All the dealers here in Arizona charge $399. How can I avoid paying that much for paperwork that takes 15 minutes? Thanks guys
Document Fee
- Thread starter bobbob
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You can't. It will always be on the paperwork.
Negotiate on the final "out the door price" and it becomes irrelevant what the dealer puts in, as long as the final price does not change.
Originally Posted By: KrisZ
Negotiate on the final "out the door price" and it becomes irrelevant what the dealer puts in, as long as the final price does not change.
+1 The only way to negotiate is the out the door price.
Negotiate on the final "out the door price" and it becomes irrelevant what the dealer puts in, as long as the final price does not change.
+1 The only way to negotiate is the out the door price.
Kestas
Staff member
Where does that money for the document fee eventually go?
Originally Posted By: Kestas
Where does that money for the document fee eventually go?
Into the dealer's pocket.
Where does that money for the document fee eventually go?
Into the dealer's pocket.
Originally Posted By: grampi
I just purchased a vehicle and I noticed they added the document fee in as a taxable amount. Why am I paying sales tax for a document fee? That should not be taxable...
It depends on the state law whether or not it is taxable, and how it is taxable. Most treat it as services rendered during the purchase of the vehicle, so it can either be taxed as part of the purchase or separately.
In my state, tax on the purchase of a vehicle is only 3%, whereas sales tax is 7%.
I just purchased a vehicle and I noticed they added the document fee in as a taxable amount. Why am I paying sales tax for a document fee? That should not be taxable...
It depends on the state law whether or not it is taxable, and how it is taxable. Most treat it as services rendered during the purchase of the vehicle, so it can either be taxed as part of the purchase or separately.
In my state, tax on the purchase of a vehicle is only 3%, whereas sales tax is 7%.
Originally Posted By: demarpaint
Originally Posted By: KrisZ
Negotiate on the final "out the door price" and it becomes irrelevant what the dealer puts in, as long as the final price does not change.
+1 The only way to negotiate is the out the door price.
+2, that's how my dad always did it. Plus it usually keeps things at a nice even number.
Originally Posted By: KrisZ
Negotiate on the final "out the door price" and it becomes irrelevant what the dealer puts in, as long as the final price does not change.
+1 The only way to negotiate is the out the door price.
+2, that's how my dad always did it. Plus it usually keeps things at a nice even number.
Just looked at a used car for the son last Saturday. Negotiated an out the door price and when we went to write the check they added $511 to the total for documentation fees. We walked away. Glade we did. Went to the next town found the same exact car that was 2 years newer, less miles and way better shape for less $$$. Their out the door price was exactly what they told us! The dealer we walked away from called us 2 days later. Had to laugh at them...
I negotiated an out the door price on a new Accord. I called the day I was supposed to pick it up and the salesman said oh no it's that price PLUS sales tax which was an extra $900. Told him no thank you and kept driving the Civic I had for a few more months till I struck a better deal at another dealer.
I just work on the final number OTD if I am buying and the total of all of the lease payments and mileage if leasing. My last lease I calculated my final deal on my phone....the sales guy wanted $219/month and I offered him $10...we went back and forth for 2 hours and settled at $45. Afterwards he asked me where I got "those numbers"....I showed him my phone and said "Your dealership website"
You know you got a decent deal when they hand you the keys and ask you to leave.
They had 95 cars sitting there....all lined up...I had to take a golf cart to ride to the one I bought
You know you got a decent deal when they hand you the keys and ask you to leave.
They had 95 cars sitting there....all lined up...I had to take a golf cart to ride to the one I bought
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Originally Posted By: RhondaHonda
Originally Posted By: Kestas
Where does that money for the document fee eventually go?
Into the dealer's pocket.
Into the dealership owners pocket, usually. The dealer fee is both a way to tack on extras to the price and it screws over the sales person. A sales person's commission is usually a % of the profit on the sale, so the dealer adds in a 'fee' that gets taken off a the top.
For example, a 20K car costs the dealer 19K with 1K profit. Salesperson makes 25% of profit, so $250 commission, dealer gets $750.
Next example, 19.5K car with a $500 dealer 'fee'(same cost in the end). Dealer takes $500 off the top, salesperson makes 25% of 500 (profit) = $125. Dealer (owner) walks away with $875. If the salesperson can up the price of the car to $20K and push the dealer fee onto the customer, its win-win (for the dealership), and a loss for the buyer.
It really doesn't matter much to you since like others have said, you negotiate the out-the-door price, but thought some people might be interested in the math and reasons behind it.
