One dealer wanted to charge me $2000 if I didnt finance through them, $500 for the pulsing rear third light, $500 lost key program and all this other crap. Needless to say I walked out.
Financing thru them? "No problem, I'll refinance it as soon as I get the payment book." Pulsing tail light? "You think I'm going to pay $500 for you to vandalize my car? Not only will I not pay, you have to take it off and return it to stock working order." I had a dealer once try to add advertising fee. He said all the dealers pool the advertising and all agreed to add it. I said that I didn't agree and furthermore I didn't even see any ads, so you need to take it off. They wouldn't, so I walked. He watched me walk to the car dealer next door.
The pulsing tail light is not DOT approved equipment, you can get a ticket for that in theory. I asked a salesman if it was DOT approved. He told he would ask and called someone and they said "no". I asked him if made any sense that the dealership would take on that possible liability and left.
I have been watching these since last month and I have learned so much. Thank you so much for educating us as consumers. Can you imagine that it is probably easier to buy a house than buy a car.
Not really 😅 Depends on the salesman. There are some guys that say shit like, “oh, these walls are fortified with fucking uranium and titanium” and bs like that just to bump the price up
I walked away from the sale on an Acura RDX I really loved because they demanded I pay a $1500 reconditioning fee plus a delivery fee (I'd be picking it up from their lot, so it made no sense!) and some other small fees. They wouldn't budge and neither would I.
It is actually about time this idea of add on fees were made illegal. The advertised price of the car should be what you pay (unless you negotiate it down) all these add on fees are a giant con. I have to say overall the advertising standards here in the USA are a disgrace and there is little to no consumer protection and in truth it is on us to form consumer groups to push this concept on to our law makers. I feel there is a huge gap in the market place for a truly honest and transparent way of selling cars and the first company to actually achieve this will be very, very successful.
Unfortunately it’s a free market which I’m all in favor for but the bullshit fees like advertising fees and add on fees for stuff you didn’t ask for and would’ve gotten it cheaper somewhere else with labor factored in should be made illegal
These are good tips. Thank you. I had one dealer who wanted to charge me $2,000 for the paint protection and tinting the windows. I told the salesperson I didn't have a need for those things especially since the vehicle wasn't even at the dealership yet. I could have the windows tinted and paint protection put on it if I wanted to for a lot less expensive price someplace else. The salesperson took those charges off. I still walked out as the OTD was still too high.. Dealers may need to make money, but too many of them think they can take advantage of the customers. I guess that's why so many people don't find the car buying experience enjoyable.
It’s funny you said Telluride. Local dealer asked me and I quote “Are you able to come up at all above msrp? Cuz the markup is $15k on tellurides and the most I personally have ever been able to take off is 7k off and to get that was a grind.” I then told him “MSRP and I’m there taking it off your lot tonight.” Which was followed by “Can you even meet me in the middle?”….keep in mind this is after me calling them out that they have the same telluride on the site (with dealership photos) for about 30 days now (along with a decent amount in inventory), me calling out the market etc.
Well, I waited until December and things have gotten worse in regard to new sales where I am at. In fact, I went back to the dealer (RAM) that I was at 4 weeks ago and asked he could do a little better on the vehicle and he told me that they would no longer take a Ford lease, when 4 weeks ago they would allow me to. I also checked at GM dealers and they will not longer accept anything but GM leases (they would entertain my lease 5 weeks ago). I am officially out of the buyers market now. Fords are way too expensive even with a z-plan. There are no longer new trucks available for the middle class.
I charge the dealers these fees: 1) transportation fee. The gas I spent to get to the lot. 2) grooming fee. Shower, deodorant, clothes and toothpaste. 3) F-U fee. For wasting my time rejecting fake dealer fees.
Yep, got the “we don’t mark up our cars, the added accessories are things that we consider added value to the vehicle”…uh huh, but I don’t want any of that stuff. Buying the car without stuff I don’t need and which added $1350 to the price is what I consider added value to me!!
Went by dealership in October & again this week. Still had same only 4 cars, but MSRP stickers had been removed & new ones with $5000 increase added. You could clearly see old glue where they had tried to remove old sticker. You haven’t sold those cars in weeks, but you jack price up HIGHER! Don’t know how they keep doors open. Did notice on first visit had showroom with several employees. This time only ONE salesperson & the manager. I’m still waiting to 2023 to see how things shake out.
I love these videos I've learned so much from this channel. About to purchase my first car- going to another dealership today . Doing my brush up work before speaking to another salesperson, I feel prepared and ready to beat any hidden fees. Thank you again for all that you all do!!!!!!!
What that means is the real price of that sixteen year old Buick, was $7,599. Any fee which is included in the taxable amount is a FAKE fee. Those fees are just the selling price separated into different parts. Dealers hope customers will negotiate the price as if it is the actual price and simply pay the FAKE fees on top of that amount thus increasing the dealer's profit.
@@amya9597 here in Michigan my f350 super duty just came from Kentucky had a 2024 built and they want a dock fee of $260 but i was told the firefighter discount and the doc fee would be waived and now my sales men is fared sinse ive was there 5 months ago and the dealer wont honor the 2 discounts any more u think i should just walk !!!!!!!!
One thing that "Pops" should have mentioned with the used car reconditioning cost is that's factored into the delta between the Kelly Blue Book private party vs the dealer trade in prices. So they're definitely double dipping with that one.
My current Chevy: the dealer threw in rubber mats in addition to the standard carpeted mats at no additional charge. I did have them install a factory trailer hitch and supply roof rack crossbars. They did not pack anything into my deal. A pleasant experience. That was in April 2017. If like to buy a Honda Odyssey EX-L. The local dealer is advertising otd pricing that is fair. I may be in contact soon...
I had a dealership try to charge me a Convenience Fee of $450. After asking a few people I discovered it was for the waiting area, the "free popcorn, coffee, and soda" which was offered to me. I politely put a dollar on the table for my soda and asked that they take off that fee -- which they did, and several others that you already mentioned in this video.
Ain’t no way they tried to charge you for the waiting area “free popcorn and drinks” what’s that gonna do for them? They’re gonna make hundreds times more in car sales than money spent on making their customers experience a bit more better
@@ammarisrar2005 For them it's a potential revenue stream, just like everything else. If someone is paying $50K for a vehicle, what's another $450.00, right? At an average of 200-300 cars per month that's easily about 1.4M in pure profit every year. I'd snap a pick of the original paperwork to show you, but it was 9+ years ago and don't recall where that was filed away.
I love these kinds of videos Ray, please do more like this! These are far more helpful to a consumer than daily trends that ultimately don’t amount to much!
Just helped my partner buy a new CR-V at MSRP yesterday, no extra fees. The window sticker had about $8k in dealer add-ons, but they verbally offered $2k. The sales person said this was a good price. I said we want a great price or we are leaving now without a car. We said a number below MSRP. They asked to explain the price, and for the dealer add-ons, we said you added them and we don't want them, so we won't pay. They agreed to remove the add-on pricing, but wouldn't come below MSRP. We probably could have kept pushing and working with other dealers, but we are tired of shopping. Been doing it for six months. We guess we saved about $12k not buying six months ago. Luckily, we sold the previous vehicle months ago, and got a crazy price for it. This was in the Los Angeles area.
