Understanding "DMV Fee" from a pre-negotiated deal

Ask the Hackrs
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Located in Alabama. Looking at a pre-negotiated deal on a Mazda CX-30. Broker has (on its website) the quote listed as $38 in DMV fees when using our Alabama ZIP for registration. The Quote we got back after submitting an inquiry shows $500 (calculated / estimated) for the DMV fee instead.

From what I can tell, the state of Alabama only has about $38 total in fees for a new vehicle registration under 6,000lbs. I asked the broker if the dealership (apparently out-of-state) is going to refund the difference between the $500 flat DMV fee and the actual amount paid to the DMV , and the broker said “no.” ) Is this correct? Is a dealership allowed to make a profit off the DMV fees? Almost everywhere else I’ve read online that he dealership will refund you the difference by check within a month or so…

This is a very highly respected broker on this site, so I “believe” them, but how does that make sense? Thanks for any guidance.

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DMV fees can vary. I always try to over-estimate. However, “registration” fees don’t just include the DMV fees. There are title costs, tire taxes, other misc. fees depending on the state, agency fees for registering a car, such as from a dealership out of state, and many states also have temp tag fees.

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Thank you. That is helpful, Ashleigh.

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It doesn’t.

If they put that $462 in another line item and put $38 in the DMV fee line then you’ll get no refund.

They already told you they’re going to pocket it. So that’s exactly what they’re going to do.

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