A new bill passed by the California Senate — Senate Bill 791 — will allow car dealerships to charge buyers an additional fee that could add hundreds of dollars to the total cost of a vehicle. Currently, California law caps dealership processing fees at $85. If this new law is finalized, that fee could rise to 1% of the car’s purchase price, or up to $500.
For Californians already struggling with the high cost of living, this change could hit hard.
California Drivers Already Pay Among the Highest Costs
Buying a car in California is already expensive. Drivers must pay a 7.25% state sales tax, documentation fees, DMV registration costs (which can reach $500), and more. Car insurance isn’t cheap either. According to MarketWatch, the average annual premium for full coverage in California is $2,967 — one of the highest in the nation.
Fuel prices are also a major concern. As of the latest report from AAA, the average price for regular gasoline in California is $4.65 per gallon, the highest in the United States.
These expenses add up quickly. Many Californians are asking: Why is the state making car ownership even more expensive?
Politics, Lobbyists, and the Push for Senate Bill 791
The passage of Senate Bill 791 wasn’t without controversy. The bill passed with overwhelming support, with only one senator voting against it. That result raised eyebrows, especially since many lawmakers have publicly committed to easing financial pressure on California residents.
According to a lobbyist for the California New Car Dealers Association, other industries already charge similar service fees — and auto dealers simply want the same rights. But some critics argue there’s more at play.
Public records reviewed by CalMatters reveal that the New Car Dealers Association has donated nearly $3 million to state legislators over the past decade. While there’s no direct evidence that these donations influenced the vote, the timing raises questions. At the very least, the optics have shaken public trust.
California’s Car Culture Is at Odds With Its Car Costs
California has long been a central figure in American car culture. The state’s Mediterranean climate makes it ideal for year-round driving, especially for convertibles. Coastal temperatures often range from 70 to 80 degrees Fahrenheit, and the state is home to some of the most famous driving routes in the country — including Pacific Coast Highway and Silverado Trail.
The Golden State also gave rise to hot rod culture, lowriders, and car cruising. In the early 20th century, California was at the forefront of lifestyle trends like drive-in restaurants and carhop service, changing the way Americans lived and traveled.
But these days, car lovers are facing growing restrictions. California’s strict emissions regulations are far more aggressive than in other states. These rules are meant to protect the environment, but they also make it harder — and costlier — to own older or modified vehicles. Even celebrities like Jay Leno have voiced concerns, urging lawmakers to reconsider the state’s approach to smog laws.
Driving in California: A Dream Turning into a Burden?
California should be a dream for drivers. It offers beautiful weather, world-famous roads, and deep cultural ties to the automobile. Yet, many drivers today are stuck in traffic jams, paying record-high fuel prices, and facing growing regulatory and financial pressures just to own a car.
Instead of encouraging car culture, critics argue that lawmakers are slowly pricing people out of it.
As Senate Bill 791 heads toward full implementation, residents are watching closely — and wondering whether this is just the beginning of more fees to come.
