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A dealer prep fee is negotiable

A prep fee is what a dealer charges for getting the car ready for delivery. On a California dealer quote it is a dealer charge, not a government fee, so it is negotiable. A dealer charge, not a government fee. Negotiable.

Dealer prep is negotiable. Ask for it to come off the price. A dealer may not charge for an add-on you would not benefit from, and pricing and add-on disclosures must be clear and conspicuous.

Source: California's CARS Act (SB 766, Stats. 2025 ch. 354), checked October 25, 2026.

The words to send the dealer

Please remove the dealer prep charge.

Check your whole quote

Paste the dealer's email or type the lines. Every line is marked required, negotiable or optional under California rules, with the message to send back.

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Questions

Is a dealer prep fee required?

No. It is a dealer charge, not a government fee, so you can ask for it to come off.

Is this the same as the destination charge?

No. On a new car the destination charge is set by the manufacturer and printed on the window sticker. A prep fee is the dealer's own charge.

What about reconditioning on a used car?

Also a dealer charge. Getting the car ready to sell is part of its price.

More for your dealer visit