Advertiser Disclosure

12 States Where Dealers Charge a Lot Less Fees To Sell You a Used Car Over a New One

April 7, 2024

3 min Read

Written by Chris Ozarowski

Edited by Levi Leidy

Commitment to Our Readers

GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.

20 YearsHelping You Live Richer

Reviewed by Experts

Trusted by Millions of Readers

Buying a car is a significant investment, and one of the main decisions car buyers have to make is the choice between new and used. One factor many may overlook when deciding is the fees car dealerships charge for each option. Dealer fees can vary widely from state to state and can add a surprising amount to the final price of a vehicle. In some states, the difference in dealer fees between new and used cars can be hundreds or even thousands of dollars.

Here are 12 states where dealers charge a lot less in fees to sell you a used car over a new one.

Louisiana

Average Dealer Fees: $5,429
Dealer Fees for New Cars: $6,369
Dealer Fees for Used Cars: $4,489

Alabama

Average Dealer Fees: $4,807
Dealer Fees for New Cars: $5,490
Dealer Fees for Used Cars: $4,123

Arizona

Average Dealer Fees: $5,095
Dealer Fees for New Cars: $5,791
Dealer Fees for Used Cars: $4,399

Arkansas

Average Dealer Fees: $4,284
Dealer Fees for New Cars: $5,045
Dealer Fees for Used Cars: $3,522

Colorado

Average Dealer Fees: $5,194
Dealer Fees for New Cars: $5,890
Dealer Fees for Used Cars: $4,498

California

Average Dealer Fees: $4,308
Dealer Fees for New Cars: $4,960
Dealer Fees for Used Cars: $3,655

Top Offers for {{current_month-name}} {{current_year}}

Kansas

Average Dealer Fees: $4,114
Dealer Fees for New Cars: $4,772
Dealer Fees for Used Cars: $3,455

Nevada

Average Dealer Fees: $4,051
Dealer Fees for New Cars: $4,572
Dealer Fees for Used Cars: $3,530

Florida

Average Dealer Fees: $4,127
Dealer Fees for New Cars: $4,655
Dealer Fees for Used Cars: $3,599

New York

Average Dealer Fees: $3,199
Dealer Fees for New Cars: $3,751
Dealer Fees for Used Cars: $2,647

Utah

Average Dealer Fees: $3,536
Dealer Fees for New Cars: $4,099
Dealer Fees for Used Cars: $2,973

Idaho

Average Dealer Fees: $3,341
Dealer Fees for New Cars: $3,900
Dealer Fees for Used Cars: $2,781

Takeaway

In these states, the differences in dealer fees between new and used cars can have a big impact on the total cost of buying a vehicle. Before you make it official and get those keys, think about how these extra costs fit into your budget.

If you do buy used, make sure to check the condition of the vehicle thoroughly. If the car will need expensive replacement parts soon, you might be losing money on the deal.

More From GOBankingRates