Outrageous Dealer Add-Ons and Fees - When Will They Learn?

[Jdeere562]

I refuse to pay their "Doc fees"

Just tell them to sign the title over and I will handle the courthouse myself.

 

[mbres2000]

We recently test-drove a 2024 Nissan Pathfinder at a reputable dealership. It was a top of the line model with everything we wanted, but it had seven manufacturer options (six of them worthless in our opinion) that added $5,400(!) to the price. The most outrageous was a "lighting package" for $945 that included "welcome lighting" and "kickplate lighting". And then there was a roof rack cross bar option for $410. The dealer said that's the way Nissan sends them, which I believe.

But on top of that, there was another $2,000-something worth of dealer add-ons. They actually waived the price of the dealer add-ons, but had the audacity to show it as a discount from list! Bottom line was they wanted me to pay $52,600 + taxes, etc. for a vehicle with an base MSRP of $50,950.

We essentially "ran away, ran away" and ended up buying a comparably-equipped (and better handling) Kia Telluride. It has only two inexpensive manufacturer add-ons plus dealer-added ceramic window tint. The bonuses were a longer warranty and the Kia dealer being the closest to our home.

Have to say I'm glad Nissan ran us away with overpriced options, because the Telluride is a better vehicle in most respects. I can see why it has received so many accolades.

 

[mbres2000]

Gross

It’s adequate but nowhere near “real sports car powertrain” lol

I can certainly say that about the 2008 Odyssey we owned for five years. Its virtues were versatility, roominess, and front seat comfort. Downsides were wind noise (not leaks) and crappy brakes prone to warped rotors. Also, the cylinder deactivation was quite noticeable and annoying. Hopefully Honda has addressed those issue since them.

 

[StumblingElk]

It's ridiculous. I was looking at buying a new mustang GT and the dealer wanted nearly $3k for fees. Just like you, OP.

And they wouldn't budge. It's bad enough the lowest interest rates available are double what they were a couple years ago and the price of these cars has climbed so much to make it bonkers.

I got fed up and said screw it and decided to put $10k worth of go fast parts in the mustang I already own. Terrible financial investment but so is a $55k new car at 5% interest.

 

[StumblingElk]

We recently test-drove a 2024 Nissan Pathfinder at a reputable dealership. It was a top of the line model with everything we wanted, but it had seven manufacturer options (six of them worthless in our opinion) that added $5,400(!) to the price. The most outrageous was a "lighting package" for $945 that included "welcome lighting" and "kickplate lighting". And then there was a roof rack cross bar option for $410. The dealer said that's the way Nissan sends them, which I believe.

But on top of that, there was another $2,000-something worth of dealer add-ons. They actually waived the price of the dealer add-ons, but had the audacity to show it as a discount from list! Bottom line was they wanted me to pay $52,600 + taxes, etc. for a vehicle with an base MSRP of $50,950.

We essentially "ran away, ran away" and ended up buying a comparably-equipped (and better handling) Kia Telluride. It has only two inexpensive manufacturer add-ons plus dealer-added ceramic window tint. The bonuses were a longer warranty and the Kia dealer being the closest to our home.

Have to say I'm glad Nissan ran us away with overpriced options, because the Telluride is a better vehicle in most respects. I can see why it has received so many accolades.

Be cautious of their warranty.

We bought a new sportage last year and soon discovered a minor HVAC issue/annoyance.

Spoke with the Dealer and were told they were so backed up with work that it could be up to 2 months (or more possibly) for them to look at. Especially, since I couldn't magically replicate the issue on command.

They also couldn't lend us a car and have zero obligation to loan out a car. Kia corporate even told me that their dealers get to pick and choose if they will lend out a car and their warranty/repair schedule.

So.....no more Kia cars in our future. Lol screw that nonsense

 

[StumblingElk]

Have you looked at CPO as an option? Alot of dealerships even add extra warranty. Some are. Very lightly used with the initial deprecation out of the way.

This can definitely be a good option. I am, however, extremely cautious of CPO anymore. Wife and I have test driven a few CPO that were hammered and ran like dog snot. No clue why a couple of them were even on the lot, they were so bad.

 

[maduroman]

The strategy I've used to find the best deals on my last couple of vehicles has been to conduct a nation-wide search, using a search engine (AutoTrader has worked for me) to find dealers that are willing to discount their vehicles.

There are a couple of catches - you need to be willing to travel if necessary (I flew to DFW to get the 4Runner, but it was worth it, as I got about $7200 off their initial asking price back in Jan. 2020), and field a lot of calls/emails from dealers.

