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The admin fee is in essence their profit fee. Some states require it by law such as Florida being something like 3%.
Often times if the dealer is actually charging for registering your car plates then that fee is supposed to be part of that admin/documentation fee. This is however a bloated charge as well because it will always be cheaper to register it yourself by a large margin and they should not be able to force you to pay them to do what you can do. They just strong arm most people to accept it.
Without knowledge of which states require this mandated profit, it can be overlooked by buyers in the process with price negotiations.
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