CT Dealer Conveyance Fee: Disclosure, Amounts, and Negotiation

A CT dealer conveyance fee is an administrative charge a Connecticut dealership adds to a vehicle sale to cover paperwork, title processing, and registration work. Connecticut law does not cap the amount, but it does require the dealer to disclose the fee upfront, tell you in writing that it is negotiable, and let you handle some of the DMV paperwork yourself for a proportional reduction. Knowing what the statute requires is what puts you in a position to push back.

What the Fee Actually Pays For

Connecticut law defines the conveyance fee as a charge to recover reasonable costs for processing documentation and performing services related to closing a sale, including registration and transfer of ownership.¹ That covers preparing the bill of sale, running your title and registration through the DMV, verifying that liens are cleared, and storing the transaction records. The fee bundles those back-office costs into one line on your paperwork. It is not a government charge, and none of it goes to the state.

What the Dealer Has To Disclose

Connecticut General Statutes § 14-62 sets specific disclosure rules. They are legal requirements, not sales-floor courtesies.

Itemized on the Order and Invoice

Every sale must be documented with a signed order and a delivery invoice. The conveyance fee has to appear as a separate line item on both, printed in at least ten-point bold type, with a statement that the fee is not payable to the state of Connecticut.¹ That last line matters. It tells you the money is going to the dealership.

Built Into the Quoted Price

When a dealer quotes you a selling price, the conveyance fee has to already be included as a separately stated amount inside that quote. A dealer cannot quote one number and then add the fee when you sit down to sign.¹ If the fee shows up for the first time at the contract stage, the dealer has broken the rule.

Posted Sign and Written Statement

Dealers must prominently display a sign in the area where sales are negotiated and give you a written statement. Both have to include the fee amount, the services it covers, the fact that the fee is negotiable, the fact that it is not payable to the state of Connecticut, and your option to do the registration and title transfer paperwork yourself through the DMV in exchange for a proportional reduction in the fee.¹ The Commissioner of Motor Vehicles sets the sign’s size and layout. If that sign isn’t up near the sales desks, the dealer isn’t following the law.

Negotiating the Fee

This is where most buyers give up money. Connecticut law doesn’t just permit you to negotiate the conveyance fee, it requires dealers to tell you that you can. The word “negotiable” has to appear on the price quote, the posted sign, and the written statement.¹

Salespeople often say the fee is fixed by company policy. That may be their internal rule. It isn’t the statute. Whether a given dealer actually moves is a separate question, but you should ask, and you should know the law backs you when you do.

Doing Your Own DMV Paperwork

The statute gives you a second lever: you can elect to handle the DMV registration and title transfer paperwork yourself, and the dealer has to reduce the conveyance fee by a proportional amount reflecting the work you’ve taken off their plate.¹ Few buyers know this exists, and dealers don’t tend to bring it up, but it’s printed on the mandatory sign for a reason. It may not fit every situation, for instance where a lender requires the dealer to handle registration, but for a straightforward cash or pre-approved purchase, it’s a legitimate way to lower the bill.

Typical Fee Amounts

Because Connecticut sets no cap, amounts vary widely between dealerships. A 2016 study by the legislature’s Program Review and Investigations Committee found that new-car dealers charged an average of $405, with fees ranging from $0 to $699. Used-car dealers averaged $131, ranging up to $695.² Those figures have almost certainly climbed since. Franchise new-car dealers tend to charge substantially more than used-car lots even though the underlying paperwork is essentially the same, which tells you how much of the fee reflects overhead and margin rather than processing costs. When you compare vehicles across dealerships, compare the total out-the-door price, not the sticker.

Sales Tax Applies

Because the conveyance fee is a dealer charge rather than a government fee, it’s generally part of the taxable purchase price. Connecticut applies a 6.35% sales tax to vehicle purchases, or 7.75% for vehicles priced above $50,000.³ A $500 conveyance fee adds roughly $32 to $39 in sales tax depending on the total price. That’s another reason to negotiate the fee down: every dollar off also trims the tax.

Federal Rules on Advertised Prices

The FTC has taken a harder line on how dealers advertise vehicle prices nationwide. In March 2026 the agency sent warning letters to 97 auto dealership groups, stating that advertised prices must include all mandatory fees, including dealer-imposed charges like conveyance fees.⁴ The FTC enforces this under Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices in commerce.⁵

So if a Connecticut dealer advertises a vehicle at $30,000 online but the real price with the conveyance fee is $30,500, that ad may violate federal law. Government charges like taxes, title fees, and registration can still be excluded from the advertised price. Dealer-retained fees cannot. If an advertised price jumps once “processing” or “conveyance” charges are added, that’s worth questioning and worth reporting.

If a Dealer Breaks the Rules

If a dealer fails to disclose the fee, surprises you with it at signing, or refuses to acknowledge that it’s negotiable, you can file a complaint with the Connecticut DMV’s Consumer Complaint Center. Complete consumer complaint Form K-35, print two copies, sign both, and mail one to the DMV and one to the dealership. Include copies of the purchase order, invoice, and any advertising materials, and keep your originals.⁶ The Consumer Complaint Center’s number is 860-263-5405, and the mailing address is Department of Motor Vehicles, Consumer Complaint Center, 60 State Street, Wethersfield, CT 06161. Billing and purchase-order disputes fall within the complaint process, which covers conveyance fee issues.

1
Connecticut General Assembly. Chapter 246 – Motor Vehicles
2
Connecticut General Assembly. Car Dealer Document Fee Caps
3
Connecticut Department of Motor Vehicles. Learn About Sales Tax on First Time Vehicle Registrations
4
Federal Trade Commission. FTC Warns 97 Auto Dealership Groups About Deceptive Pricing
5
Office of the Law Revision Counsel. 15 USC 45 – Unfair Methods of Competition Unlawful; Prevention by Commission
6
Connecticut Department of Motor Vehicles. File a Dealer or Auto Repairer Complaint