Some tactic that dealers often do to discourage you from walking away is asking for the keys to your current car to value it for trade-in. I learned this the hard way.
Crabtree Buick GMC in Bristol Virginia was one of the best dealerships I've ever dealt with concerning fees. Taxes plus $135 to transfer the tags from my trade-in (Skyline Motors in Knoxville tried to hit me with over $700 to transfer), and that was it.... I've found my go-to dealer after months of shopping.
The typical market adjustment here for a '23 Chevy Bolt is about $3k. There are non in stock, so dealers aren't budging. High demand, low supply. I'm guessing the Cadillac Lyric will be somewhere between $8k and $12 market adjustment and dealers will be happy for you to walk away because the next customer will be willing to pay the ransom.
I just walked away from a used car deal last night. I wanted to wait but i got a new job so I'm going to be commuting again so i need a non gas guzzler. Shopped online for weeks, found the used car I liked with the options I wanted. Drove 50 miles to the dealer on the other side of the cities, armed with knowledge from this channel and being a car guy. Drove the car, liked it. Found some things that needed addressing. Went inside, he comes back with the menu, out the door price for a car they are advertising for $24,900, was $35,000 and change! I started laughing so hard. He got so mad. "But sir, market adjustment, all dealers are doing it. Uou won't find a better price anywhere, trust me" I proceeded to waste his time arguing for an hour because I'm an engineer and I enjoy arguing, plus he wasted mine making me drive two hours. They wouldn't budget a nickel and insisted I was being unreasonable. Said they weren't running a charity to me. And maybe I'd be better off in an old beater car! 😆
Here’s the deal. Some dealers will intentionally advertise an insanely low price to reel you in. Then they’ll tack on the crazy fees. Because of this, you should expect to pay at least some of these fees or else they won’t make a profit.
Thank you very much on all your info it helped me purchase my Jeep Wrangler on Dec 1, 2022, and yes they tried the reconditioned fee and NO I didn’t fall for it, Went elsewhere. Thanks again, Jim’s Drones.
Great video Ray! You are one of the best. The short and precise topic of video, makes it easy to listen many time to have the valuable information sink in. Makes it easier to remember.
Looked at a new Buick Envista that had a $599 protection fee (paint correction whenever needed, interior protection, etc). Asked if they would take it off bc i wouldn't need/want them and dealer said the cars are already delivered with them installed. Asked if i could order from the factory without the protection and they said no. Walked away
Never forgot when a dealer (pre-pandemic btw) offered me their "MVP" price on a vehicle I was shopping for. Of course I asked what "MVP" meant, as I was thinking "most valuable....something". Found out it meant Market Value Price (which was about $2500 above MSRP). I chuckled and walked and purchased elsewhere.
VIN Etch…. Dealers aren’t even etching the glass any more. Sometimes they just put a sticker somewhere on the car with the policy number. Sometimes they don’t even do that. What you are really buying is a bogus insurance policy that gives you a few $$ if the car is stolen and never recovered.
…I miss the days when I could offer $500 above invoice and I shopped my offer around until I found a dealer that would accept! Usually by 3rd dealer, I had a deal. Now I’m on a 12-14 month waitlist to pay MSRP for what will be a ‘24 Corvette when my allocation comes up at a top 3 Corvette dealer known for NOT playing games. C8’s are $10k above sticker in my area and dealers still aren’t budging…but it is a high demand/low supply car…
@@XX-166 …my offer of $500 over invoice always included me keeping any rebates and not paying any bogus fees too…I don’t mind the dealer making a small profit, they’re just not gonna rip me off…
@@BandDirector ya never give them any extras that they’ll make on the deal anyway. Invoice is always the starting point and then downward not the other way.
Went to a dealership yesterday and they wanted to charge 5000 of dealer add on over the windon sticker price and they just rec'd the vehicle. One if those charges were 899.00 dillars for window tint and the window sticker already had the window tint included in the price. Good thing I was only getting in practice. When I am ready to purchase I will be prepared.
My manager tried to get me to sell the extended warranty on used cars we were selling. I wouldn't, so I quit. $300 commission to me and that was 25 years ago
Was working with a dealer in New York. Recondition fee 2100. Crazy ppl.o and a mandatory fee of 995 for the lo jack. Bro is a Tesla it doesn't need a LoJack.
Just bought a new Mazda due to add ons from the other dealer. First dealer wanted to TOY..... with the price ($389 government fee, $500 for LoJack, $299 for nitrogen, and $1,000 for interior/exterior protection) and full sticker for the car. Mazda dealer gave me straight price for car and then we did purchase protection for the white seats and extended warranty. The two add ons cost less than the "protection" package from the first dealer.
I might consider paying those ridiculous fees if they were selling the car at the cost they paid from the auction. Since we know a dealer would never sell a car for that price, I will never pay for those additional fees
It happened to me. I decided to stop communicating with them because they wanted: Selling price: $22,900 Reconditioning fee: $1,999 Proc/doc: $1,700 And so on... Long story short, the vehicle went up to $28,840 Ps. They rose the selling price in December to 28k. Car has 47k miles and has been sinking there for 115 days. Okeechobee dealer, Florida
I am finding FL dealers are the worst I have ever dealt with before. Do they think we all just moved down here after selling our homes in NY, PA, NJ, or somewhere crazy?
Check out Earl Stewart on Cars for some amusing mystery shopping in Florida. Those mystery shopper reports clearly show what you describe is common in Florida.
Heck. With #5, I’ve already created a Spreadsheet, for all of my, 27+, Mazda Clubs, in a few countries, that has a list of every Mazda Dealership in those countries. And, as for America, my Spreadsheet like which dealerships are charging “Market Adjustments”, AND, dealer “Add-Ons” as well.
Reconditioning, built it into the price. Advertising fee, built into the invoice from the factory or into the cost of the used car Additional destination fee charged for dealer trade Dealer add-ons, most of it is junk, usually used to show a bigger discount or trade allowance Market adjustment, you worked at a Honda store, you’re the expert.
Excellent videos and tips. I went to check out a certified used Lexus and the salesman presented to me both a reconditioning fee and a destination fee. I told him I'm not paying the reconditioning fee that is your cost. I am certainly not paying a destination fee because there is no fee the car came off a lease and the person who was leasing the car drove it back to the dealer per the carfax report so what destination fee are you talking about. I walked out. The next day he called me and I didn't want to be bothered so I moved on. Will wait until I find the right deal probably will go with a new car but not in a rush.
It's crap like this that will make me hold on to my car until it no longer moves. I'm sick of just hearing about the games dealers have ramped up these days. I used to buy through buying services or Costco but dealers won't even call you back any longer when they see that in your inquiry to them.
