Understanding the documentary service charge included in every vehicle purchase or lease transaction.
Ohio Revised Code § 4517.261 expressly authorizes a licensed motor vehicle dealer to contract for and receive a documentary service charge on any retail or wholesale sale or lease of a motor vehicle. The charge is required to be specified in writing and is subject to a maximum established by the Ohio Registrar of Motor Vehicles, adjusted periodically for inflation using the Consumer Price Index.
Ohio Rev. Code § 4517.261 | Senate Bill 94, 135th General Assembly (eff. Oct. 24, 2024)
A documentary service charge — commonly referred to as a “doc fee” — compensates the dealership for the significant administrative work required to legally complete a vehicle sale or lease in Ohio. Every transaction involves extensive paperwork and regulatory compliance obligations imposed by both state and federal law.
The charge is a single, flat fee specified in writing on your purchase agreement. Ohio law does not require the fee to be itemized into individual services; however, the work it covers includes:
The Ohio General Assembly enacted R.C. § 4517.261 recognizing that selling or leasing a motor vehicle is among the most heavily regulated consumer transactions in the state. A dealer must comply with requirements from the Ohio Bureau of Motor Vehicles, the Ohio Attorney General’s Consumer Protection Section, the Federal Trade Commission, and multiple federal consumer lending statutes.
Rather than itemizing dozens of individual administrative costs, the law allows dealers to establish a single, transparent, capped documentary service charge disclosed uniformly across all transactions. This approach protects consumers through price certainty while allowing dealers to recover legitimate compliance costs.
Effective October 24, 2024, Ohio Senate Bill 94 updated the maximum allowable charge from $250 to a new CPI-adjusted rate — currently set at $398 or 10% of the vehicle’s cash price, whichever is lower. The Ohio Registrar of Motor Vehicles publishes the updated maximum each year on the last day of September.
Don Wood Automotive Group charges the same documentary service charge on every comparable transaction — we do not vary the fee by vehicle, customer, or negotiation. The amount is always disclosed in writing before you finalize any purchase or lease agreement.
If you have questions about this charge, please ask any member of our sales or finance team. We are happy to walk you through every line of your purchase agreement.
While great effort is made to ensure the accuracy of the information on this site, errors can occur. Please verify all pricing and installed equipment information with a customer service representative. This is easily done by calling us or visiting us at the dealership.
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