Newatthis

Dealer fee, more markups/pure profit for the dealer, also known as the "steak and lobster" dinner fee for the sales manager. When i was shopping, i asked the sales reps to cleary explain what it is...none could to my satisfaction. I was told it's for "processing paperwork, doing the transfer, documentation, etc".
In other words, extra markup, charging the customer for doing business with them. Invoice is just the start. There's hold back fee from Ford that the dealer gets, and if you factor in rebates from costco, factory, etc, that should be deducted from this point.

What i did was was found out the dealer costs for the car and all options i wanted then, deducted the holdback fee, and applied all rebates, and offered 2% profit after all the rebates and deductions. The "dealer fee", i deducted from the subtotal price of the car. The invoice still showed the figure for the dealer fee, just to show i "paid" for it like everyone else. None would budge over the dealer fee, so i just deducted the same amount off the price of the car.

I emailed the sales manager for each dealership that i've visited for weeks, that i felt i could do long term business with, with my offer clearly spelled out. I took the one which accepted that i was most comfortable doing business with.

No pressure tactics and they knew i was serious. The deal was done over emails, and conversation to confirm the deal.

Diabolical!

A. Pure profit for the dealer. Usually justified as the cost of doing menial paperwork.
B. Because everything is negotiable and you should never pay more than you think the car you are buying is worth.

mfergel

Also, invoice is a scam. Most dealers get 'rebates' themselves from the manufacturer. For example, if they take delivery of 200 cars for a year they will get $500 off each vehicle, etc. Dealers rarely pay dealer invoice themselves.

dcarlinf1

THIS! The dealers' cost or doing business, keeping the lights on, paperwork, etc. is not my responsibility. I realize they have to make a profit to stay in business. But, if the agreed upon price of the car does not allow them to stay in business, that is not my problem. Eff'em

FYI - I've seen some dealerships list the "dealer fee" on the price sheet as well as a "credit" in the same amount. So, no blood that way.

Just remember everything is negotiable and if they are not willing to deal just ask them "Do you want to sell a car today or not?". And, be prepared to walk at any time.

dmhines

Actually .. advertising fee is not negotiable - that money is what the dealer is paying FORD for advertising. However ... with XPLAN the Dealer fees are normally a Flat $99 .. so if they are charging you $595 for same thing .. I would think they are negotiable.

TypeS

My salesman's explanation of the $595 fee:
"We have to inspect, prep, fuel and detail the car twice. Once when we receive it and again before we deliver it to the customer."

So look at a car, pull the plastic off, fill it up, and wash it = $595. Right.

Entaille

well, they do have to do all of those things. the problem is, they are paying some kid minimum wage to do it all and he's probably doing more harm to your paint than good by making it look 'clean' with his gritty *** wash materials. that certainly doesnt add up to 600$.

depending on the deal I am getting I am OK with paying some bull**** surcharge fees but not to that amount. couple hundred, sure.

JK 23112

Stealerships here in VA are famous for that -- and the even post the VA State Code section that "allows" (but does not require) them to charge a 'processing fee' on all vehicle sales, new or used. The lowest I have seen is "zero" (very, very rare) and the highest was $599. There is usually a very small disclaimer at the bottom of the sign that says, "Not required by law."

The Ford dealer nearest me has a sign in their showroom that their $399.00 or $499.00 (I forget which) "processing fee" is for everybody and they tell you that it is not negotiable. When I saw it on the day I turned in my leased 2008 Mustang GT after two years, I asked the sales manager about it. He said it was to cover "paperwork" and miscellaneous expenses.

Without being a jerk about it, I politely assured him that I would NEVER AGAIN do business with their franchise OR buy a vehicle from their Toyota store fifteen minutes away (after having previously leasing two vehicles from them and buying one). In years past, it was $99 to $198 and their "deal" always INCLUDED it in the price. Now they have jacked it way, way up and want it IN ADDITION to whatever deal you make. Beyond that, they charge a 'business license tax' (about 50 or 60 dollars, if I recall correctly) -- as though you are buying the dealership rather than just a freaking car! The business license is THEIR EXPENSE - not mine.

If you are serious about avoiding this fee, be prepared to WALK and WALK RIGHT AWAY. Have your own bank or credit union financing, do not have a 'trade in' (sell it yourself) and present yourself as a cash buyer to them. You will have a lot more leverage. Keep in mind that these vultures sell dozens of cars every month and you buy one every couple of years. Who do you think has the upper hand? They do!

I have nothing against a fair profit, as we all gotta eat - but this crap is getting ridiculous. If you give me xxx price on a car, the ONLY extra stuff I should have to pay for is state sales tax, state title fee and the license plates.

"Caveat emptor" is true today more than ever, folks.

Mayberry40

Dealers will not talk about their BS DOC FEE's!!!!!!
Ask up front what their BS DOC FEE is!
I will not pay the BS DOC FEE!

JK 23112

If I recall correctly, they are not allowed to call it a "documentation fee" in Virginia, but have to refer to it as a 'processing fee' instead. I have no clue as to why......but they figure that 99 percent of customers are going to happily pay it in order to have new-car smell.

They will tell you that they have to charge it to EVERYBODY and it is even hard-printed at the bottom of all of their sales orders -- but everything is negotiable.