I went to a Dealership in two different towns in Atlanta area and both did exactly the same thing! They were trying to charge me a reconditioning fee on a 2018 Pro-4x and on a 2022 frontier SV! Then a doc fee of almost $1100 which it’s only 545 in Georgia and so now 1 of them is trying to get me to go on a lease of a brand new one. It’s clear neither one wants my business because it’s ridiculous on the prices and they tried to seriously lowball my trade and they tried to combine them and I fought to separate each transaction but they didn’t want to do that. At the end of each time with the dealership I was upset and didn’t even get what I wanted but actually much smarter! I told one that they’ll be hungry for my business in about 2-3 weeks when it’s the end of the year and the vehicles they have are so expensive that they can’t sell them and I’ll go back to see if they’re willing to work for a deal
The deal sheet lists a “government fee” of $575 in addition to taxes and a $175 “theft shield” fee. Are these a scam? There’s also a document fee of $549, which is that bad. This is in Tucson AZ. I’ve never seen the government fee separate from taxes before. Thanks!
I was charged extra at kinkos to open the file once. It's like being charged extra to open the hood during a car oil change. Never went back there again.
Love this style of videos..we are here to learn.. you provide so much details and it's simply amazing.. I'm sorry to say this but Zach is not the best listener, he's always cutting you off and just wanna talk..more of just Ray, please.
May I ask a question? I'm waiting on a 2023 Accord EX-L hybrid in Canyon River Blue. Salesperson says it will take a while if I want a Blind Spot system installed. So she suggests a separate company which will charge me $1400 ( 3x more than Honda). The company in question says to tell the dealership to pay this fee. 1. What do you think of all of this? 2. Do we tell Finance in our meeting and not the salesperson? Thank you very much
I’ve been trying to get a 10th generation accord and all of them are crazy with their fees. they’ll list it for 23-26k and it’s always 30-32k after fees, I keep my time in besides the test drive less than 15min because most times they’ll say most they can knock off is 500-1000$. I went yesterday and they wanted 31k after a 26k listing and I told them why would I pay that amount when I’ve went to other dealers for a new 2023 civic for literally 31k and they give the most dumb responses. I can’t wait for them to lose money.
Years ago, my local Ford stored wanted to add an advertising fee. I said the same thing: "that's the cost of you doing business. Why don't you charge me for the popcorn or toilet paper?" Sales-dude glared at me and then removed the fee.
I countered with, You put a sticker advertising your dealership. I charge $1,200 month for that privilege on MY vehicles. Wrote it into my purchase agreement. Same with "doc" fees. I charge a $1,200 fee for filling out the "docs". Got both taken off.
They marked mine up 2500 above MSRP for "market adjustment" claiming I get pulsing tail light, 1 year paint protection , all weather floor mats and wheel locks. Said that could not be negotiated. The more I thought about it the madder I got. Told them deal was off and I put a stop check/payment order in at my bank. Car had not been delivered to dealer yet and I still had my car. We went round and round and they finally took that 2500 off and re-wrote the contract. I pick my car up tomorrow.
Northern Virginia used to be infested with double destination fee charging dealers. Most have stopped, but there are still a few out there….talked to one today, and he just refused to address it with me. It’s an unethical practice that drives buyers to more honest dealers.
The "deal" is those fees are FAKE. They are just part of the price. Dealers separate the price into the price plus fees. Consider it as part of the price you agree to pay. Do not agree to pay it as a separate item. Just reduce the price by the amount of the FAKE fees.
A lot of these add on fees to me sounds like here say, how do we know if the dealership actually did these things (undercoating, leather protection,this and that etc.)
Looking for a new 2023 Toyota Prius Prime. Some dealers insist to add the extended warranty and rust proofing, or they won’t take my order, or lower my rank in the waiting list. What can I do except walking away? I have no rush to buy this car, and no need to finance. I think this is my advantage.
Ray, Zach... you're close, but not yet optimal with OTD strategy. OTD price should be an itemized list of all discrete fees. So, DON'T start with sales price, because the "sales price" is still a grouping of discrete fees. If you start the OTD itemization with "sales price" then you run the risk of overlooking a duplicative charges (e.g. "Freight" or "Delivery"). By listing all the MSRP items and the dealer incentive and the remaining OTD items, then you can more easily protect yourself against bogus charges. Below are two formats of the same deal. Tell me; which OTD itemized list format is easier to spot the double charge on Freight? OTD (Car Edge v1.0 Style) Sales Price 50,000 Tags/Title 300 Freight 1,500 Tax (Va) 2,200 Total 54,000 OTD (Optimized) MSRP 52,000 Floor Mats 250 Roof Rack 400 Freight & Handling 1,350 Dealer Incentive -4,000 Tags/Title 300 Freight 1,500 Tax (Va) 2,200 Total 54,000
Market adjustments should be a price drop theze days so tell the dealer your willing to offer a couple of grand lower than msrp market adjustment , just because
In my home state, the dock fee is an optional fee, and not required by law. Because of this, I bring up the actual statute of the law, and refuse to pay the dock fee. The dealership hast to do this work, regardless, as part of their legal obligation to complete a motor vehicle sale, so I’m not going to pay them for work that they legally have to do. I don’t pay for anything outside of the purchase price of the vehicle.
Never had to work with a Dealer before I retired 5 years ago. I had a Fleet Contract with Ford for my Trucks & Cars, including Lincoln & Mercury. Simply went to my Factory Rep to check if there were any added incentives, picked out the Vehicles & Packages we needed and designated a Dealer for Delivery. Now having to buy our cars direct from Dealers is like a bad dream that recurs every time we replace a Vehicle. They were happy with the Delivery fee that Ford paid them, but buying a car they own, is a whole different animal. Sadly my favorite Dealer was a Lincoln/Mercury Dealer where we purchased all our Sedans and later SUV's, went out of Business and the Ford Dealer who probably made 10 of thousands delivering our trucks, acts like he never knew me! Went from a nice walk, now to a Dentist Chair getting your teeth pulled!
Dealers have alway been allowed to jack up the MSRP. The key word in MSRP is SUGGESTED. Dealers care about the buyers dislike of their FAKE fees if they cannot sell the vehicle.
@@scottr2706 Yeah, but the auto industry is probably the only industry that regularly manipulates the price of their products and tries to trick their customers into paying more than they have to by using "fees".
About point number 3: If you're buying a new car, there will always be a "destination charge". It is typically north of a thousand dollars and is not negotiable. Trying to haggle with the dealer over this will get you kicked out of the dealership. Manufacturers charge that to the dealership to transport the cars from the factory to the dealership, who then forwards that cost to you. It is a legitimate expense that a dealer shouldn't have to pay for. What you should avoid is any other "destination fees" on top of that. Especially for used cars - those should never have any destination fees at all, because the transportation of a used car is paid for by the dealer and therefore already included in the selling price.
Looked at a Ford F350. Dealer had tacked on an additional $5K, just because. Needless to say. I walked away. And had a Chevy dealer tell me they would have to charge over MSRP on a Silverado 1500. Not happening.
How about a market adjustment in my favor since the dealers new car inventory is now over flowing the paved lot onto grassey areas of dealers property? Probably a violation of city code.
I was told by one dealership that the bank I was going to finance through was actually charging the dealership 4K just to sell me the vehicle. What is up with that? He said they just couldn't eat the 4K so I excused myself and let them know neither was I. This seems it should be illegal.
