Thursday, March 27, 2008

Useless Dealer fees? Are they legit?

So dealers charge many little fees. I'm sure most of us have been to dealerships before and after the "negotiating" process, were surprised to find that there were some more fees tacked on at the end! Today we'll discuss those little fee's and whether or not their legit and what they are used for.

Doc (documentary fees) - Every dealer charges a documentary fee. The fee is associated with the cost of forms and documents, handling and obtaining motor vehicle, and to pad the dealers profit as well. A typical documentary fee will run anywhere from $99 on the LOW side, all the way up to $500. Maybe more. Most dealers will be in the $149-299 range. Anything more should be justified, and hopefully have a valiant excuse as to why the fee is so high. You may even try to haggle with this fee, but don't expect to get very far.

Window Etching - At 90% of dealers, window etching is a joke. It costs less than $15 per car for the actual etching, and another $50 to register the actual etch number. Most dealers will charge $249 for the window etching, and most of the time don't actually pay the fee to implement the contract.

Extended warranties - Ones that are offered and truly backed by the manufacturer are the best ones to go for. These are good at any dealership in the continental United States. They are worth it if the dealer will discount a little off the MSRP. they are transferable, and most of the time you can extend the bumper to bumper warranty for up to 100,000 and possibly 10 years. Especially on todays new more technologically advanced vehicle, it makes sense. Average navigation systems will cost approximately $1500 or more depending on the manufacturer. They are definitely worth the second glance.

Dealers offer pin-striping, simonize applications, and other packages that will earn more profit for the dealership. For instance, a roll of pinstripe costs about $10. Dealers will charge $195. All these packages do something, but create much profit for the dealership.

Be careful of the games dealers may play. Note that these fees are normal and be prepared for them!

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