What is the legal status of doc fees charged by dealers in Colorado?

The legal status of doc fees in Colorado requires that they must be reasonable and clearly disclosed to customers. This means that dealers are permitted to charge a documentation fee, but they need to ensure that the amount is fair and justified for the services rendered, such as paperwork processing related to the sale of the vehicle. While there is no specific cap on the amount that can be charged, the fee must be communicated transparently to maintain compliance with state regulations.

This approach helps protect consumers from excessive charges and ensures that fees are consistent with the cost of providing the required documentation services, promoting fair business practices in the automotive sales industry in Colorado.