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View Full Version : What's a good price for dealer "fees"?


cmb396
01-16-2011, 11:36am
I'm negotiating a used car out of state, and they told me the "dealer fees" were $499. I thought that seemed a bit steep, what's the standard?

Datawiz
01-16-2011, 11:37am
Negotiate them to $0. :cheers:

repo
01-16-2011, 11:40am
I'm negotiating a used car out of state, and they told me the "dealer fees" were $499. I thought that seemed a bit steep, what's the standard?

Nothing. I bought my X5 out of State. Saleshole never mentioned them. We get to the final numbers via fax and I asked about dealer fee's. he said they are on every deal. I said why? He said to pay for the girl to go to DMV, etc. I said that was bullshit and her going to DMV should just be part of the deal.

He said sorry. I told him to keep the car. They then gave me 500 more on trade. I think its probly money that goes right to the owner.

DAB
01-16-2011, 11:43am
whatever they can get out of you. the only standard is that they want to make a profit on every sale...

BADRACR1
01-16-2011, 12:51pm
Most charge $199 to whatever they can get. It is to "allegedley" cover the time spent on paperwork, getting tags, and whatever else they want to include under that heading. It's basically a way to make a little extra and increase profit using these services as an excuse. They have to do these things anyway to sell the car and have people there to do these jobs. Try negotiating them down or balk at the sale and they may even dismiss them alltogether. End of the month is the best time for negotiations. Most will be trying to meet thier sales quota.
I've worked at a Nissan and Chrysler dealership. My brothers' been at an Acura and currently at a Kia store. It's pretty much the same at all of them.

lander
01-16-2011, 4:36pm
Tell them you charge $499 to pick up your new vehicle.

Uncle Pervey
01-16-2011, 5:17pm
$500 is a fecking rippoff, total fees shouldn't be over $200.

snide
01-16-2011, 5:37pm
$500 is a fecking rippoff, total fees shouldn't be over $200.

$200 is a ripoff. Fees shouldn't be any more than $0.00

Rapid Roger
01-16-2011, 5:41pm
Whenever I have bought a new car and the "Fees" came up,usually after the deal is set...I just said no........:)

GRN ENVY
01-16-2011, 6:00pm
Dealer fees are BS, its extra money to the dealer. I have never payed a dealer fee in my life and never will. Its like going to a stake house and ordering their nicest steak on the menu and when getting the check the steak is 20 bucks and there is a cooking fee of 10 bucks, its just plain stupid.

themonk
01-16-2011, 6:02pm
Our admin fee is $249 and etch fee (anti-theft) is $149, combined it's one of the lowest in the city.

Rapid Roger
01-16-2011, 6:19pm
Our admin fee is $249 and etch fee (anti-theft) is $149, combined it's one of the lowest in the city.

Ah yes...The "Etch" fee....The biggest ripoff since "Get a second one free,just pay shipping and handling costs"....:)

snide
01-16-2011, 6:25pm
Ah yes...The "Etch" fee....The biggest ripoff since "Get a second one free,just pay shipping and handling costs"....:)

Let's not forget the $395 for pinstriping... :rolleyes:

Skia
01-16-2011, 6:29pm
Our Admin/ Doc fee is 489.00 and if you won't pay it then tough shit. People don't try and negotiate lawyer and Doctor fee's. If you don't like it go buy elsewhere.

MrPeabody
01-16-2011, 6:32pm
Our Admin/ Doc fee is 489.00 and if you won't pay it then tough shit. People don't try and negotiate lawyer and Doctor fee's. If you don't like it go buy elsewhere.

People negotiate doctor and lawyer fees all the time.

lander
01-16-2011, 6:43pm
Our Admin/ Doc fee is 489.00 and if you won't pay it then tough shit. People don't try and negotiate lawyer and Doctor fee's. If you don't like it go buy elsewhere.

I negotiate with my doctor every time I go...so you lose that argument.

But that aside, I agree, and I do go elsewhere. I give an OTD price, they either agree to it or they don't. If they have fee's in the OTD price, that's their business, I don't care how they decide to assign their profit on the paperwork, but OTD is what I'm willing to pay for the vehicle.

I have a couple friends that sell cars that I go to buy from repeatedly. They've flat out told me it's a scam, so whatever.

