What is a " Dealer Fee" Charged For?

Why is that? Comparing out-of-pocket costs for going to the doctor versus taking your Ferrari in for service, which is worse?

 

We bought my mom's Mercedes from a local high end used car lot....we agreed on a price. When he showed me the amount owed on the paper work...it included a doc fee. I told him we agreed on a price....if he can't keep it....I'm not buying the car. I don't like it when people go up on a price after a handshake. He took the doc fee off.

Those new car dealerships are going to get their money either way. Why they have to advertise they're stickin' it to a customer has always been beyond my comprehension.

 

Did they take the documentation fee off? That would not happen in Illinois. Why? It would set a precedent.

 

This is awesome!

 

Right.

Anyway, a few people have mentioned that the dealers are charging for "helium" in the tires.
I've only seen nitrogen.

 

Yes, he took it off. This guy has some nice stuff and I'd bought from him in the past. It was a precedent I wanted to set. Don't say one thing and try another.

 

Incorrect. See post #14. It was a JOKE.

 

Even if not racing, nitrogen definitely maintains the pressure in your tires much longer than just air (i hardly ever have to add nitrogen to the tires of my cars with nitrogen in the tires compared to the carts that just have air - I have a nitrogen tank in my garage - lasts forever).

Howard

 

I used to think that... but to be honest... I like it now. My parents drive from there house in arizona to their house in california. In the summer when they leave it can be as hot as 115 degrees plus road temp is much much over that. Over night in San Diego it can get down to 60 degree. Almost a 60 degree difference.

So the next day when they start there car... the tire lights would come on and they would call me and tell me they have flat tires... I would then have to explain they just needed air in their tire yada yada yada... pain in the ass... how much air? where do we go etc... etc... etc...

We bought a car and the dealer put nitrogen in the tires already... and guess what... they haven't called me about low tires.

SOLD. LOL

 

Because it would set a legal precedent, this would NEVER happen in Illinois.

 

Also, a reasonable doc fee I think is totally justified. I charge 199 for a doc fee. It allows me to continue to provide great customer service.

From that fee collection I do the following:
I use a 3rd party DMV service that is faster than the traditional DMV so customers get perfected titles quicker.
I overnight fedex your title to you. (Not cheap)
If something comes up and you have additional paperwork your state requires for registration I also overnight that to you. (It happens)
If you are financing and i need to overnight something to your bank...
Or maybe you just ask for some touch up paint etc... or if the truck driver stained your floor mats... guess what... I have a little bit of that to pull from. It makes it easy to just say yes... no problem... we will take care of it... etc...

I think an 800 doc fee is absolutely ridiculous but 0 has consequences too.

 

exactly what dealers often do is reduce the selling fee the same amount as the doc fee but the doc fee line remains.

 

My Ferrari mechanic has never sent me a bill 6 months later for something when I thought we had already paid for everything and settled the bill.

Also, in my experience with doctors (somewhat limited) I never get an estimate or quote for the work performed. Its just we are doing it and the lady by the front door will collect some money... and then your insurance company sends you a bill... and then 6 months later the doctor sends you another bill... and then 60 days from there you get a lab bill... its a joke.

 

The so-called "Dealer fee" or more commonly "document fee" is total BS of course. Its just a fee they try to get from every customer. Many customers call BS on it and stand their ground. Many do not and "ding" the dealer makes more profit.

I've had to say "no deal" with that fee virtually every time I've bought a car. Sometimes they say "we have to charge it" or they outright lie and say "its a government law/fee". Regardless of what greedy lie they state, I simply say "whatever, I'm not paying it. If you want to lose the deal over it, fine. If you want to charge it, then lower the price of the car by the same amount".

This is yet another reason why car dealers have the reputation they have well earned.

 

Doc fee in Texas is set by the dealer as noted in a very obvious disclosure box right next to the total of the transaction (You have to use DMV approved forms). Same disclaimer is suppose to be posted next to licenses. The fee can be up to $125, above that amount you have to explain to the DMV why you are charging extra. For most dealers, it is pure profit if you consider their overhead cost is already included in the final sale price...that said, if you need plates mailed out and docs overnighted vs. having to drive back and forth to the dealer I think it is ok if I get prompt and responsive service.