Dealer Processing Fees Hit New High Around Here

[mrsilv04]

This is one area in which I have zero tolerance.

This is how it is done.

"I will write you a check for $XX,XXX for the (car/truck/van) that I just drove. You make the numbers work however you like, but the check will be written out for $XX,XXX."

If they can't reverse engineer the numbers so that they come out to the penny, then they're too stupid to sell me a vehicle.

 

[Wolf359]

Originally Posted By: Irishman
Is using a car buying service such as at Costco better than going to a dealer for a new car? I've read that Costco sells a lot of cars.


They sell a lot of cars, but what you should do is take that price and go to another dealer and have them beat it by a couple hundred dollars. In order to get that price, the dealer has to pay Costco a fee so whatever price you get, you can do a little better if you know what you're doing. If you have to ask, then maybe you don't.

 

[Leo99]

People get too hung up on line item charges. "I'm not paying that fee!" LOL

Whatever. The out the door price is the only thing that matters.

 

[MNgopher]

Some states restrict those dealership fees. Minnesota is one, I believe it limits it to $75.

That being said, agree with the other posters, only the OTD price is what matters in the end - I don't care how they get there.

 

[rat]

Unfortunately, the way the majority of dealers make their real money is in the financing and being "creative" with the interest rate. With so many customers that focus solely on the monthly payment amount, there are more opportunities for sales to increase their commission. If a customer has cash to buy a vehicle outright, its almost not worth it for the salesperson to spend the time on the transaction compared to one with bad credit that can get extra fees and extended warrantees financed in their deal.

 

[Leo99]

Originally Posted By: rat
Unfortunately, the way the majority of dealers make their real money is in the financing and being "creative" with the interest rate. With so many customers that focus solely on the monthly payment amount, there are more opportunities for sales to increase their commission. If a customer has cash to buy a vehicle outright, its almost not worth it for the salesperson to spend the time on the transaction compared to one with bad credit that can get extra fees and extended warrantees financed in their deal.


I've read that the "nice" guy in the closing office makes the most money for the dealership. I 100% financed my Camry at 0% interest rate. Can't say no to that.

And you're right, one dealer I shopped at just wanted to know how much I wanted to spend a month.

 

[wtd]

Years ago I almost got ripped off in the financing department but since I had already figured out what my payment should be for the amount that I was willing to pay for the truck and knew what interest rate I would qualify for, I caught it before I signed any papers. If I had not been prepared, I would have been paying about $40 a month more for the credit life insurance they tried to slip in on the contract.

These days I have a loan calculator app on my phone so I know exactly what I should be paying once I'm in financing. I also never tell the salesman or anyone else at the dealer what amount of payments I would like. I already know how much vehicle I can afford for what payment amount I'm comfortable with before I even hit the lot.

 

[DAC17]

Originally Posted By: Trav
Let them put it in then go to sign look astonished and declare your not paying it and they keep the car then start walking, they chase you down and you tell them your leaving if they don't drop it. Watch how fast the dump it. Whatever you do once you walked out don't go back in until they agree, the basta.. will give you to the TO or FI man.
I always loved a good fiasco at the dealer especially when they don't have my money yet. Today I know so many guys in the business I just call and get a deal, no shenanigans.


Outstanding technique. Surprised more people don't do that.

 

[Silverado12]

My wife was looking for a Jeep Cherokee to replace her 2012 Equinox as it gets miles piled up fast because she uses it for work (home care therapist). Long story short the local Jeep dealer wouldn't budge on the $700 fee and they lost the sale. I was looking for other dealers when I found the link with the 1K fee. We ended up going to MD to get the Jeep $500 cheaper. For anyone interested, Jeep has a $4,500 rebate now on the Cherokee. She got the 4WD one and it rides and drives really nice. I tried the "out the door" thing and they just wouldn't do it. There was a trade involved, so I assume that had more to do with the sale than anything else, though.

 

[demarpaint]

Originally Posted By: DAC17
Originally Posted By: Trav
Let them put it in then go to sign look astonished and declare your not paying it and they keep the car then start walking, they chase you down and you tell them your leaving if they don't drop it. Watch how fast the dump it. Whatever you do once you walked out don't go back in until they agree, the basta.. will give you to the TO or FI man.
I always loved a good fiasco at the dealer especially when they don't have my money yet. Today I know so many guys in the business I just call and get a deal, no shenanigans.


Outstanding technique. Surprised more people don't do that.


It is very easy to beat them at their own game, and that's one of the fun ways.

 

[MCompact]

Originally Posted By: Silverado12
I tried the "out the door" thing and they just wouldn't do it.


That's when I would walk; I've never had a dealer refuse to negotiate an OTD price- trade or no trade.

 

[demarpaint]

Originally Posted By: MCompact
Originally Posted By: Silverado12
I tried the "out the door" thing and they just wouldn't do it.


That's when I would walk; I've never had a dealer refuse to negotiate an OTD price- trade or no trade.


Me either. A way to test if you got the very best price is to get up and walk out, after heavy negotiating. If they don't chase you out to the parking lot offering you a better deal, odds are you got the best price they can offer.

 

[4WD]

At one time - trading your brand on the same brand meant something- Now ? I think the biggest insult is what they give in trade - then don't bother swapping your trade to another dealer - and post it for sale at a huge mark up.
Better off selling your car - even if to a multi brand dealer.

 

[Tdbo]

Originally Posted By: Leo99
People get too hung up on line item charges. "I'm not paying that fee!" LOL

Whatever. The out the door price is the only thing that matters.



I agree. However the audacity to charge basically a $lK processing fee makes a statement about the kind of dealer they probably are, and it's not a positive statement.

 

[funflyer]

Reading this thread reminded me of buying my utility trailer. $1500 trailer and the dealer added a 10% processing fee on top of the registration fee. I told him I wasn't going to give anyone $150 for typing my name and address into a computer, got up, thanked him for his time and headed for the door. Before I reached the door, he started to negotiate and we agreed on $40. Took him all of 5 minutes to process and print the paperwork.

 

[nthach]

Originally Posted By: rat
its almost not worth it for the salesperson to spend the time on the transaction compared to one with bad credit that can get extra fees and extended warrantees financed in their deal.

When I worked at the local Honda dealer almost 10 years ago, I was a fly on the wall for many questionable conversations in the sales office and I also saw the F&I guys try to take people like that to the cleaners. Sometimes we gave away "extras" like paint and fabric protection and window etching to sweeten the deal.

Now, dealers here use Uber or Lyft to get those buyers in the door - you need a 2000 or newer car to drive for them, so it's driven by necessity.

 

[jimbrewer]

Originally Posted By: KrisZ
When you negotiate on the final, out the door price, it's irrelevant.


Exactly. The Brits call it "OTR" on the road. Does require you to to familiarize yourself with the arithmetic of tax and registration in your area.

P S. I should say that OTD doesn't necessarily mean "take it or leave it". For mostly psychological reasons that's a good way to squelch any deal.

 

[Gasbuggy]

I was just at Weber Chevy in Missouri, $149, that is all they charge.