must be included in the advertised price.

What's the difference between destination and dealer prep?

Destination is set by the manufacturer and printed on the official window sticker. A dealer prep fee is the dealer's own charge, often on a second sticker.