Originally Posted By: Kestas
Where does that money for the document fee eventually go?
Into the dealer's pocket.
Into the dealership owners pocket, usually. The dealer fee is both a way to tack on extras to the price and it screws over the sales person. A sales person's commission is usually a % of the profit on the sale, so the dealer adds in a 'fee' that gets taken off a the top.
For example, a 20K car costs the dealer 19K with 1K profit. Salesperson makes 25% of profit, so $250 commission, dealer gets $750.
Next example, 19.5K car with a $500 dealer 'fee'(same cost in the end). Dealer takes $500 off the top, salesperson makes 25% of 500 (profit) = $125. Dealer (owner) walks away with $875. If the salesperson can up the price of the car to $20K and push the dealer fee onto the customer, its win-win (for the dealership), and a loss for the buyer.
It really doesn't matter much to you since like others have said, you negotiate the out-the-door price, but thought some people might be interested in the math and reasons behind it.
In Ohio, $250.00 is the max doc fee charge allowed. Virtually all dealers charge it and most won't drop the charge no matter how hard you bellyache about it. I tried when I bought a new WRX eons ago and the manager said we have two WRX's in stock and they will both sell within a week. I waited and sure enough the black one i really wanted was gone and had to settle on blue.
The only way to deal with it is to negotiate the OTD price. I don't care how the dealer gets there - so long it hits my target.
Amazed to see the doc fees at some dealers, particularly in other parts of the country. The last two cars I've bought had a $75 fee, which at the end of the day isn't hard for them to roll into the price.
Amazed to see the doc fees at some dealers, particularly in other parts of the country. The last two cars I've bought had a $75 fee, which at the end of the day isn't hard for them to roll into the price.
Originally Posted By: MNgopher
The only way to deal with it is to negotiate the OTD price. I don't care how the dealer gets there - so long it hits my target.
Amazed to see the doc fees at some dealers, particularly in other parts of the country. The last two cars I've bought had a $75 fee, which at the end of the day isn't hard for them to roll into the price.
Doc fee at one local dealer (Penske) is $999.....
The only way to deal with it is to negotiate the OTD price. I don't care how the dealer gets there - so long it hits my target.
Amazed to see the doc fees at some dealers, particularly in other parts of the country. The last two cars I've bought had a $75 fee, which at the end of the day isn't hard for them to roll into the price.
Doc fee at one local dealer (Penske) is $999.....
It's been $500 on the last 2 cars I've bought in NV. My local Toyota dealer also has the VIN window etching [censored] that they consider a "non-negotiable".
I negotiated the pre-tax price so I can more quickly compare against tru-car or other dealers. Here in NV, DMV reg fees are not included in the OTD price so that's often an added shock.
I negotiated the pre-tax price so I can more quickly compare against tru-car or other dealers. Here in NV, DMV reg fees are not included in the OTD price so that's often an added shock.
Originally Posted By: RhondaHonda
Originally Posted By: Kestas
Where does that money for the document fee eventually go?
Into the dealer's pocket.
Just like all the other money.
Like others have said, it really doesn't matter what the dealer calls it, as long as the out the door fee is a number you a happy to pay for the car.
Let them juggle the numbers above the bottom line all they want as long as you are getting the OTD price you want.
Originally Posted By: Kestas
Where does that money for the document fee eventually go?
Into the dealer's pocket.
Just like all the other money.
Like others have said, it really doesn't matter what the dealer calls it, as long as the out the door fee is a number you a happy to pay for the car.
Let them juggle the numbers above the bottom line all they want as long as you are getting the OTD price you want.
I don't know if Tesla charges Doc Fee or not.
Originally Posted By: skyactiv
In Ohio, $250.00 is the max doc fee charge allowed. Virtually all dealers charge it and most won't drop the charge no matter how hard you bellyache about it. I tried when I bought a new WRX eons ago and the manager said we have two WRX's in stock and they will both sell within a week. I waited and sure enough the black one i really wanted was gone and had to settle on blue.
I don't have a problem with the charge, I do however have a problem paying sales tax on it...
In Ohio, $250.00 is the max doc fee charge allowed. Virtually all dealers charge it and most won't drop the charge no matter how hard you bellyache about it. I tried when I bought a new WRX eons ago and the manager said we have two WRX's in stock and they will both sell within a week. I waited and sure enough the black one i really wanted was gone and had to settle on blue.
I don't have a problem with the charge, I do however have a problem paying sales tax on it...
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