I nominate #6: Document fees. They want me to pay $500 or $1000 for a half hour of paperwork? A lot of people seem to accept this but I think doing the paperwork is a cost of doing business, therefore doc fees are nothing but a cash grab. No thanks.
You are 100 percent correct. Those doc fees are FAKE, period. YAA used to say the same thing, doc fees are FAKE. Sadly, like many of these on line experts they have gone over to the dark side regarding the FAKE doc fees. The preparation of documents is just a dealer cost. No different than any other dealer cost such as rent, building insurance, wages, office supplies, etc. Price, by definition, includes ALL dealer costs to do business. All dealer costs include the very, very minor cost associated with documents.
Agree. I was at a Subaru dealer could get all the fees waived except doc fee of $700. They wouldn’t split it. Said for taxes purposes they can’t charge me $350 and everyone else $700 the only way they could cover it was by taking it off the “price” which apparently I already got them to their lowest price. Literally left dealer because we were $350 short of making the deal. Crazy to think they would let customers just walk over a few hundred bucks
@@Robbie10888 There is no law in any state which requires a car dealer to charge a doc fee. That is always the decision by the dealer. The reason dealers have to show the doc fee at the same amount for every customer is due to advice from their attorneys. This is to ensure the dealer does not get sued. But that does not mean they actually charge the fee to every customer. They will often lower the price or raise the trade value if the customer balks. The last vehicle I purchased was BMW. We negotiated the price when the sales person pulled up the numbers on his computer. There is was, a $300 doc fee. I said no, knowing full well the dealer was not going to lose a $60K sale over the doc fee. The sales person quickly darted into the sales manager's office with a revised offer which raised the agreed upon trade value by $300.
@@scottr2706 makes sense so they take the price off the car. I was just at a Volvo dealer looking at a used 2020 S60 with 19k miles on it. They originally wanted $32k but since it was listed for 55 days they keep lowering it. Yesterday it was priced at $27,444. I offered $26k with no $699 prep fee. They came back at $26,444 with no prep fee but they would have charged a $799 dealer doc fee and they said that was the best they could do. So we walked. I am not sure if Volvo just aren't that much in demand or what overall nice car. I am sure 3-6 months ago that car would have been sold for $32k within a week. Also saw Subaru legacy 2020 with 5k miles on it priced at $25,704 they came down $1,000 and that was sitting on their lot for 45 days. I passed on that deal. It seems to me the car market is changing. more supply less demand. Also interest rates being so high is not making cars affordable. I have an 800 credit score and the best I can get on a 4 year car loan is 5.24% from a credit union. Also since trade in values went way down I don't see too many people trading their car in to buying a new car. Obviously dealers will pull the chip shortage and used car are extremely low in supply and they will try to keep prices high but are willing to neg to make a deal. I am in no rush to buy a car. I sold my 08 Accord privately in June. My wife and I both work remotely so don't really need 2 cars. I'll see what the end of Dec brings but if not ill just wait to not year for more to drop then hopefully by then I'll have enough saved up to pay cash instead of taking out a car loan.
You can use the acronym “D.R.A.M.A.” as a reminder Dealer add in’s Reconditioning fee Advertising fee Market adjustment Additional destination Fee. NO D.R.A.M.A.! 🙂
I bought a new truck that was still in route to the dealership. They tried to add a $2500 desert package (window tint, door edging, etc.). Salesman said they put that on every car. I responded that it's not on this one yet, so they can leave it off. They got rid of it and we made the deal.
I think only the fees that are required by the State, like taxes. Or maybe if there are other options you selected, like an extended warranty or ceramic coating.
Great advice but dealership in Houston, TX refuse to remove dealer installed equipment even on new vehicle orders. Also I did not get any response on your YAA community post 🙁
Just ordered a 2023 Civic Sport, MSRP + $599 for window tint. Car being built, should be in by mid January.Not given the out the door price. Tax, tags, and documentation fee not included yet. Any advice? Thanks
I visited a Honda dealer the the used car MSRP was 19k for a certified vehicle and the wanted me to pay $799 Recon, Doc fee of 699, 2600 for the CPO, title and registration 399. They would not budge on anything. I declined the sale and said thank you went to the restroom. My significant other was waiting for me to return and the sale manager stated the $2600 was optional. Which didn’t make sense taking away the certification is an add on? Again said thank you and walked out,
What about the stupid add-ons for new cars? Items such as floor mats, first aid kit, cargo net, etc. these are things that could easily be removed, and most of the time are simply sitting in the trunk of the car. I had a salesperson tell me they couldn’t remove these items because it was illegal to do so since they were on the sticker,
One dealer wanted to charge me $2000 if I didnt finance through them, $500 for the pulsing rear third light, $500 lost key program and all this other crap. Needless to say I walked out.
Financing thru them? "No problem, I'll refinance it as soon as I get the payment book."
Pulsing tail light? "You think I'm going to pay $500 for you to vandalize my car? Not only will I not pay, you have to take it off and return it to stock working order."
I had a dealer once try to add advertising fee. He said all the dealers pool the advertising and all agreed to add it. I said that I didn't agree and furthermore I didn't even see any ads, so you need to take it off. They wouldn't, so I walked. He watched me walk to the car dealer next door.
The pulsing tail light is not DOT approved equipment, you can get a ticket for that in theory. I asked a salesman if it was DOT approved. He told he would ask and called someone and they said "no". I asked him if made any sense that the dealership would take on that possible liability and left.
What is a DOT and pulsing tail light?
I have been watching these since last month and I have learned so much. Thank you so much for educating us as consumers. Can you imagine that it is probably easier to buy a house than buy a car.
Not really 😅 Depends on the salesman. There are some guys that say shit like, “oh, these walls are fortified with fucking uranium and titanium” and bs like that just to bump the price up
I walked away from the sale on an Acura RDX I really loved because they demanded I pay a $1500 reconditioning fee plus a delivery fee (I'd be picking it up from their lot, so it made no sense!) and some other small fees. They wouldn't budge and neither would I.
Doubt it
Job well done.
Good chance they will be calling you soon to ask you to come back in 😄
@@DennistheMenace2011 I went elsewhere and got a way better deal.
You did exact what you should’ve done.. reconditioning fee??😂😂😂
It is actually about time this idea of add on fees were made illegal. The advertised price of the car should be what you pay (unless you negotiate it down) all these add on fees are a giant con. I have to say overall the advertising standards here in the USA are a disgrace and there is little to no consumer protection and in truth it is on us to form consumer groups to push this concept on to our law makers. I feel there is a huge gap in the market place for a truly honest and transparent way of selling cars and the first company to actually achieve this will be very, very successful.
Unfortunately it’s a free market which I’m all in favor for but the bullshit fees like advertising fees and add on fees for stuff you didn’t ask for and would’ve gotten it cheaper somewhere else with labor factored in should be made illegal
NC and SC dealers are the worst at Scam mark up fees, especially Rick Hendricks Dodge in Concord, NC
These are good tips. Thank you. I had one dealer who wanted to charge me $2,000 for the paint protection and tinting the windows. I told the salesperson I didn't have a need for those things especially since the vehicle wasn't even at the dealership yet. I could have the windows tinted and paint protection put on it if I wanted to for a lot less expensive price someplace else. The salesperson took those charges off. I still walked out as the OTD was still too high.. Dealers may need to make money, but too many of them think they can take advantage of the customers. I guess that's why so many people don't find the car buying experience enjoyable.
