Legitimate dealer fees

<div class='quotetop'>QUOTE(newby @ Feb 13 2007, 04:24 PM) [snapback]389725[/snapback]</div>

I always try to negotiate away the advertising and doc fees, they seem bogus to me.

 

Lets go through them:

This is a fee assessed to the dealer by the manufacturer that covers the cost to get the car to them. This is standard and its built into the price of the car. I've very rarely seen a dealer waive this.

These are the grey areas. Dealers in my area don't even charge fees like this, but it is commonplace in other areas. I'd work on them for these, but its a negotiation point. They're not much, so if you get the deal you want or one that seems really strong, I wouldn't loose it over $550.

Well...these aren't dealer fees. The tag charge is a cost to the state, and the operative word for the last two is tax. Gotta pay sales tax when you buy stuff, cars oare no different. The dealer CAN'T waive these and they pass through to the state.

One word of advice. Don't buy a car somewhere soley because they have it $5 cheaper. If you buy from a good salesperson at a dealer you like, you'll reate a relationship that will have a lot of value for you during the lifetime of your vehicle. Figure out what seems fair in your marketplace, ask for fair, but don't begrudge the dealer or the salesperson a fair profit either if they seem legitimate and like they could be a good resource for you in the future.

 

<_< I'm with Steve on the "fees" such as "Local Advertising." All in all, it doesn't matter if you can negotiate the deal you want... just lines on the Purchase Agreement. So... "I'll pay your 'Local Advertising' fee if you will take another $800 off the purchase price..." --or-- "OK if you will give me $800 more for my trade..."

How they allocate the money once they get it only matters in such things as Sales Price. In Texas, we pay 6¼% of the purchase price -OR- the DIFFERENCE between the purchase price and the trade. Thinking that way, it would be better to allocate money for "Local Advertising" or other similar items.

 

<div class='quotetop'>QUOTE(newby @ Feb 13 2007, 04:24 PM) [snapback]389725[/snapback]</div>

The destination charge is a legitimate part of the price of the car. The advertising charge, doc fees, and $254 for tags are pure BS. In NJ it costs $20 at the MVC to transfer plates. Check their website or call them. There is a small tire tax (I don't remember exactly how much but $2 per tire sounds right.) and the sales tax collected for the state. If you can find a dealer in an Urban Enterprise Zone the tax is 3.5%. IMO if they insist on the fees insist on that much less for the car. Check out www.carbuyingtips.com and good luck.

 

Here in California, the "doc fees" are limited to something like $40. The dealers try to point to that law to say it means the state charges the fee, but its really the fee the dealer is charging to process the paperwork. I've tried to get them to waive it, but most dealers won't.

Is registering a new car in NJ really only $20.

http://www.state.nj.us/mvc/Vehicle/NewVehicle.htm says that the first 4 years must be paid, if I'm reading that page right, and then http://www.state.nj.us/mvc/Vehicle/Fees.htm shows $59 for the "basic fee" (if I'm reading the chart right). I'm not clear if that's a special program (its dated 2004) or if that's an on-going program. That's $236, which is pretty close to the figure from the dealer.

 

<div class='quotetop'>QUOTE(JimN @ Feb 13 2007, 09:23 PM) [snapback]389911[/snapback]</div>

Thats if you TRANSFER plates. $250 for new plates sounds about right.

 

I've been trying to get a handle on these fees myself. The main question I have is the $254 for plates. If all of that goes to the DMV, it's legit. Otherwise, it's a second doc fee.

The ad fee is somewhat legit, as it is a per car amount paid by the dealer.

The doc fee is negotiable, but it's much lower than some I've seen.

The destination charge should be on the invoice. Unlike the rest of the items on the window sticker, 100% of the destination charge is paid by the dealer as part of the invoice. There's no dealer margin in destination charges, which is one reason they keep going up and up for many makes.

 

Hi New poster and Prius owner here. It took me three days but I was able to get a package 2 for about $175 over invoice($22323). There were no other fees besides delivery, processing and handling fee of $620 on the sticker. Funny, I was under the impression that there was still a waiting period and dealer mark-ups on these cars. Has the demand dropped that much?
Anyway, happy to join the ranks of the enlightened. Cant wait to look around this forum some more B)

 

<div class='quotetop'>QUOTE(nuse1 @ Feb 14 2007, 05:20 PM) [snapback]390469[/snapback]</div>

Welcome to the site. It isn't that demand has dropped as reported January to January sales are up. Toyota dramatically increased production and is looking to sell twice as many Prii this year as compared to last year.