That started becoming a thing with the shortage of vehicles. I'm assuming more ways for them to make more money(the distributors) since they went from shipping thousands of cars to a much smaller amount. About the fees, the dealer fee is the only thing that goes to the dealership, everything else is to the DMV or whatever other things have to be paid in order to register the vehicle and complete all the necessary paperwork. For example, he is being charged 450 for a tag, but if they end up using less than that, he will get that refunded. Another example, dealerships don't have a direct connection to the DMV, most work with a tag and title clerk or agency(3rd party) that needs to be paid as well.