Rapid Roger
01-16-2011, 7:07pm
Let's not forget the $395 for pinstriping... :rolleyes:

Yeah...And they don't even get a pro striper to do it....They use the tape that comes off in a year or so......:)

BADRACR1
01-16-2011, 9:35pm
$200 is a ripoff. Fees shouldn't be any more than $0.00

$5.00 for gas, employees are being paid for their time amyway.

DJ_Critterus
01-16-2011, 9:36pm
Negotiate them to $0. :cheers:

I won't pay dealer fees and here in TX it's stated on the forms that you don't have to pay them. I make them negotiate it out of the price. To me, a dealer fee is the profit they make.

NB2K
01-16-2011, 9:41pm
I paid $112 on the last new truck I bought 2 months ago. The guy was already low so WTH.


$500 is ridiculous.

cmb396
01-16-2011, 9:41pm
Also forgot to mention, they want me to pay their states sales tax on the car, then have the money transferred to my state, which is less, and then I will be reimbursed the difference!! I told the guy I didn't know about that one??

This all transpired very late on Saturday afternoon before they closed. This was on a car they had a contract on but fell thru, and I was on hold to be the next buyer.

The sales mngr is suppose to call me in the morning, and hopefully we can get things worked out. The 499 fee, and the sales tax thing is BS imo tho.

NB2K
01-16-2011, 9:44pm
Also forgot to mention, they want me to pay their states sales tax on the car, then have the money transferred to my state, which is less, and then I will be reimbursed the difference!! I told the guy I didn't know about that one??

This all transpired very late on Saturday afternoon before they closed. This was on a car they had a contract on but fell thru, and I was on hold to be the next buyer.

The sales mngr is suppose to call me in the morning, and hopefully we can get things worked out. The 499 fee, and the sales tax thing is BS imo tho.

It is BS. They think you are a sucker.

Pass.

ZipZap
01-16-2011, 9:44pm
Dealer fees are BS, its extra money to the dealer. I have never payed a dealer fee in my life and never will. Its like going to a stake house and ordering their nicest steak on the menu and when getting the check the steak is 20 bucks and there is a cooking fee of 10 bucks, its just plain stupid.

Where can you get the nicest stake for $20?

NB2K
01-16-2011, 9:45pm
Where can you get the nicest stake for $20?

You make fun, but iffen a vampire shows up you'll be glad you have it.

Y2Kvert4me
01-16-2011, 9:48pm
Also forgot to mention, they want me to pay their states sales tax on the car, then have the money transferred to my state, which is less, and then I will be reimbursed the difference!! I told the guy I didn't know about that one??
VERY shady! :eek:

They should collect sales tax, yes, but at YOUR states tax rate. Then hand you a receipt showing correct tax paid so you won't have to pay anything when registering it in your state.

:cheers:

MattW
01-16-2011, 9:50pm
Admin fees are part of the overhead of running the business. The idea you can stick it onto the price of the vehicle as a separate line item, is a ridiculous idea and I have never paid it as such.

GRN ENVY
01-16-2011, 9:50pm
Where can you get the nicest stake for $20?

I don't know, it was just a number I used for the example

DJ_Critterus
01-16-2011, 9:51pm
VERY shady! :eek:

They should collect sales tax, yes, but at YOUR states tax rate. Then hand you a receipt showing correct tax paid so you won't have to pay anything when registering it in your state.

:cheers:

QFT... sounds like this guy needs to go find another car to buy from another dealer. Also, make sure to tell the current dealer why you are walking and do it in front of other customers. Shady dealerships piss me off to no end.

cmb396
01-16-2011, 9:52pm
It is BS. They think you are a sucker.

Pass.

Seriously!! I'd hate to pass b/c I have had such a hard time finding a car like this, everything is right about this car.
I will know more in the morning after I speak with the mngr, but I'm not paying out of state sales tax, I know how that would turn out!!
I'd happily pay the fee, as long as they come off the sales price 500 bucks, I'd call that even!!

NB2K
01-16-2011, 9:52pm
VERY shady! :eek:

They should collect sales tax, yes, but at YOUR states tax rate. Then hand you a receipt showing correct tax paid so you won't have to pay anything when registering it in your state.

