A processing fee can only be charged if what condition is met?

Charging a processing fee is permissible when the dealer processes the customer's title and registration. This scenario signifies that the dealer is performing an actual service that justifies the fee. When the title and registration are handled by the dealership, they incur costs associated with processing these documents, and thus it becomes reasonable to recoup these costs through a processing fee.

In essence, the legitimacy of the fee hinges on it being tied directly to a service rendered. If the dealer is not involved in processing the title and registration, then charging a processing fee would lack justification, as there would be no clear service that the buyer is paying for. Therefore, being engaged in the processing of the customer’s title and registration is essential for the fee to be considered appropriate under Virginia state regulations.