We, the undersigned, call on the Virginia State Legislature to introduce legislation that caps dealer processing fees at a maximum of $500.

Currently, Virginia dealerships often charge processing fees between $1,000 and $2,000, which can be misleading and cause unexpected costs for buyers. This lack of regulation leads to situations where the advertised price of a vehicle does not reflect the true cost after processing fees are added. This discrepancy can mislead consumers and result in frustration, particularly for those who travel long distances only to discover the actual cost of a vehicle is significantly higher than advertised.

Other states already have measures in place to cap dealer processing fees. For example, states like Louisiana, Maryland, Washington, and California have enacted regulations to limit these fees, ensuring more transparency and fairness in the car buying process. However, 35 states, including Virginia, do not currently have such caps, which leaves consumers vulnerable to deceptive practices.

Capping these fees at a reasonable amount would increase transparency in the car buying process, protect consumers from deceptive practices, and ensure that all Virginians have a fair and straightforward experience when purchasing a vehicle.

We urge our legislators to act on this issue and introduce measures to cap dealer processing fees to protect consumers and promote fair business practices.