:cheers:

I disagree.

He can pay sales tax when he applies for title in his sate.

Relying on an out of state dealer to remit sales tax to your state is a bad plan.

NB2K
01-16-2011, 9:54pm
Seriously!! I'd hate to pass b/c I have had such a hard time finding a car like this, everything is right about this car.
I will know more in the morning after I speak with the mngr, but I'm not paying out of state sales tax, I know how that would turn out!!
I'd happily pay the fee, as long as they come off the sales price 500 bucks, I'd call that even!!

Then it's all good.

Do Not Tell Them What You Told Me. re: how perfect the car is...


Tell them, "y'all are working me pretty good and I'm about to walk...."

repo
01-16-2011, 9:55pm
Seriously!! I'd hate to pass b/c I have had such a hard time finding a car like this, everything is right about this car.
!

You're screwed.:above:

cmb396
01-16-2011, 9:56pm
I disagree.

He can pay sales tax when he applies for title in his sate.

Relying on an out of state dealer to remit sales tax to your state is a bad plan.

Kinda what I thought. I told the guy on the phone yesterday, I could see me getting stuck paying 2x sales tax when I tried to the car registered in my state.

NB2K
01-16-2011, 9:56pm
You're screwed.:above:

It may be too late, huh...:lol:

Y2Kvert4me
01-16-2011, 9:57pm
I disagree.

He can pay sales tax when he applies for title in his sate.

Relying on an out of state dealer to remit sales tax to your state is a bad plan.A licensed dealer will collect sales tax on out-of-state purchases. :yesnod:

No one should give a shit if that money ever gets transferred, you won't be double-taxed if you have the piece of paper that notes sales tax was collected when you go to register the car.

:cheers:

cmb396
01-16-2011, 9:58pm
Meh, it won't be the end of the world if it doesn't work out. There's others out there, I just get impatient when I want something.

NB2K
01-16-2011, 9:58pm
Kinda what I thought. I told the guy on the phone yesterday, I could see me getting stuck paying 2x sales tax when I tried to the car registered in my state.

And it will happen, for sure.

Your state could care less about what receipt you show, dey wants dey monies...

And there is no reason the dealer should collect out of state sales tax.

NB2K
01-16-2011, 10:02pm
A licensed dealer will collect sales tax on out-of-state purchases. :yesnod:

No one should give a shit if that money ever gets transferred, you won't be double-taxed if you have the piece of paper that notes sales tax was collected when you go to register the car.

:cheers:

I've bought out of state several times. I don't argue they can collect out of state taxes, but it's a PITA.

I don't pay sales tax on a car/boat/RV I buy out of state.

Y2Kvert4me
01-16-2011, 10:12pm
I've bought out of state several times. I don't argue they can collect out of state taxes, but it's a PITA.

I don't pay sales tax on a car/boat/RV I buy out of state.From a private seller? No. You'll pay the tax at registration.

From a Licensed dealer? Yes, they have to collect it in order to issue a temp tag. If they didn't, you'll still pay at registration in your home state, no big deal.


Either way is not a PITA, but my original point was to NOT pay more tax than you would be buying a vehicle in your home state.


:cheers:

NB2K
01-16-2011, 10:24pm
From a private seller? No. You'll pay the tax at registration.

From a Licensed dealer? Yes, they have to collect it in order to issue a temp tag. If they didn't, you'll still pay at registration in your home state, no big deal.


Either way is not a PITA, but my original point was to NOT pay more tax than you would be buying a vehicle in your home state.


:cheers:

I agree, if he pays it, make sure it's the right rate. Is it a law they have to collect it?

I bought a new F150 in Houston, didn't pay sales tax, paid it when I registered the truck in LA.
They bitched, but they did it.

On a deal I did before that I had a bad experience and I vowed to not go thru the headache again. I wasn't trying to get out of paying it; that won't work.

One thing's for sure, the state will collect from somebody.

polarbear
01-16-2011, 11:20pm
Admin fees are part of the overhead of running the business. The idea you can stick it onto the price of the vehicle as a separate line item, is a ridiculous idea and I have never paid it as such.

