What is a " Dealer Fee" Charged For?

Discussion in 'Ferrari Discussion (not model specific)' started by Feather, Jul 26, 2017.

  1. Feather

    Feather Rookie

    Jul 26, 2017
    Can anyone advise me what a " Dealers Fee" is for on s new car?

    Just another route to make money?
  2. blackbolt22

    blackbolt22 F1 Veteran
    Silver Subscribed

    Sep 25, 2007
    Boca, FL
    Full Name:
    Mr. Anderson
    Yes. Absolutely extra profit for the dealer.

    Do you notice a "shop supplies" charge on your service invoices? Mechanics started that one to up their profits about 15-20 years ago. Burns my ass up.

    Perhaps I should charge my patients for the drops, tissues, paper towels, alcohol swabs I use during their exam. Hell why not just charge them for the Rx pads as well?
  3. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

    Dec 4, 2004
    I never understood why people do that in the billing rather than lumping it into the pricing? Why make the nickel and diming so obvious to the customer? Is it to make the prices falsely low when advertised to get people in then tack it on?
  4. TheMayor

    TheMayor Seven Time F1 World Champ
    Rossa Subscribed

    Feb 11, 2008
    Vegas baby
    I went to look at the first Alfa Guilas that arrived at my dealer. He claimed they were selling them at "MSRP".

    So I look at the sticker and it loaded with stupid "dealer options" that no one would want, including nitrogen in the tires for like $500. All in all, about 3 grand added -- but it was still MSRP!

    What a rip off.
  5. tifoso2728

    tifoso2728 F1 Veteran

    Apr 30, 2014
    Full Name:
    In Illinois, they are "documentary fees". They are about $175.00 and they are on EVERY new and used vehicle from any dealer. Do you want to hear the best part? They are taxable!
  6. BarryK

    BarryK Formula Junior

    Dec 17, 2016
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    Barry K
    Have you asked the dealer? It varies from document fees to straightforward profiteering.
  7. Enzojr

    Enzojr F1 World Champ
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    Dec 12, 2013
    West of PDX
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    Used to be listed as ;)
    Additional dealer profit, guess that got old quick.
  8. Enzojr

    Enzojr F1 World Champ
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    Dec 12, 2013
    West of PDX
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    Got forbid you let the air out of all 4 tires and demand a $500 discount ;)
  9. dm_n_stuff

    dm_n_stuff Global Moderator
    Global Moderator Owner Lifetime Rossa

    Dec 10, 2003
    The Sunshine State
    Full Name:
    Florida is the king in this category.

    $600 is pretty standard for the "Dealer Fee"

    However, when you push, they'll shave it down to about $175.00, and you think you're getting a deal.

    Last time I leased a car, it had about $2K in dealer junk added, including the dreaded nitrogen in the tires fee of about $200.

    I told them to take it out of the tires and put regular air in. They told me the $200 included filling the tires for life when the pressure needed adjusting. I reminded them that nitrogen is much less likely to need adjusting. Eventually we settle on $50 for that.

    Pin stripes, window tint, they even tried to charge for a tank of gas. Told them to leave it empty.

    I hate dealer fees that are BS, and there are a lot of them. The local Ford guy I lease from understands me now and just strips out the BS on the car price before we even get started.

  10. Marcel Massini

    Marcel Massini F1 World Champ

    Mar 2, 2005
    The "dealer fee" in Switzerland is Swiss Francs 1'000 (=US$ 1'100, one thousand one hundred).

    Marcel Massini
  11. Marcel Massini

    Marcel Massini F1 World Champ

    Mar 2, 2005
    We had that about fifteen years ago already in Switzerland, a complete joke.