It’s funny you said Telluride. Local dealer asked me and I quote “Are you able to come up at all above msrp? Cuz the markup is $15k on tellurides and the most I personally have ever been able to take off is 7k off and to get that was a grind.” I then told him “MSRP and I’m there taking it off your lot tonight.” Which was followed by “Can you even meet me in the middle?”….keep in mind this is after me calling them out that they have the same telluride on the site (with dealership photos) for about 30 days now (along with a decent amount in inventory), me calling out the market etc.
Well, I waited until December and things have gotten worse in regard to new sales where I am at. In fact, I went back to the dealer (RAM) that I was at 4 weeks ago and asked he could do a little better on the vehicle and he told me that they would no longer take a Ford lease, when 4 weeks ago they would allow me to. I also checked at GM dealers and they will not longer accept anything but GM leases (they would entertain my lease 5 weeks ago). I am officially out of the buyers market now. Fords are way too expensive even with a z-plan. There are no longer new trucks available for the middle class.
First mistake, buying a ford 😂😂
I charge the dealers these fees:
1) transportation fee. The gas I spent to get to the lot.
2) grooming fee. Shower, deodorant, clothes and toothpaste.
3) F-U fee. For wasting my time rejecting fake dealer fees.
Hell yeah.
😂😂😂
So many online internet dealers are adding a $595 "Processing fee"
I'm buying a car very soon and I can't wait to showcase my knowledge when buying it. Thank you guys for all that you do 😊
Please take copious notes and post your experiences
Just act like you don’t have any of these tips
How did it go??
Dude, it's not show and tell. They do this everyday. They will make an example out of you to teach you a lesson.
I’ve been doing it and it drives them crazy
Love your passion Ray! Thank you for all the great advice. You and the YAA/Car Edge team are awesome.
Yep, got the “we don’t mark up our cars, the added accessories are things that we consider added value to the vehicle”…uh huh, but I don’t want any of that stuff. Buying the car without stuff I don’t need and which added $1350 to the price is what I consider added value to me!!
Went by dealership in October & again this week. Still had same only 4 cars, but MSRP stickers had been removed & new ones with $5000 increase added. You could clearly see old glue where they had tried to remove old sticker. You haven’t sold those cars in weeks, but you jack price up HIGHER! Don’t know how they keep doors open. Did notice on first visit had showroom with several employees. This time only ONE salesperson & the manager. I’m still waiting to 2023 to see how things shake out.
They know some sucker will buy a car for his wife as a Christmas present.
@@nerychristian I hadn’t thought about that, but you’re probably right!
Love these types of videos Ray! So easy to understand and incredibly helpful👍
Thank you guys!💖
I love these white board breakdowns!!!
Making a playlist so I can go over everything before heading to a dealership in the spring
Thanks for the add ons advice, I noticed a lot of unwanted add ons at dealerships and I'm glad that's something I should and can argue down.
I love these videos I've learned so much from this channel. About to purchase my first car- going to another dealership today . Doing my brush up work before speaking to another salesperson, I feel prepared and ready to beat any hidden fees. Thank you again for all that you all do!!!!!!!
I tried to buy a 16 year old Buick this week.The advertised price was $6900 and dealer would not budge off doc fee of $699. You got to be kidding me !
What that means is the real price of that sixteen year old Buick, was $7,599. Any fee which is included in the taxable amount is a FAKE fee. Those fees are just the selling price separated into different parts. Dealers hope customers will negotiate the price as if it is the actual price and simply pay the FAKE fees on top of that amount thus increasing the dealer's profit.
We just bought a truck in Kentucky at a Ford dealership. Their doc fee is $899.
@@amya9597 here in Michigan my f350 super duty just came from Kentucky had a 2024 built and they want a dock fee of $260 but i was told the firefighter discount and the doc fee would be waived and now my sales men is fared sinse ive was there 5 months ago and the dealer wont honor the 2 discounts any more u think i should just walk !!!!!!!!
One thing that "Pops" should have mentioned with the used car reconditioning cost is that's factored into the delta between the Kelly Blue Book private party vs the dealer trade in prices. So they're definitely double dipping with that one.
Please break this down
My current Chevy: the dealer threw in rubber mats in addition to the standard carpeted mats at no additional charge. I did have them install a factory trailer hitch and supply roof rack crossbars. They did not pack anything into my deal. A pleasant experience. That was in April 2017. If like to buy a Honda Odyssey EX-L. The local dealer is advertising otd pricing that is fair. I may be in contact soon...
I had a dealership try to charge me a Convenience Fee of $450. After asking a few people I discovered it was for the waiting area, the "free popcorn, coffee, and soda" which was offered to me. I politely put a dollar on the table for my soda and asked that they take off that fee -- which they did, and several others that you already mentioned in this video.
😂😂. I laughed because sounds silly but it’s real . 🎩 off you to you 👏🏽
Ain’t no way they tried to charge you for the waiting area “free popcorn and drinks” what’s that gonna do for them? They’re gonna make hundreds times more in car sales than money spent on making their customers experience a bit more better
@@ammarisrar2005 For them it's a potential revenue stream, just like everything else. If someone is paying $50K for a vehicle, what's another $450.00, right? At an average of 200-300 cars per month that's easily about 1.4M in pure profit every year. I'd snap a pick of the original paperwork to show you, but it was 9+ years ago and don't recall where that was filed away.
I love these kinds of videos Ray, please do more like this! These are far more helpful to a consumer than daily trends that ultimately don’t amount to much!
Just helped my partner buy a new CR-V at MSRP yesterday, no extra fees. The window sticker had about $8k in dealer add-ons, but they verbally offered $2k. The sales person said this was a good price. I said we want a great price or we are leaving now without a car. We said a number below MSRP. They asked to explain the price, and for the dealer add-ons, we said you added them and we don't want them, so we won't pay. They agreed to remove the add-on pricing, but wouldn't come below MSRP. We probably could have kept pushing and working with other dealers, but we are tired of shopping. Been doing it for six months. We guess we saved about $12k not buying six months ago. Luckily, we sold the previous vehicle months ago, and got a crazy price for it. This was in the Los Angeles area.
I am still holding out for the used vehicle prices to come down more.
Did they also remove dealer fees, e-fillig etc?
Some tactic that dealers often do to discourage you from walking away is asking for the keys to your current car to value it for trade-in. I learned this the hard way.
Why is that
My dad actually got a car salesman fired because he pulled this stunt.
Crabtree Buick GMC in Bristol Virginia was one of the best dealerships I've ever dealt with concerning fees. Taxes plus $135 to transfer the tags from my trade-in (Skyline Motors in Knoxville tried to hit me with over $700 to transfer), and that was it.... I've found my go-to dealer after months of shopping.
