What are "dealer fees"?

What are "dealer fees"?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: What does "total" mean on the sticker price?; What is a "test drive"?; What is the difference between unleaded, regular, super and diesel? and more...

“Dealer fees” are really just a way of ensuring that the dealer makes some degree of profit on the vehicle sale. The actual sale of the vehicle is probably a very small portion of the dealership's complete financial picture. Most of the dealer's profit is going to come from service and aftersales, so they try to maintain and hold any last penny they can from the sale of the vehicle. Some of the dealer fees are negotiable, and some not, and are all a way of holding up their profitability.