2.005 Administrative Service Fees (ASF) (VC §4456)

All California dealer or lessor-retailer retail vehicle sales are subject to the administrative service fee (ASF) law.

ASF cannot be passed on to the buyer by the dealer or lessor-retailer.

ASF are assessed for:

• Failure to submit:
  • The dealer notice portion of the report of sale document to DMV headquarters within five calendar days after, but not including the date of sale (VC §5901).
  • The application and fees due to DMV within 20 days of the date of sale for a new vehicle or within 30 days for a used vehicle.
• Failure to clear an application for registration of a:
  • New vehicle within 40 days of the date of sale or within 20 days of the date DMV first returned the application, whichever is later.
  • Used vehicle within 50 days of the date of sale or within 30 days of the date DMV first returned the application, whichever is later. Used vehicle includes nonresident vehicles.

If DMV holds an application for processing more for than five working days, one day is added to the 40 or 50 days for each day it is held over the five days.

California Certificate of Title Unavailable

To avoid ASF on an application that cannot be cleared because DMV is processing a prior transaction or the California Certificate of Title is otherwise unavailable, submit the incomplete application and fees due within 20 days (new vehicles) or 30 days (used vehicles) of the sale date.

ASF Exceptions

A dealer or lessor-retailer is not subject to any ASF, other than the 5-day notice requirements for:

• Vehicles sold to public agencies (the application may be given to the buyer).

• New vehicles to be altered before registration (the application may be given to the buyer).

• Vehicles sold for use exclusively on private property.

• Vehicles sold for registration out of state.

• Customer demands California Certificate of Title.

ASF Billings and Payments (VC §4456.1)

Vehicle dealers and lessor-retailers are billed on a monthly basis for outstanding ASF.

• Do not remit any ASF until an invoice is received from DMV headquarters.

• To ensure proper credit, always submit the invoice with your ASF payments to the ASF/ISF Unit in DMV headquarters at the address shown on the billing.