I set up a dedicated Gmail account that I use only for correspondence with dealers, and a Google Voice account, again, that I use only for communication with dealers. With the Google Voice account, you can set up a different phone number, so as to avoid giving out your real phone number to dealers, and you can screen the calls, requiring the caller to say their name, so that you can see who's calling. You can also set to "do not disturb" for times you don't want to be bugged by salesmen.

This way, I compartmentalize all communication with dealers and can choose how/if I respond.

I ended up emailing approximately 20 dealerships. Some still acted like we were still in "pandemic" times, and responded with MSRP. Others offered some discount. A couple of dealerships simply stopped responding once they realized I was going to be a "tough customer". One dealership out of Knoxville responded that they simply weren't interested in competing "outside of our market" (in response to my reply to their ludicrous offer, in which I informed them that other dealers in other states were discounting by several thousand).

For the Odyssey we just made a deal on, a couple of dealers in CA, IL & TX were advertising approximately $3500 or a bit more, off MSRP, plus taxes & fees, on the AutoTrader site, so I used that to negotiate the price down on the same van at a closer dealership. Like the previous 3 vehicles I've bought, no local dealerships would play ball, or didn't have the vehicle we wanted, so I ended up making a deal with Honda World in Louisville, about a 3.5 hr drive, but doable, and a bit cheaper than flying to IAH or ORD, where I'd have to go to get those deals from another dealership. Plus, I may end up trading the 4Runner with them if we can agree on a value. They're offering $27,000 sight unseen, which, is not great but not horrible, either, especially since I got it for a decent deal.

The deal I just accepted from them matched the offer from another dealership in Galveston (Classic Honda). Classic was at about $46,700 OTD including the roof rails I wanted (on a van that lists for $46,475), so I told Honda World that if they'd get it below $47K OTD with roof rails, I'd buy it. Initially they came back with $48K, then came down to the $47K the next day. We're supposed to drive up next Tuesday to pick it up.

They did end up knocking off the add-ons they had on the sticker addendum that I didn't want to pay for.

Here's the breakdown of our deal:

2024 Odyssey Touring

$45,500 (starting sticker)
$1395 (destination fee)
$46,895 (MSRP without dealer add-ons)

Dealer Add-Ons:
$240 (splash guards)
$190 (trunk/cargo tray)
$346 (all-season floor mats)
$200 (wheel lip moldings)
$499 ("weatherproofing"??)
$75 (nitrogen in tires - LOL)
$527 (roof rails - the only add-on I actually wanted)
$1906 (Total dealer add-ons)

$48,972 (MSRP including dealer add-ons)
$599 (vehicle prep fee)
$149 ("title and notary work")
$49,720 (full original asking price, including dealer fees, before discount)
-$5916 (Dealer Discount)



$43,804 (Sale price, before tax, title, license) (note: tax is not charged on dealer fees)

So, counting dealer fees and add-ons, difference between full asking price ($49,720) and price after discount and before taxes ($43,804) equates to almost a 12% discount. Not as good as the 17% I got off the 4Runner, but decent.

From my research in making this deal, I think it's safe to say that the new car market is softening a bit. Many dealers are now starting to realize that they can't charge markups on vehicles anymore, especially on vehicles that are in good supply (there are over 200 of the Odyssey Touring in black exterior/interior in the country right now). And, in fact, many are starting to even advertise discounts online. Of course, it's different for walk-in customers - they're probably still going to try to hit you for full MSRP if you just walk into the dealership. They realize that the customer who's shopping price online is different, and they will often advertise a discount on sites like Auto Trader. If you go to their dealership website, there will often be a link you click that says, "GET TODAY'S PRICE". This, of course, requires you to enter your email, phone, etc. I found that if I used the link on the Auto Trader site to contact the dealer, I was only required to enter my email address. Then, they would often email me and ask for my phone number, to which I replied, "email is most convenient to me", and continued negotiation via email.

Great job , I too am in Tennessee, my last vehicle was purchased in Chicago, no one locally wanted to deal
I flew in ,signed papers , drove home all in1 day

 

[John105]

We just used Costco and it seemed to cut to the chase. Upon the first email reply the discount was larger than what was posted on the forum. No dealer add ons. Seemed to change the demeanor of the selling dealer. GM quote sheets with pricing and listed features were attached. Very polite, zero sales pressure. I feel as if a low margin has been pre negotiated so it’s a near guaranteed sale for them with little effort expended both ways. Just like many doctors won’t take Medicaid because the capitation is very low, many dealers won’t do Costco is my guess. I found True Car to be worthless.

