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A correction to my earlier post, it seems that "document fees" and "dealer prep fees" are slightly different. Maybe or maybe not, I am still confused.
What Fees Should You Pay? (http://www.edmunds.com/advice/buying/articles/117494/article.html - broken link)
My point still stands however, it's the out the door price that matters. If one didn't have a dealer prep fee then that fee would be built into the sales price of the car. We all know the real reason for these add-on charges - it's for the dealer to quote a person one cost, and then sneak the extra costs at the end when they are ready to sign. The solution, again, make sure you get a quote for ALL the fees, and you can still get a good price for a car even with the BS fees added, assuming you are doing the proper competitive shopping around.
All industries have BS fees. You see Admin fees all the time from body shops, salvage yards, insurance companies, etc. They usually charge $150. Basically, they are charging you because they are employed. Basically, they are stating we have to fee you because my position cost the company money and they need it back. Extremely stupid logic because its a part of business. However, auto related industry do it because they can and it is 100% profit even though they don't do much.
All industries have BS fees. You see Admin fees all the time from body shops, salvage yards, insurance companies, etc. They usually charge $150. Basically, they are charging you because they are employed. Basically, they are stating we have to fee you because my position cost the company money and they need it back. Extremely stupid logic because its a part of business. However, auto related industry do it because they can and it is 100% profit even though they don't do much.
That's what they said, everyone does it and there isn't a way for them to exclude it... but I don't know, it stinks... I think its all padding their pockets...
That's absolute bull****. Tell them to take it off or you walk.
They are already reimbursed by the manufacturer for prep work.
So they give me the total price but then with financing they list the DMV fees and the Sales tax... then there is a big whopping $500 "Processing Fee" and they explained it as "getting the car cleaned and ready, financing paperwork, etc"... for $500? Huh? Does that sound like a scam to anyone? It seems to me they are padding their pockets...
$500 is a scam. You should only be charged a doc fee which is around $150
wow things must be different down there... every dealer here has D&H its already on the paperwork and it cant be taken off.
Yes, it can. I just bought a car and the dealer tried to pull that on me. I had him remove it and I just payed the doc fee. 'Getmeoutofhere' is correct. They might not be willing to pull it off because you are usually late into the negotiations and dealers know you are not likely to fight them on $500. This is why you should never fall in love with a car to the point you can't walk away. This is why you should never limit your car buying to your immediate area. Use edmunds and shop nationally. There is always a dealer that works on low margins and high volume and will gladly eliminate those b.s. charges to get your business.
Yes, it can. I just bought a car and the dealer tried to pull that on me. I had him remove it and I just payed the doc fee. 'Getmeoutofhere' is correct. They might not be willing to pull it off because you are usually late into the negotiations and dealers know you are not likely to fight them on $500. This is why you should never fall in love with a car to the point you can't walk away. This is why you should never limit your car buying to your immediate area. Use edmunds and shop nationally. There is always a dealer that works on low margins and high volume and will gladly eliminate those b.s. charges to get your business.
They CAN subtract the dealer fee from the price, but they CANNOT take it out of the deal.
They CAN subtract the dealer fee from the price, but they CANNOT take it out of the deal.
BS
I've been buying cars in the Denver metro area since 1965, and have NEVER paid those Dealer add-on fees.
I don't care whether they had it pre-printed on their forms or not ... when presented with these line items, prep fees, doc fees, medicated coatings for the interior or exterior of the car, undercoating fees, windshield treatments, etc., ... after negotiating an "out the door" final price, before applicable taxes ... I've always caught it and lined it out, and gotten the dealer to agree to drop the fee or we didn't have a deal. It's the price of the car, inland transportation if applicable, and that's it.
Money talks, and if you're capable, qualified, knowledgeable ... you can make deals on merchandise that a dealer needs to move or get off a floor plan or meet a quota .... obviously, if they've got a hot seller at a premium due to market demand, you'll not make a deal on that item, but if you're more realistic about the car you want to buy and not in love, you can always find a dealer willing to do a low margin deal on excess inventory. It just might not be your local dealer, so you'll have to do some searching and negotiating to find who has what you want at a realistic price ....
Last edited by sunsprit; 03-31-2010 at 04:30 PM..
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