Dealer add-ons and junk fees
Dealer add-ons are products and services that the dealer, not the manufacturer, charges you for: paint and fabric protection, nitrogen tire fills, VIN etching, window tint, wheel and key plans, plus price increases called market adjustments. Nearly all of them are optional.
Spot the add-ons on a quote
Nearly all dealer add-ons are optional. Ask for the price without each one.
- 1Paint, fabric and ceramic protectionDealer-applied coatings, films and sealants. No charge is allowed for one that voids the paint warranty.
- 2Nitrogen-filled tiresOrdinary air is already mostly nitrogen. No charge is allowed for products below 95 percent purity.
- 3VIN etching and theft deterrentsEtched windows, alarms and tracking devices. Ask your insurer whether any earns a discount before paying.
- 4Market adjustment or additional dealer markupNot a product, just a higher price. It's negotiable.
- 5Dealer prep, dealer fees and admin feesThe dealer's own charge. The destination charge is already on the window sticker.
- 6Document processing chargeCalifornia caps it, and it can't be presented as a government fee.
Key takeaways
From October 1, 2026, California's CARS Act requires dealers to tell you in writing that an add-on isn't required and bans charging for add-ons you wouldn't benefit from. On a lease, a capitalized add-on is paid off in full during the term, with rent charge and tax on top.
What counts as a dealer add-on
California's CARS Act defines an add-on as any product or service not provided or installed by the manufacturer that a dealer charges for, directly or indirectly, in a sale, lease or financing deal (Civil Code 1784.31). Add-ons turn up installed on the car and listed on a dealer addendum sticker beside the window sticker, added to the worksheet by the salesperson, or offered in the finance office as protection plans. On a lease they land in the gross capitalized cost, which California lease contracts must itemize (Civil Code 2985.8).
Common dealer add-ons and what to know about each
Paint, fabric and ceramic protection: dealer-applied coatings, films and sealants. From October 1, 2026, a dealer can't charge for a surface protection product that voids the manufacturer's paint warranty.
Nitrogen-filled tires: ordinary air is already mostly nitrogen. From October 1, 2026, California dealers can't charge for nitrogen tire products below 95 percent purity.
VIN etching and theft deterrents: etched windows, alarms and tracking devices. Ask your insurer whether any of them earns a discount before paying. The CARS Act also bans charging for catalytic converter markings on a car that has no catalytic converter, such as a fully electric car.
Window tint: in California, film on the front side windows is limited to clear UV-blocking film or a medical exemption. Tinted film is allowed on side windows behind the driver, and on the rear window when the car has outside mirrors on both sides (Vehicle Code 26708).
Wheel and tire protection: pays for road-hazard damage. Compare its price with what your lessor charges for damaged wheels and tires at turn-in.
Key replacement: covers lost or damaged smart keys. A missing key can be a turn-in charge, so price a replacement key before you decide.
Dent, ding and windshield plans: repair small damage during the lease. They're useful only if their coverage matches your lessor's wear standards; see excess wear and tear.
Service contracts and maintenance plans: the FTC advises comparing a service contract with the factory warranty first. On a lease, coverage that starts after the warranty ends matters only if you plan to buy the car. From October 1, 2026, a California dealer can't charge for oil changes on an electric car.
GAP: many leases already include a gap waiver. See GAP and insurance on a car lease.
Market adjustment or additional dealer markup: not a product, just a higher price. It's negotiable, and a dealer's supplemental price sticker must show the MSRP, price each added item and label any extra as "added mark-up" (Vehicle Code 11713.1).
Dealer prep, "dealer fees" and admin fees: the destination charge is already on the window sticker, which federal law requires. A separate prep or admin fee is the dealer's own charge. California caps the document processing charge, and neither it nor the electronic filing charge may be presented as a government fee (Vehicle Code 4456.5). See lease fees explained.
How dealer add-ons raise a lease payment
When an add-on is capitalized into a lease, the residual value doesn't go up, so you pay the add-on's full price as depreciation over the term, plus rent charge on it and California tax on each payment. On a purchase, an add-on is taxed with the car; the out-the-door price calculator shows what it adds to the total.
Example with made-up numbers: a $2,000 protection package on a 36-month lease with a money factor of 0.0025 adds about $55.56 a month in depreciation and $5 in rent charge, about $60.56 a month before tax. Over the lease that's about $2,180 plus tax, for a product whose benefit mostly ends when you return the car.
What an add-on does to a lease payment
On a lease, you pay off the whole add-on. Plus rent charge and tax.
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Made-up numbers: a $2,000 protection package on a 36-month lease with a money factor of 0.0025. Its benefit mostly ends when you return the car.
