How much is a reasonable dealer documentation fee?

[MadScientist]

After an extensive internet price search, I purchased for cash a used 2009 certified pre-owned Nissan Versa SL HB from a Nissan dealer this week. Along with tax, tiltle, and registration fees, they charged me a $125. documentation fee, which I thought was a bit excessive. They said this was totally non-negotiable, even after I offered to go to the local DMV and do the doc work myself.

Some states, i.e., Texas & NJ, have doc fee caps of $50 - $200.
I realize that this is just another way for a dealer to pad the bottom profit line and I don't mind paying them a reasonable fee, i.e. $50., to do the doc work.

 

[Mermaidman]

Just think of such fees as part of the vehicle's price. e.g. If the fee was $125 as in your case, then reduce your offer by the same amount.

 

[Zenmervolt]

The "Documentation Fee" is 100% pure profit for the dealership. It's just one more way for a dealership to artificially lower the apparent price of the vehicle. WA used to have a maximum of $50, but the Beloved Leader of the People's Republic of Washington State recently signed a bill to up this to $150, though the legislation does require that it be listed as a 100% negotiable item.

While a particular dealership may not be willing to negotiate on it, the fact is that the fee is not legally required and any refusal to negotiate is the dealer's decision, not a state law decision.

Personally, I build the "Document Fee" into my price negotiations from the start and simply negotiate for an "out the door" price. They meet it (or come within a reasonable amount if I'm trying to lowball), or I walk. And I have walked.

ZV

 

[TraumaRN]

Simple, go to a dealership that doesn't charge documentation fees. My local Ford dealer doesn't charge them...hell they even got my new plates/tags on the house for me.

That might be tough to find but...otherwise just use it as a I want 125 off the price of my car kinda thing.

 

[MadScientist]

Simple, go to a dealership that doesn't charge documentation fees. My local Ford dealer doesn't charge them...hell they even got my new plates/tags on the house for me.

That might be tough to find but...otherwise just use it as a I want 125 off the price of my car kinda thing.

Today, with the recession hitting the car industry hard, it's probably imposssible to find a dealer that doesn't try to stick you with some extra fees. From what I've read it's getting worse, since car manufacturers are narrowing dealer profit margins.

Yes, I did use the $125. doc fee as a bargaining tool on the total price of the car. Most dealerships wait until they get you to the finance manager before they spring the extra fees on you. Demand that the salesperson gives you the total "out the door" price before you settle on a price. If he/she will not, walk.

My car was Nissan pre-certified, which means it comes with a 84 month/100,000 mile warranty, but the finance manager still tried to sell me an extended warranty insisting it wasn't pre-certified, until I showed him their internet ad stating it was.

Here's a few helpful sites on what fees you should pay:

The list of state fees are as of 10-08 and may have since changed. Click on your state's department of transportation link to get the latest fees.
Some states' sales tax differs from their car tax, i.e., in WV the sales tax is 6% and the car (they call it a priviledge tax) tax is 5%; and besides registration fees, most states also have title fees.

http://www.edmunds.com/advice/buying/articles/117494/article.html

http://www.carbuyingtips.com/car3.htm

You've probably heard or read it already. Before you buy either a new or used car, research, research, research.
Gather all your info in a folder and bring the folder with you to the dealer. The folder sends a signal to the car salesperson that you are prepared to do battle.

Also read these 2 articles. It's a look from the other side.
http://www.edmunds.com/advice/buying/articles/42962/article.html

http://www.edmunds.com/advice/buying/articles/125308/article.html

 

[woodie1]

Just think of such fees as part of the vehicle's price. e.g. If the fee was $125 as in your case, then reduce your offer by the same amount.

This!

 

[yh125d]

I spent all my morning at work reading those articles

 

[exar333]

$0.00 net cost to you.

 

[HannibalX]

Zero.

 

[MadScientist]

$0.00 net cost to you.

Yes, this is what every car buyer should try for in negotiating the "out the door price", but with most dealers today I think this may be unrealistic. If you think you have gotten a great deal, then I still think that a $50. or less dealer doc fee is not unreasonable.

Here's Consumerreports take on fees:
http://www.consumerreports.org/content/news/wheeling/worksheets/fees_fair.html

 

[DVad3r]

This is easy. When you buy the car, and the fee get's added on, you just don't pay. How? You stand there with your certified check for the sum of the car that you got from your bank, and say:

"I'm not paying for the fee, sorry, if you want to make a deal this is the check in my hand, if not, Ill walk out and find someone that gives me a better deal"

Then, you observe the sale guys frustration, but watch him cave into your end of the bargain.

 

[MadScientist]

This is easy. When you buy the car, and the fee get's added on, you just don't pay. How? You stand there with your certified check for the sum of the car that you got from your bank, and say:

"I'm not paying for the fee, sorry, if you want to make a deal this is the check in my hand, if not, Ill walk out and find someone that gives me a better deal"

Then, you observe the sale guys frustration, but watch him cave into your end of the bargain.

This is exactly what everyone in this thread is saying not to do. Negotiate the ''THE TOTAL OUT THE DOOR PRICE FIRST" with the salesperson/sales manager, get it in writing and signed, so when you are then turned over to the finance officer there are no surprise fees.