The typical market adjustment here for a '23 Chevy Bolt is about $3k. There are non in stock, so dealers aren't budging. High demand, low supply. I'm guessing the Cadillac Lyric will be somewhere between $8k and $12 market adjustment and dealers will be happy for you to walk away because the next customer will be willing to pay the ransom.
A lot of dealers price their vehicles low, but then make up for it with these fees, the best way to evaluate pricing is to use the OTD price.
I just walked away from a used car deal last night. I wanted to wait but i got a new job so I'm going to be commuting again so i need a non gas guzzler. Shopped online for weeks, found the used car I liked with the options I wanted. Drove 50 miles to the dealer on the other side of the cities, armed with knowledge from this channel and being a car guy. Drove the car, liked it. Found some things that needed addressing. Went inside, he comes back with the menu, out the door price for a car they are advertising for $24,900, was $35,000 and change! I started laughing so hard. He got so mad. "But sir, market adjustment, all dealers are doing it. Uou won't find a better price anywhere, trust me" I proceeded to waste his time arguing for an hour because I'm an engineer and I enjoy arguing, plus he wasted mine making me drive two hours. They wouldn't budget a nickel and insisted I was being unreasonable. Said they weren't running a charity to me. And maybe I'd be better off in an old beater car! 😆
Glad to hear you jerked them around a while before leaving. Nice payback! 😀
Here’s the deal. Some dealers will intentionally advertise an insanely low price to reel you in. Then they’ll tack on the crazy fees. Because of this, you should expect to pay at least some of these fees or else they won’t make a profit.
Thank you very much on all your info it helped me purchase my Jeep Wrangler on Dec 1, 2022, and yes they tried the reconditioned fee and NO I didn’t fall for it, Went elsewhere. Thanks again, Jim’s Drones.
Great video Ray! You are one of the best. The short and precise topic of video, makes it easy to listen many time to have the valuable information sink in. Makes it easier to remember.
Looked at a new Buick Envista that had a $599 protection fee (paint correction whenever needed, interior protection, etc). Asked if they would take it off bc i wouldn't need/want them and dealer said the cars are already delivered with them installed. Asked if i could order from the factory without the protection and they said no. Walked away
Never forgot when a dealer (pre-pandemic btw) offered me their "MVP" price on a vehicle I was shopping for. Of course I asked what "MVP" meant, as I was thinking "most valuable....something". Found out it meant Market Value Price (which was about $2500 above MSRP). I chuckled and walked and purchased elsewhere.
VIN Etch…. Dealers aren’t even etching the glass any more. Sometimes they just put a sticker somewhere on the car with the policy number. Sometimes they don’t even do that. What you are really buying is a bogus insurance policy that gives you a few $$ if the car is stolen and never recovered.
Just ordered an MG4 would not budge of the price of the car, knocked off the paint protection and the upholstery protection.
Love this format of the video. Thank you Ray. More like this please
…I miss the days when I could offer $500 above invoice and I shopped my offer around until I found a dealer that would accept! Usually by 3rd dealer, I had a deal. Now I’m on a 12-14 month waitlist to pay MSRP for what will be a ‘24 Corvette when my allocation comes up at a top 3 Corvette dealer known for NOT playing games. C8’s are $10k above sticker in my area and dealers still aren’t budging…but it is a high demand/low supply car…
It’s always been invoice or below not 500 plus so you were being too nice.
@@XX-166 …my offer of $500 over invoice always included me keeping any rebates and not paying any bogus fees too…I don’t mind the dealer making a small profit, they’re just not gonna rip me off…
@@BandDirector ya never give them any extras that they’ll make on the deal anyway. Invoice is always the starting point and then downward not the other way.
Thank you! I’m so educated now thanks to you and ready to go to the dealer at the end of the month.
Went to a dealership yesterday and they wanted to charge 5000 of dealer add on over the windon sticker price and they just rec'd the vehicle. One if those charges were 899.00 dillars for window tint and the window sticker already had the window tint included in the price. Good thing I was only getting in practice. When I am ready to purchase I will be prepared.
We need you guys in the motorcycle world!!!
My manager tried to get me to sell the extended warranty on used cars we were selling. I wouldn't, so I quit. $300 commission to me and that was 25 years ago
Thank you, so much info that helps me since I am single woman not know the do's and don'ts, this videos have help me so much
Was working with a dealer in New York. Recondition fee 2100. Crazy ppl.o and a mandatory fee of 995 for the lo jack. Bro is a Tesla it doesn't need a LoJack.
Just bought a new Mazda due to add ons from the other dealer. First dealer wanted to TOY..... with the price ($389 government fee, $500 for LoJack, $299 for nitrogen, and $1,000 for interior/exterior protection) and full sticker for the car. Mazda dealer gave me straight price for car and then we did purchase protection for the white seats and extended warranty. The two add ons cost less than the "protection" package from the first dealer.
I might consider paying those ridiculous fees if they were selling the car at the cost they paid from the auction. Since we know a dealer would never sell a car for that price, I will never pay for those additional fees
This man is a hero
It happened to me. I decided to stop communicating with them because they wanted:
Selling price: $22,900
Reconditioning fee: $1,999
Proc/doc: $1,700
And so on...
Long story short, the vehicle went up to $28,840
Ps.
They rose the selling price in December to 28k. Car has 47k miles and has been sinking there for 115 days.
Okeechobee dealer, Florida
I am finding FL dealers are the worst I have ever dealt with before. Do they think we all just moved down here after selling our homes in NY, PA, NJ, or somewhere crazy?
Check out Earl Stewart on Cars for some amusing mystery shopping in Florida. Those mystery shopper reports clearly show what you describe is common in Florida.
It's a racket.
Heck. With #5, I’ve already created a Spreadsheet, for all of my, 27+, Mazda Clubs, in a few countries, that has a list of every Mazda Dealership in those countries. And, as for America, my Spreadsheet like which dealerships are charging “Market Adjustments”, AND, dealer “Add-Ons” as well.
I'd pay NOTHING for dealer add ons, especially if they refused to remove them.
Reconditioning, built it into the price.
Advertising fee, built into the invoice from the factory or into the cost of the used car
Additional destination fee charged for dealer trade
Dealer add-ons, most of it is junk, usually used to show a bigger discount or trade allowance
Market adjustment, you worked at a Honda store, you’re the expert.
You guys are the best!! Thank you for that great information 👍👍
Excellent videos and tips.
I went to check out a certified used Lexus and the salesman presented to me both a reconditioning fee and a destination fee. I told him I'm not paying the reconditioning fee that is your cost. I am certainly not paying a destination fee because there is no fee the car came off a lease and the person who was leasing the car drove it back to the dealer per the carfax report so what destination fee are you talking about. I walked out.
The next day he called me and I didn't want to be bothered so I moved on. Will wait until I find the right deal probably will go with a new car but not in a rush.
It's crap like this that will make me hold on to my car until it no longer moves. I'm sick of just hearing about the games dealers have ramped up these days. I used to buy through buying services or Costco but dealers won't even call you back any longer when they see that in your inquiry to them.