The car biz is the only biz I'm aware of that can take a profit item and account for it as a cost of sale. :yesnod:

Our admin fee was $75, and same deal- pay it or get out. There actually was a reason for that. Back when dealer's started charging Admin Fees, the Oregon AG stepped in and said something to the effect of "fine, charge if you feel you have to. But you damned well better charge everyone the same amount, or expect to be party to a class action suit." The logic was, from the AG's perspective, that a non-negotiable fee tends to be smaller, and there's less chance of consumer rip-off's.

That being said, in Oregon we couldn't charge the fee to consumers that transferred their own titles or to out-of-state customers. Title had to be transferred in state by the dealer, or the admin fee couldn't be charged to the consumer. Dealer's are subject to random spot audits by the state, and fines for non-compliance are steep.

Gozar
01-17-2011, 12:19am
DMV is all electronic these days. Only the cheesiest of dealers have to send someone down to the actual office.

Fees are a profit line item. Plain and simple. Pay them or don't but some dealers hold the line hard on them.

Personally, anything under $100 I don't argue over.

NB2K
01-17-2011, 10:19am
Had a case a few years ago here in LA where dealers were charging an "ad valorem" fee and calling it a "tax". I paid it on 1991 Thunderbird SC because I didn't know any better.

They eventually got sued. Guess how much money we all got back?:lol:

I always tell 'em to give me an OTD price excluding sales tax.

lander
01-17-2011, 10:22am
The car biz is the only biz I'm aware of that can take a profit item and account for it as a cost of sale. :yesnod:

Our admin fee was $75, and same deal- pay it or get out. There actually was a reason for that. Back when dealer's started charging Admin Fees, the Oregon AG stepped in and said something to the effect of "fine, charge if you feel you have to. But you damned well better charge everyone the same amount, or expect to be party to a class action suit." The logic was, from the AG's perspective, that a non-negotiable fee tends to be smaller, and there's less chance of consumer rip-off's.



Same in SC, the fee is going to be on the paperwork because they have to charge everyone the same thing. That's why I only work on OTD pricing...don't care how they settle up with themselves.

C5SilverBullet
01-17-2011, 10:23am
Texas Doc fees are maxed at $125. That being said, I wouldn't pay 1 f**king dime of that.

NB2K
01-17-2011, 10:34am
Texas Doc fees are maxed at $125. That being said, I wouldn't pay 1 f**king dime of that.

Bullet, do y'all collect taxes on an out of stater?
Cash deal.

C5SilverBullet
01-17-2011, 10:39am
Bullet, do y'all collect taxes on an out of stater?
Cash deal.

The only thing we collect is Texas Vehicle Inventory Tax, which is 0.2077%.

That is on a cash deal, if we finance for the customer, the law states we also must collect sales tax.

NB2K
01-17-2011, 11:53am
The only thing we collect is Texas Vehicle Inventory Tax, which is 0.2077%.

That is on a cash deal, if we finance for the customer, the law states we also must collect sales tax.

OK, thanks.

When bought I the truck in Houston in 2005 that must've been why I didn't have to pay sales tax.

I told'em 3 things before I came over: I'm not paying sales tax, don't put your dealership sticker on it, and don't put glossy crap on the sidewalls.

What do you think happened when I got there?:lol:

Truck Guy
01-17-2011, 11:54am
Texas Doc fees are maxed at $125. That being said, I wouldn't pay 1 f**king dime of that.$179.95 here in Illinoiz, and I agree, wouldn't pay one cent of it. I'd walk... :yesnod:

81.
01-17-2011, 1:46pm
looking at a cycle on ebay. 79 doc fee and 580 "destination fee"

themonk
01-17-2011, 1:52pm
Ah yes...The "Etch" fee....The biggest ripoff since "Get a second one free,just pay shipping and handling costs"....:)

Exactly.

cmb396
01-17-2011, 8:25pm
Dude never called me back today, eff em!! They also raised the autotrader ad price 3k Saturday evening!!:lol:

The salesmen even told me, if I don't buy this car they were going to reprice it.

NB2K
01-17-2011, 8:54pm
Dude never called me back today, eff em!! They also raised the autotrader ad price 3k Saturday evening!!:lol:

The salesmen even told me, if I don't buy this car they were going to reprice it.

Ehh...you'll find another.:cheers: