My brother is the service manager at an area Chrysler/dodge/jeep dealer. He has worked there for close to 20 years. I have bought A LOT of cars there, and i get 'real' employee pricing(the same price as my brother gets). I have bought at least 15-20 used cars as well as 5 new cars from them over the years. i STILL pay their full doc fee on every car i buy. I have *****ed about it and they answer is always the same"the owner will not waive it for anyone, including employees"(my brother pays it too). That said, it is not unreasonable, somewhere around $175, and that includes fees which have to be paid to the state,including a years registration and plate.
I would complain and ask for a reduction in the fee if it were $399 also. If they balk, ask them for a breakdown of what you are getting for the money you are paying. That is not an unreasonable request. Make them try to justify that fee from a business point of view.
I don't remember what i paid for the fee on my smart, but it must have been fair, otherwise i WOULD remember it..LOL