I went to a Dealership in two different towns in Atlanta area and both did exactly the same thing! They were trying to charge me a reconditioning fee on a 2018 Pro-4x and on a 2022 frontier SV! Then a doc fee of almost $1100 which it’s only 545 in Georgia and so now 1 of them is trying to get me to go on a lease of a brand new one. It’s clear neither one wants my business because it’s ridiculous on the prices and they tried to seriously lowball my trade and they tried to combine them and I fought to separate each transaction but they didn’t want to do that. At the end of each time with the dealership I was upset and didn’t even get what I wanted but actually much smarter! I told one that they’ll be hungry for my business in about 2-3 weeks when it’s the end of the year and the vehicles they have are so expensive that they can’t sell them and I’ll go back to see if they’re willing to work for a deal
NEVER pay a doc fee higher than 150.00…. that’s B.S
Ray, you missed your calling. Appreciate your wisdom.
The deal sheet lists a “government fee” of $575 in addition to taxes and a $175 “theft shield” fee. Are these a scam? There’s also a document fee of $549, which is that bad. This is in Tucson AZ. I’ve never seen the government fee separate from taxes before. Thanks!
I was charged extra at kinkos to open the file once. It's like being charged extra to open the hood during a car oil change. Never went back there again.
Love this style of videos..we are here to learn.. you provide so much details and it's simply amazing.. I'm sorry to say this but Zach is not the best listener, he's always cutting you off and just wanna talk..more of just Ray, please.
Add fees used to be paid by the manufacture
May I ask a question?
I'm waiting on a 2023 Accord EX-L hybrid in Canyon River Blue.
Salesperson says it will take a while if I want a Blind Spot system installed. So she suggests a separate company which will charge me $1400 ( 3x more than Honda).
The company in question says to tell the dealership to pay this fee.
1. What do you think of all of this?
2. Do we tell Finance in our meeting and not the salesperson?
Thank you very much
I’ve been trying to get a 10th generation accord and all of them are crazy with their fees. they’ll list it for 23-26k and it’s always 30-32k after fees, I keep my time in besides the test drive less than 15min because most times they’ll say most they can knock off is 500-1000$. I went yesterday and they wanted 31k after a 26k listing and I told them why would I pay that amount when I’ve went to other dealers for a new 2023 civic for literally 31k and they give the most dumb responses. I can’t wait for them to lose money.
Me too it’s crazy .. I’m stuck buying out my lease because the markups are insane . I’m not happy I hope they all lose so much money !
Years ago, my local Ford stored wanted to add an advertising fee. I said the same thing: "that's the cost of you doing business. Why don't you charge me for the popcorn or toilet paper?" Sales-dude glared at me and then removed the fee.
I countered with, You put a sticker advertising your dealership. I charge $1,200 month for that privilege on MY vehicles. Wrote it into my purchase agreement. Same with "doc" fees. I charge a $1,200 fee for filling out the "docs".
Got both taken off.
“CONVENIENCE FEE” IS the munchies and coffee fee. at least that’s what i saw in a different video.
This is why I love you guys!
They marked mine up 2500 above MSRP for "market adjustment" claiming I get pulsing tail light, 1 year paint protection , all weather floor mats and wheel locks. Said that could not be negotiated. The more I thought about it the madder I got. Told them deal was off and I put a stop check/payment order in at my bank. Car had not been delivered to dealer yet and I still had my car. We went round and round and they finally took that 2500 off and re-wrote the contract. I pick my car up tomorrow.
Northern Virginia used to be infested with double destination fee charging dealers. Most have stopped, but there are still a few out there….talked to one today, and he just refused to address it with me. It’s an unethical practice that drives buyers to more honest dealers.
What's the deal with dealership fee? Some charge $175, some $670 or more. And they can't justify what I'm spending my hard earned cash on.
The "deal" is those fees are FAKE. They are just part of the price. Dealers separate the price into the price plus fees. Consider it as part of the price you agree to pay. Do not agree to pay it as a separate item. Just reduce the price by the amount of the FAKE fees.
A lot of these add on fees to me sounds like here say, how do we know if the dealership actually did these things (undercoating, leather protection,this and that etc.)
More than likely they didn't. Maybe they just took it to a drive through car wash where they "add" wax to the water.
Looking for a new 2023 Toyota Prius Prime. Some dealers insist to add the extended warranty and rust proofing, or they won’t take my order, or lower my rank in the waiting list. What can I do except walking away? I have no rush to buy this car, and no need to finance. I think this is my advantage.
Ray, Zach... you're close, but not yet optimal with OTD strategy. OTD price should be an itemized list of all discrete fees. So, DON'T start with sales price, because the "sales price" is still a grouping of discrete fees. If you start the OTD itemization with "sales price" then you run the risk of overlooking a duplicative charges (e.g. "Freight" or "Delivery"). By listing all the MSRP items and the dealer incentive and the remaining OTD items, then you can more easily protect yourself against bogus charges.
Below are two formats of the same deal. Tell me; which OTD itemized list format is easier to spot the double charge on Freight?
OTD (Car Edge v1.0 Style)
Sales Price 50,000
Tags/Title 300
Freight 1,500
Tax (Va) 2,200
Total 54,000
OTD (Optimized)
MSRP 52,000
Floor Mats 250
Roof Rack 400
Freight & Handling 1,350
Dealer Incentive -4,000
Tags/Title 300
Freight 1,500
Tax (Va) 2,200
Total 54,000
599 for tint 399 for nitrogen in tires - give me a break.
Tacoma's have crazy market adjustment these days.
Market adjustments should be a price drop theze days so tell the dealer your willing to offer a couple of grand lower than msrp market adjustment , just because
THANK YOU SO MUCH for posting this!!!!!!!!!!
Love the subject and content for this video. Have already shared it with a friend. Thank you!
For Dealer Add-ons: should the internal price be about 25% of the price they WANT to charge?
In my home state, the dock fee is an optional fee, and not required by law. Because of this, I bring up the actual statute of the law, and refuse to pay the dock fee. The dealership hast to do this work, regardless, as part of their legal obligation to complete a motor vehicle sale, so I’m not going to pay them for work that they legally have to do. I don’t pay for anything outside of the purchase price of the vehicle.
The fees are just part of the for sale price. Just add everything up and assess whether the car is worth it. It’s simple.
Never had to work with a Dealer before I retired 5 years ago. I had a Fleet Contract with Ford for my Trucks & Cars, including Lincoln & Mercury.
Simply went to my Factory Rep to check if there were any added incentives, picked out the Vehicles & Packages we needed and designated a Dealer
for Delivery. Now having to buy our cars direct from Dealers is like a bad dream that recurs every time we replace a Vehicle. They were happy
with the Delivery fee that Ford paid them, but buying a car they own, is a whole different animal. Sadly my favorite Dealer was a Lincoln/Mercury
Dealer where we purchased all our Sedans and later SUV's, went out of Business and the Ford Dealer who probably made 10 of thousands
delivering our trucks, acts like he never knew me! Went from a nice walk, now to a Dentist Chair getting your teeth pulled!
When they can jack up past MSRP and tell you to take a hike if you don't like it, I don't think they care about your dislike for their fees.
They know that eventually, some sucker will walk onto the lot and pay those prices.