California's CARS Act (SB 766): what changes on October 1, 2026
SB 766, the California Combating Auto Retail Scams (CARS) Act, was approved by the Governor on October 6, 2025 (Chapter 354, Statutes of 2025) and becomes operative on October 1, 2026 (Civil Code 1784.28). It applies to licensed California dealers and aims to protect people who buy or lease new and used vehicles. On add-ons, the statute says:
No charging for add-ons you wouldn't benefit from. The law lists examples: nitrogen tire products below 95 percent purity, products that provide no coverage for the vehicle, the consumer or the transaction, GAP agreements that don't comply with California's GAP rules, service contracts that are void because of preexisting damage or conditions, oil changes for electric vehicles, catalytic converter markings on vehicles without one, and surface protection that voids the paint warranty (Civil Code 1784.42).
Add-ons must be called optional in writing. If a dealer makes any written statement about an add-on while you negotiate a specific car, it must disclose at least once, clearly and in writing, that the add-on isn't required and that you can buy or lease the car without it. When the deal is negotiated mainly in Spanish, Chinese, Tagalog, Vietnamese or Korean, that disclosure must also be given in that language (Civil Code 1784.41).
No misrepresenting add-ons. Misrepresenting any cost, limitation or benefit of an add-on is a violation (Civil Code 1784.40).
Advertised prices must include installed extras. For sales and financing, a car's advertised total price must include any dealer price adjustment and anything installed on it, excluding taxes, government fees and a few permitted charges such as the document processing fee (Civil Code 1784.31 and 1784.41).
Payment quotes must show the total. A monthly payment quoted in writing during negotiation must come with the total you'd pay at that payment (Civil Code 1784.41).
Dealers must pay the provider. The dealer has to pay whoever provides the add-on within 10 days of signing, unless an agreement allows later payment without affecting your coverage (Civil Code 1784.42).
Records and waivers. Dealers must keep records, including add-on paperwork and customer complaints, for two years (Civil Code 1784.44), and you can't waive these protections (Civil Code 1784.21).
The statute doesn't ban add-ons you choose and would benefit from, even if you never end up using them (Civil Code 1784.42).
The FTC's position on dealer add-ons
The Federal Trade Commission published its own CARS Rule in January 2024, which would have banned add-ons that give no benefit and required express, informed consent for charges. The Fifth Circuit vacated it on January 27, 2025 because the FTC skipped a required rulemaking step, and the FTC formally withdrew it effective February 12, 2026. The FTC still acts against deceptive pricing under the FTC Act: on March 13, 2026 it warned 97 dealership groups that advertised prices must include all mandatory fees and that dealers can't require buyers to purchase items not reflected in the advertised price. Its consumer advice is to ask for the price of each add-on, say no to what you don't want and check the final contract for charges you didn't agree to.
How to handle dealer add-ons at the dealership
To spot add-ons and extra fees in a quote you already have, paste it into Check my quote. Then:
Ask for the dealer addendum and an itemized worksheet before you visit.
Ask which items are optional, and for the price of the car without each one, in writing.
If an item is already installed and the dealer won't drop the charge, negotiate the price down or ask for a car without it.
Before you sign, read the itemization of gross capitalized cost line by line, and never sign a contract with blank spaces; California lease contracts carry that warning above the signature line.
If something slipped in, contact the provider about cancelling it. The CFPB notes that you can cancel optional add-on products.
If a dealer won't correct a charge it said was required, you can complain to the DMV Investigations Division, which enforces the rules for dealers and brokers, or report it to the FTC at ReportFraud.ftc.gov.
For the rest of the negotiation, see how to negotiate a car lease.
How 021 helps
Most cars we deliver come without dealer add-ons, and anything a dealer wants to include has to appear on your written quote before you agree to anything.
With 021 you get one written quote before you agree to anything: payment, drive-off, term, miles, taxes, fees and 021's fee. Nothing hidden. If you have a dealer quote full of extras, send us the complete quote and we'll beat it or tell you it's already a good deal.
CARS Act, from October 1, 2026
Can a California dealer charge for it?
Nitrogen tire products below 95 percent purity.
Also catalytic converter markings on a car that has no catalytic converter.
A surface protection product that voids the manufacturer's paint warranty.
Products that provide no coverage for the vehicle, the consumer or the transaction.
Service contracts that are void because of preexisting damage or conditions.
The statute doesn't ban add-ons you choose and would benefit from, even if you never end up using them.
The dealer must also tell you in writing, at least once, that an add-on isn't required and that you can buy or lease the car without it.
Common questions
Are dealer add-ons mandatory?
What dealer fees should you not pay?
What is a market adjustment on a car?
Is nitrogen in tires worth paying for?
When does California's CARS Act take effect?
Can I remove an add-on after I sign?
021 Auto Leasing is a licensed California autobroker (license #82402). All new cars arranged for sale are subject to price and availability from the selling franchised new car dealer.