Vehicle dealers: document processing charge.

Existing law authorizes a dealer to charge the purchaser or lessee of a vehicle a document processing charge for the preparation and processing of documents, disclosures, and titling, registration, and information security obligations imposed by state and federal law. Existing law authorizes a dealer that has a contractual agreement with the Department of Motor Vehicles to be a private industry partner to set the document processing charge at up to $85 and authorizes all other dealers to set the document processing charge at up to $70.

This bill would, until January 1, 2031, subject to specified requirements, authorize a dealer to charge a document processing charge that exceeds those amounts if the charge does not exceed 1% of the total price of the vehicle and does not exceed $260. The bill would exempt the sale of vehicles to the State of California and any local governmental entity from these provisions. The bill would make a conforming change.