VA Processing Fee? Watch out...

Nothing new, they have been doing it since I can remember.

 

Maryland has a $100 processing fee, though I don't believe it's state law. Just something to give the dealers more profit.

 

Yep, just bought a car last week and there was a $100 processing fee on the invoice, but it states that it is not required by law...

 

When I bought my Land Rover Discovery a few years ago form a dealer in VA, they also told me about the "processing fee." They also "advised" me that I could reject it, which I did.

 

Processing fee is not required by the state, its strictly a dealer add-on.

 

Involving several purchases I've made: We reach a price and then they add the fee. I get up and walk and they delete it. I did have one with a Mercedes that they said they couldn't legally delete the fee. I walked and they called the next day. They ended up deleting the fee and tacking on an extended warranty for my troubles.

 

wow... that's good to know that you can actually argue that fee and get it removed! I haven't bought a car in VA in a long time... always out of state but good to know!

 

The "fee" is called a DOC fee in most states. It is not "required" by law, but it is instituted by every dealership that is in a state that "allows" it (some states it is illegal). The purpose of the "fee" is, depending on what metric you use to measure it, profit and/or used to supplement the processing of your paperwork as some dealerships do not have an inhouse tag and title person, and they have to pay a "runner" to process your registration.

When they say it is "illegal" to delete it, they are not correct but what they mean to say is that they "cannot" delete it as it is pre printed on the bill of sale/buyer's/purchase order and if they took it off, they could be sued. What they do from here is discount the price of the car the amount of the DOC fee to accrue properly. It has become a point of negotiation. I can assure you, with the way it is accrued internally, if you negotiate your best deal and you are really beating the house, they will walk from the deal. It has become a form of "holdback" by the dealers principal owners. Not a huge deal at a Exotic highline store that usually needs it to supplement for the runner that takes care of tag and title, but at the big stores (vis. a Honda franchise) that do north of 100+ units a month at $399 a copy, and you see where that is going...

Since the dealers, in most states, cannot legally allow you to do your own tag and title they utilize this fee to absorb what they would normally lose from profit.

 

I think most people don't even notice the Maryland $100 fee. The paperwork just gets signed. As for the $399 fee...I would definitely notice that.

 

I worked at a dealer and you would think that this processing fee was the only way they made money- Towed a hard line on it.
Being a small dealer- the fee was allocated to the woman who ran all of our DMV work.
Most of your larger dealers are online with the DMV (VA) which makes the processing a lot easier- I think it depends on the dealer but in some cases it isn't a profit center as much as a means to offset the staffing? There is a ridiculous amount of paperwork and filing and ..... Make any sense? In the case of charging over $100.00 - thats when I think it is getting greedy and I agree with the above sentiment.

 

I am pleased to say, in all my life, I have NEVER paid a dealer processing fee.



I have bought cars in Maryland and Virginia and never paid this "add on" to a dealer - came close to being "forced" to pay. When the dealer said if I didn't pay, they could be sued for unfair business practices. Whatever.

In the end, on the last deal, they wanted $250.00 for the processing fee. No thanks, I'll walk... Bbbbuuuuutttttt..... Waiiittttt..... I imagine they took another $250.00 off the price of the car, call it what they want... I call it BS!