OMVIC Practice Test

Can a dealer charge a documentation fee?

1. No, it is illegal

2. Yes, but it must be disclosed

3. Yes, without any justification

4. No, only sales tax can be charged

The correct answer is: Yes, but it must be disclosed

A dealer can charge a documentation fee, and it is important that this fee is disclosed to the customer. Transparency is a key factor in the vehicle sales process, and dealers are required to inform buyers of any additional charges that will be applied. Disclosing the documentation fee ensures that consumers have a clear understanding of the total cost of their purchase and can make informed decisions. The requirement for disclosure helps protect consumers from unexpected charges and promotes fair business practices in the automotive sales industry. This practice is aligned with consumer protection regulations that aim to provide buyers with all necessary information before finalizing a transaction. By ensuring that documentation fees are disclosed, dealerships can maintain compliance with legal requirements while fostering trust with their customers.