Documentation Fee for new car seems too high.

[ironk]

well, what can we do? There are no laws here in MA about this, so rape is what we get. Even if there were laws, i still think the dealer will rape you in the invoice somehow. They almost always get you someway (giving you less for your trade-in, give you some rediculous financing, lying about the invoice price, etc). I think the important thing is that you do your research, and at least shop everywhere for prices to have an idea. Just don't pay 16,000 for a 14,000 car, including all the fees.

 

[RiverDog]

Ten years selling cars, doc fee are pure and simple rip offs. How can they sell you a car and NOT do documents? The notary fees are set by the state. Some dealers charge $0 and some up to $100. Have them show you the section of the law that requires them, they can't. Some dealers used to charge a ADP fee as well. (ADP = Additional Dealer Profit )

 

[ironk]

Alright, I have the agreement, and its clearer now (well, a little):

Versa 4DR 1.8S Sedan
w/Power Package (windows, doors, locks)+ABS brakes

$14,000 - Invoice Price ($500 rebate taken out already from this amont).
$249 - Doc fee
$195 - Sales Agent Fee
$100 - Title, registration Fee
$700 - Tax 5% MA
====
Total: 15,244

Sales Agent Fee + Doc Fee = $444 (the number i mentioned in the beginning of the thread).

 

[RiverDog]

Originally posted by: ironk
Alright, I have the agreement, and its clearer now (well, a little):

Versa 4DR 1.8S Sedan
w/Power Package (windows, doors, locks)+ABS brakes

$14,000 - Invoice Price ($500 rebate taken out already from this amont).
$249 - Doc fee
$195 - Sales Agent Fee
$100 - Title, registration Fee
$700 - Tax 5% MA
====
Total: 15,244

Sales Agent Fee + Doc Fee = $444 (the number i mentioned in the beginning of the thread).[/

Exactly what is a "sales agent fee", doesn't the dealer pay the comission to his salesmen? and what does the "doc fee" give you? You are being ripped off. If this is really the invoice price then will he show you the invoice, and what about the holdback? You know how to tell if a dealer is lying... his mouth moves.

 

[ironk]

they showed the invoice at $14500. And I don't think they are ever going to tell you about the holdback or any factory to dealer incentives. Just doesn't happen.

 

[RiverDog]

Originally posted by: ironk
they showed the invoice at $14500. And I don't think they are ever going to tell you about the holdback or any factory to dealer incentives. Just doesn't happen.

You're right on that part. We almost never got into the holdback but don't let them pull the other crap, If they want a $50 doc fee, live with it, but refuse to be raped on the other stuff. Contact dealers in a 100 mile area and offer them $300 over invoice plus normal tax and title fees. tell them they get one shot and buy the cheapest. I've had people do this and it works. Your over $400 saving will let you shop a larger distance. EVERY dealer has to do the warranty service so don't let them play that game on you.

 

[hydroponik]

I would read all the chapters on this site before going ahead w/ your purchase:

http://carbuyingtips.com/

 

[compuwiz1]

The holdback is dealer's money that trickles in down the road, at certain intervals. They do not have to give it to you and almost never will. As a general rule, the only time the hold back is dipped into is in fleet sales.

 

[RiverDog]

<div class="FTQUOTE"><begin quote>Originally posted by: compuwiz1
The holdback is dealer's money that trickles in down the road, at certain intervals. They do not have to give it to you and almost never will. As a general rule, the only time the hold back is dipped into is in fleet sales.</end quote></div>


Holdback is very seldom used as you say. Unless there is a big movation to make a sale. I spent 10 years in the business the last few as a fleet/leasing manager and again hardly ever used it. But it is up to the dealer and one of the bargaining tools is to let them know that you are aware of the holdback. Normally this defrays the intrest paid on the floor planning ( yes all the dealer's cars that you see on the lot have been financed and accumulate intrest monthly) so if a car comes in and sells right away that's extra profit. AFAIR I think there was a small qrace period for the intrest so the holdback can be eat up pretty quick. There is also a charge to the dealer for advertising that never shows up on the "invoice price". It used to be around $250 for Ford, and Chrysler was similar. That helps to pay for all those anoying ad's that you see and hear. Don't get me wrong, the dealer HAS to make a profit, but when I see these excessive fees, that's not right. At least have the balls to say "I want $XXX profit on this vehicle"