Dealers have alway been allowed to jack up the MSRP. The key word in MSRP is SUGGESTED. Dealers care about the buyers dislike of their FAKE fees if they cannot sell the vehicle.
@@scottr2706 Yeah, but the auto industry is probably the only industry that regularly manipulates the price of their products and tries to trick their customers into paying more than they have to by using "fees".
Sure, if they smell that you're desperate to buy the car you're looking at.
There's cost of goods sold and cost of doing business. The second is built into the first.
$6000 markup over MSRP here in the Seattle area on the Kia Telluride. Love that vehicle, but hell no.
Most if not all the dealers I am seeing have an expensive destination fee on new vehicles in Central FL
That "Fight 'em with every fiber of your body!" line could prep me for a war, cuz that's basically what it feels like going into a dealership haha
About point number 3:
If you're buying a new car, there will always be a "destination charge". It is typically north of a thousand dollars and is not negotiable. Trying to haggle with the dealer over this will get you kicked out of the dealership.
Manufacturers charge that to the dealership to transport the cars from the factory to the dealership, who then forwards that cost to you. It is a legitimate expense that a dealer shouldn't have to pay for.
What you should avoid is any other "destination fees" on top of that. Especially for used cars - those should never have any destination fees at all, because the transportation of a used car is paid for by the dealer and therefore already included in the selling price.
Looked at a Ford F350. Dealer had tacked on an additional $5K, just because. Needless to say. I walked away. And had a Chevy dealer tell me they would have to charge over MSRP on a Silverado 1500. Not happening.
Question: Is buying a car in Virginia that includes an 899$ processing fee acceptable in your opinion? Thanks.
How about a market adjustment in my favor since the dealers new car inventory is now over flowing the paved lot onto grassey areas of dealers property? Probably a violation of city code.
I was told by one dealership that the bank I was going to finance through was actually charging the dealership 4K just to sell me the vehicle. What is up with that? He said they just couldn't eat the 4K so I excused myself and let them know neither was I. This seems it should be illegal.
It is
I’ve been burned by the window etching in the past and it still bothers me.
I nominate #6: Document fees. They want me to pay $500 or $1000 for a half hour of paperwork? A lot of people seem to accept this but I think doing the paperwork is a cost of doing business, therefore doc fees are nothing but a cash grab. No thanks.
You are 100 percent correct. Those doc fees are FAKE, period. YAA used to say the same thing, doc fees are FAKE. Sadly, like many of these on line experts they have gone over to the dark side regarding the FAKE doc fees. The preparation of documents is just a dealer cost. No different than any other dealer cost such as rent, building insurance, wages, office supplies, etc. Price, by definition, includes ALL dealer costs to do business. All dealer costs include the very, very minor cost associated with documents.
Agree. I was at a Subaru dealer could get all the fees waived except doc fee of $700. They wouldn’t split it. Said for taxes purposes they can’t charge me $350 and everyone else $700 the only way they could cover it was by taking it off the “price” which apparently I already got them to their lowest price. Literally left dealer because we were $350 short of making the deal. Crazy to think they would let customers just walk over a few hundred bucks
@@Robbie10888 There is no law in any state which requires a car dealer to charge a doc fee. That is always the decision by the dealer.
The reason dealers have to show the doc fee at the same amount for every customer is due to advice from their attorneys. This is to ensure the dealer does not get sued.
But that does not mean they actually charge the fee to every customer. They will often lower the price or raise the trade value if the customer balks.
The last vehicle I purchased was BMW. We negotiated the price when the sales person pulled up the numbers on his computer. There is was, a $300 doc fee.
I said no, knowing full well the dealer was not going to lose a $60K sale over the doc fee. The sales person quickly darted into the sales manager's office with a revised offer which raised the agreed upon trade value by $300.
@@scottr2706 makes sense so they take the price off the car.
I was just at a Volvo dealer looking at a used 2020 S60 with 19k miles on it. They originally wanted $32k but since it was listed for 55 days they keep lowering it. Yesterday it was priced at $27,444. I offered $26k with no $699 prep fee. They came back at $26,444 with no prep fee but they would have charged a $799 dealer doc fee and they said that was the best they could do. So we walked.
I am not sure if Volvo just aren't that much in demand or what overall nice car. I am sure 3-6 months ago that car would have been sold for $32k within a week. Also saw Subaru legacy 2020 with 5k miles on it priced at $25,704 they came down $1,000 and that was sitting on their lot for 45 days. I passed on that deal.
It seems to me the car market is changing. more supply less demand. Also interest rates being so high is not making cars affordable. I have an 800 credit score and the best I can get on a 4 year car loan is 5.24% from a credit union. Also since trade in values went way down I don't see too many people trading their car in to buying a new car.
Obviously dealers will pull the chip shortage and used car are extremely low in supply and they will try to keep prices high but are willing to neg to make a deal.
I am in no rush to buy a car. I sold my 08 Accord privately in June. My wife and I both work remotely so don't really need 2 cars. I'll see what the end of Dec brings but if not ill just wait to not year for more to drop then hopefully by then I'll have enough saved up to pay cash instead of taking out a car loan.
You can use the acronym “D.R.A.M.A.” as a reminder
Dealer add in’s
Reconditioning fee
Advertising fee
Market adjustment
Additional destination Fee.
NO D.R.A.M.A.!
🙂
Thanks for educating us consumers, knowledge is power over these bandits in suits and smiles
If I am offered a very low interest rate or a certain amount off up front, which should I take?
Thank you again like always for the great advise!!!! You keep posting great videos!!
Good stuff 👍 Ray, you are the star of this show.
I bought a new truck that was still in route to the dealership. They tried to add a $2500 desert package (window tint, door edging, etc.). Salesman said they put that on every car. I responded that it's not on this one yet, so they can leave it off. They got rid of it and we made the deal.
So what fees should I pay? I mean what fees are legit and non-negotiable?
I think only the fees that are required by the State, like taxes. Or maybe if there are other options you selected, like an extended warranty or ceramic coating.
If the fee is taxable it's negotiable.
Great advice but dealership in Houston, TX refuse to remove dealer installed equipment even on new vehicle orders. Also I did not get any response on your YAA community post 🙁
Just ordered a 2023 Civic Sport, MSRP + $599 for window tint. Car being built, should be in by mid January.Not given the out the door price. Tax, tags, and documentation fee not included yet. Any advice? Thanks
Have it all itemized.
I visited a Honda dealer the the used car MSRP was 19k for a certified vehicle and the wanted me to pay $799 Recon, Doc fee of 699, 2600 for the CPO, title and registration 399. They would not budge on anything. I declined the sale and said thank you went to the restroom. My significant other was waiting for me to return and the sale manager stated the $2600 was optional. Which didn’t make sense taking away the certification is an add on? Again said thank you and walked out,
What about the stupid add-ons for new cars? Items such as floor mats, first aid kit, cargo net, etc. these are things that could easily be removed, and most of the time are simply sitting in the trunk of the car. I had a salesperson tell me they couldn’t remove these items because it was illegal to do so since they were on the sticker,
Does dealer convenience fee mean the same thing as recondition fee . Thank you