A Dealer Prep Fee or Pre-Delivery Inspection (PDI) Fee is a junk fee ranging from $495-$1,200 that you should never pay. The manufacturer already pays the dealer for PDI through the Destination Charge. Charging you for this service is double-billing for work they've already been compensated to perform.
Verdict: Junk Fee
$495 - $1,200
Why This Fee is Double-Billing
Every new car gets a Pre-Delivery Inspection—removing shipping blocks, checking fluids, testing electronics. The manufacturer reimburses the dealer $200-$300 for this through the Destination Charge. Charging you $995 on top is charging twice for the same work.
How to Decline
"I see a $995 charge for 'Dealer Prep.' I'm aware that the manufacturer reimburses your service department for PDI as part of your franchise agreement. Charging me for work you've already been paid for is double-billing. Please remove this fee."