I have no way to know since this is only the 4th new car we would have purchased. But this time I didn’t have to physically go to dealerships, get asked to leave, take more off that offer, and get it elsewhere. Also Costco applies to ordered cars as well. It likely isn’t the lowest price under the sun, but right off the bat beat any price I could find online (with one exception—a Chevy dealer in Victorville CA shows $10k off list on a couple of Tahoes, maybe there’s a catch as ten thousand is a lot off)..my dad did edmunds and when he walked into a Honda dealer with the printout, a salesman simply crossed out the price and wrote “NO!” I almost expected that with the
costco price, but it was the dealer who generated the paperwork. I’d say give Costco a shot and it’s my .02 ymmv

Edit: costco does better than the below. A person likely could as well, but with how much effort and research and time? Costco is zero effort both ways imho it’s right to the paperwork with no obligation. For us I was concerned people had to pay list, and relieved that isn’t the case at all.

 

[GON]

We just used Costco and it seemed to cut to the chase. Upon the first email reply the discount was larger than what was posted on the forum. No dealer add ons. Seemed to change the demeanor of the selling dealer. GM quote sheets with pricing and listed features were attached. Very polite, zero sales pressure. I feel as if a low margin has been pre negotiated so it’s a near guaranteed sale for them with little effort expended both ways. Just like many doctors won’t take Medicaid because the capitation is very low, many dealers won’t do Costco is my guess. I found True Car to be worthless.

I have no way to know since this is only the 4th new car we would have purchased. But this time I didn’t have to physically go to dealerships, get asked to leave, take more off that offer, and get it elsewhere. Also Costco applies to ordered cars as well. It likely isn’t the lowest price under the sun, but right off the bat beat any price I could find online (with one exception—a Chevy dealer in Victorville CA shows $10k off list on a couple of Tahoes, maybe there’s a catch as ten thousand is a lot off)..my dad did edmunds and when he walked into a Honda dealer with the printout, a salesman simply crossed out the price and wrote “NO!” I almost expected that with the
costco price, but it was the dealer who generated the paperwork. I’d say give Costco a shot and it’s my .02 ymmv

Edit: costco does better than the below. A person likely could as well, but with how much effort and research and time? Costco is zero effort both ways imho it’s right to the paperwork with no obligation. For us I was concerned people had to pay list, and relieved that isn’t the case at all.

View attachment 283817

Reference the Victorville, CA dealer, In 2018 we purchased a car from Elk Grove, CA. Being out of state, new sales tax should be charged by CA (tax requirement generally to be paid in the car buyer's domiciled state).

California had a law a transporter had to move the car across state lines, that I couldn't move the car, to avoid CA sales tax.

 

[tbm5690]

California had a law a transporter had to move the car across state lines, that I couldn't move the car, to avoid CA sales tax.

Same for AZ...I bought a car at a Phoenix dealer and was willing to fly down to drive it back but they had to ship it to avoid charging me the AZ tax rate.

 

[tblt44]

Walk away
Dealerships are a rip off.
Find one not doing add ones or buy used

When looking with my daughter we walked out of a few, even after reducing the price the full add fees.
Just bought used

 

[John105]

I had seen the example where was it $240 for splash guards, $200 wheel arch moldings, etc. This is imho so 1980's. Once they do that, imho the dealer can't be remotely beat. Line item after line item of pure profit.

I can't explain it, I simply don't want to deal with any dealer like that. They'll say, "All our vehicles already have them." Why bother even "if" one can get them to remove all of it (my dad did but my point is it's not an honest place to begin with). My dad was old school said he'll take the MSO to DMV himself, not willing to pay registration fees, only sales tax. Buick GMC literally removed all add ons incl. fake paint protection and VIN etching which was in fact done. And said we'll still handle the plate but no fees (it's minimal).

I told the sales manager on the Tahoe last week, about the 2011 purchase Labor Day weekend. Went to 3 dealers, purchased at 3rd. The 2nd dealer did not counter my offer, said we're open all weekend, closed tomorrow open Monday until 5 PM. Let us know if there's anything we can do for you (no counter offer). Drove to another Buick GMC, took another $500 off the price, saw an Enclave with film on the hood, it had one of my requirements like in 2025--no optional rims, this is a killer profit maker imho and lots of unsprung weight.

As soon as I walked in the salesperson got out a 3 ring binder (this is Sept. 2011), said, "Do I deserve to make any money on this sale?"

The sales manager finished my sentence with a laugh, "No, you do not."

Costco set this tone.

p.s. an oddity in PA? You can leave the dealership with a new plate, and will be told you have 30 days to contact your insurance agent. In stark contrast to NYS--where you have to have an insurance card for the specific VIN, before you can leave the lot with your purchase. I get that in PA you really don't need a registration nor insurance nor a license to drive, because it's not enforced nor can you even be stopped in Phila. for no reggie, but I still think it's odd and bogus and not in the best interest of the general public.