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Yes. That's the "Documentation Fee". It's supposed to cover the costs of paperwork for your vehicle. In all reality, it's just extra profit for the dealership.

You'll be charged one at every dealer you go to. The fee may vary, but it will always be there.

It's perfectly legal though.

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Documentation fees are legal when buying a new car. In some states the doc fee is capped however. In Colorado there is no limit that the dealer can charge you for the doc fee. $400 sounds very high with dealer profit tucked in there.

In California it's $45. You can see the list here in the article What Fees Shouldn't You Pay http://www.edmunds.com/advice/buying/articles/117494/article.html

Source: http://www.edmunds.com/advice/buying/art...

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