    Marcel Massini
  12. thorn

    thorn Formula 3
    Silver Subscribed

    Aug 7, 2012
    Tallahassee, FL
    Cool. Because I love making an appointment at the dealer and driving across town to add a bit of air to my tires, instead of going to the gas station 3 blocks away.
  13. mcg

    mcg Formula Junior
    Silver Subscribed

    Jul 26, 2004
    Full Name:
    The Documentary Fee was explained to me by a salesman as contributing to the Dealer Principal's 401(k) Plan.
  14. energy88

    energy88 F1 Veteran
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    Jan 21, 2012
    Fredericksburg, VA & Sarasota, FL
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    I guess the joke could be taken one step further. How about Helium filled tires to make a car "lighter" and better handling?
  15. Alden

    Alden F1 Rookie
    Rossa Subscribed Owner

    Apr 25, 2010
    Central Florida
    The earth's atmosphere is 85% Nitrogen anyway. Unless you are racing, nitrogen filled tires are a joke and a rip-off.
  16. Jack-the-lad

    Jack-the-lad Three Time F1 World Champ
    Silver Subscribed

    Jun 22, 2004
    Isle of Luci
    Full Name:
    And dealers wonder why they have a crap reputation.....On second thought they don't wonder about it. They don't think about it at all.
  17. dwhite

    dwhite F1 Rookie

    #17 dwhite, Jul 30, 2017
    Last edited: Jul 30, 2017
    Of course you charge your patients for these things, you just don't itemize them on the bill. Never saw a business not incorporate operating expenses into their costs for running a business.

    I'm sure you also don't deduct them from your revenue to figure your profits and taxable income.
  18. dm_n_stuff

    dm_n_stuff Global Moderator
    Global Moderator Owner Lifetime Rossa

    Dec 10, 2003
    The Sunshine State
    Full Name:
    I asked if he'd come to the house if I had a flat and fill it up.

    Sales guy said, "Nope."

    So did I. :D

  19. Nospinzone

    Nospinzone F1 Rookie

    Jul 1, 2013
    Full Name:
    It's all a matter of supply and demand. If the car is in enough demand they will tack on as much as they can. If the reverse is the case, you can get them down until they say "uncle". :)
  20. JCR

    JCR F1 Veteran
    Silver Subscribed

    Mar 14, 2005
    H-Town, Tejas
    It is actually, "By volume, dry air contains 78.09% nitrogen, 20.95% oxygen, 0.93% argon, 0.04% carbon dioxide, and small amounts of other gases. Air also contains a variable amount of water vapor, on average around 1% at sea level, and 0.4% over the entire atmosphere."
  21. Stentboy

    Stentboy Formula 3
    Silver Subscribed Owner

    May 8, 2008
    Full Name:
    They're just blissfully ignorant of such things. Ever ask a doctor what a test or procedure costs? They will look at you like a deer looks at the front of the car right before it is struck.
  22. cls

    cls Formula 3
    Silver Subscribed

    Jun 12, 2007
    Los Angeles/Montreal
    Full Name:
    When I was a contractor and told the client it would be $1200 for a door installed, they would balk. But if I quoted them $600 for the door, $100 for removal and hauling of old door, $100 for framing alterations, $150 for moulding, and $250 for install all was well.
    It just depends on your type of business and the perceived value of your goods and service.
  23. BT

    BT F1 World Champ

    Mar 21, 2005
    FL / GA
    Full Name:
    Bill Tracy
    A doctor complaining about car service pricing? That's rich!
  24. dwhite

    dwhite F1 Rookie

    My granfather was an MD in rural PA and helped with establishing Geisinger Medical Center. I think he took a couple chickens and a loaf of bread as payment for service back in the 30s & 40s, my how times have changed.
  25. amenasce

    amenasce Two Time F1 World Champ
    Silver Subscribed

    Oct 17, 2001
    Paris / Chicago
    Full Name:
    Andrew Menasce
    It's not just demand. It's people not knowing what it is and just thinking it is an actual expense or work provided by the dealer.

    They call it administrative fee here. I have even seen it on used cars dealers. It is as if you went to whole foods and saw a stocking fee because they have to pay employees to actually put the food on the shelf.

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