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American Bar Association sues Trump administration over executive orders targeting law firms; Florida universities face budget scrutiny as part of 'anti-woke' push; After Hortman assassination, MN civic trainers dig deeper for bipartisanship.

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Political tensions rise after Minnesota assassinations. Trump's DOJ demands sweeping election data from Colorado. Advocates mark LGBTQIA+ pay inequity, and U.S. and U.K. reach a new trade deal.

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EV charging stations are harder to find in rural America, improving the mental health of children and teachers is the goal of a new partnership in seven rural states, and a once segregated Mississippi movie theater is born again.

CA Senate to vote on bill to allow car dealers to increase fees

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Tuesday, June 3, 2025   

When you buy a car in California, the most the dealer can charge to process the sales documents is $85 but the cap could be raised to $500 if Senate Bill 791 becomes law.

The bill already passed several committees and is expected to get a vote in the full state Senate this week.

Rosemary Shahan, president of Consumers for Auto Reliability and Safety, argued the measure would harm consumers.

"It's a huge giveaway to car dealers, including multibillion-dollar corporations like Tesla, Auto Nation, CarMax," Shahan outlined. "They're the ones that will benefit the most at the expense of California car buyers."

The bill's author, Sen. Dave Cortese, D-San Jose, did not respond to a request for comment by our deadline, but has said in the past car dealers have to do a lot of work processing the sales contracts, and deserve to recover their costs. The bill would allow dealers to charge up to 1% of the sales price or a maximum of $500.

Document processing fees can surpass $1,000 in other states without a cap. Shahan noted some dealers like Carvana do not charge a document processing fee.

"If you belong to AAA, they offer this service of handling, registering the car for free or for a very minimal cost," Shahan pointed out. "When you look at other states, there are some states that have no caps on the document fee, and it's crazy how much the dealers get away with charging people. But if this bill becomes law, instead of having the best cap for consumers, California would have one of the worst."

Shahan added car dealers typically make most of their profits at the "back end" on financing and various add-ons. The California New Car Dealers Association is backing the bill.

Disclosure: The Consumers for Auto Reliability and Safety Foundation contributes to our fund for reporting on Consumer Issues, Environmental Justice, and Social Justice. If you would like to help support news in the public interest, click here.


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