Before You Start. See Overview: Software Costs â Capitalize vs. Expense. For invoices having a combination of eligible and ineligible costs, a reasonable attempt to split the respective costs should be made and rationale should be documented. See Overview: Buying and Accounting for Capital Equipment for information on hardware expenditures.
Instead, you're focused on the price you pay overall, and if the dealer wants to include a doc fee in that price, then so be it. For instance, say you have a $30,000 budget and you're looking at a $28,000 car with a $500 doc fee. Add in a 7-percent sales tax, and this car costs $30,495.
Title and registration. Let the dealership handle the formalities of establishing you as the new owner of the vehicle and obtaining temporary tags. Expect the dealer to pass along what the state chargesâtypically between 1 percent and 3 percent of the vehicleâs costâplus a documentation fee.Sales tax. Some states calculate tax on the full price of the car, but most figure tax on the difference between the price of the new car and the trade-in, if appropriate.Destination charge. A standard charge that covers shipment of the vehicle. Question any secondary âdelivery feeâ thatâs listed on the contract.ee. What it's about. Unavoidable. Documentation fee or conveyance charge. A charge of $150-$300 for processing documents that establish your title and registration is reasonable. Question any charges that are higher than $300.