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Re: What is a dealer prep fee? [Re: bachman] #5354675 02/19/20 04:52 PM
Joined: Jul 2005
Posts: 34,135
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demarpaint Offline
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Joined: Jul 2005
Posts: 34,135
Originally Posted by bachman

Originally Posted by demarpaint
A dealer prep fee is just another fee to rip someone off with, or something for a dealer to use as a negotiation tool. Either way it's BS, and drives their profits higher. Some people pay it though. I tell the salesman right from the get go, I negotiate on the out the door price, no hidden fees, no surprises, the bottom line with taxes, etc. If he/she or they don't like it I'll buy from someone else.


That's the trick.
Remove emotion, vote with your wallet and at times, "the dealer" will let you walk away. There are some deals or customers they don't want or need. Sometimes the last day of the month or year does factor in.

Having sold cars and knowing every possible way they can rip you off is a big help too. I set them straight right from the get go. If they don't like me or doing business my way, that's just fine by me, I'll find someone who will. I also realize all businesses are in business to make a profit, they just aren't going to hit it out of the park with me. Another tip is never buy a car when you need one bad, or at least don't let them know, smart salesmen can pick up on that real fast, and cash in on it.


God Bless Our Troops

Re: What is a dealer prep fee? [Re: WhyMe] #5354760 02/19/20 06:41 PM
Joined: Jun 2003
Posts: 3,027
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userfriendly Offline
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Joined: Jun 2003
Posts: 3,027
I find that the smaller dealerships, even from the same auto group push the "lye downs" such as paint sealant more than the larger ones.
Rocks in a tin can to up sell undercoating etc.
The last truck I bought ($88,000 sticker), from a large busy dealership, none of the above was mentioned.
I was their 5th new vehicle before 10am.

There is quite a large HR turn over in the new car business.
A reputable dealership will put the run on the scum, back stabbers and guys that would rent their grandmother out to haunt houses.

Re: What is a dealer prep fee? [Re: bachman] #5354848 02/19/20 08:15 PM
Joined: Jan 2004
Posts: 6,545
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nthach Offline
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Joined: Jan 2004
Posts: 6,545
Originally Posted by bachman
Originally Posted by nthach


There are some good salespeople and F&I staff out there but most of them are scum.


lol, Might have created the very monster we suffer.

Never went to F&I but I'd think it's the last strike at creating, generating or retaining profits.

I was lucky to have found the right mix of humor and attitude to make my years of sales and marketing fun.

Thankfully, my personal integrity stayed fairly respectable through 20 years of sales/marketing although I'd guess my exceptions or lapses were justified by the heat of the moment.



Well, I've seen the F&I office work in passing and they seem to be more high-pressure. I've seen new customers walk out with alarms and paint/fabs. I've been in the finance office with my parents once. But then again, the car business is a low margin business and I can see why dealerships pack on the extras like alarms, lift kits, "pro packs", etc. All of it has a low COGS, we didn't have to get the shop to install them as they are outsourced(KARR Alarms from SWDS is one good example, their tech would be out on the lot installing these wretched things into cars) and it's pure profit for every one sold. A dealership is a high-overhead business, it costs a lot to keep a store open - labor, marketing and floorplan cost a lot.

I've noticed high-end brands generally have better salespeople who aren't about the hustle but want to know you enough to help them out and make the sale. When I worked at the dealership, I noticed the more senior staff generally had a better attitude and took the time with their customers and it showed - they had repeat customers and the tower respected them. The shop never talked smack behind their backs(and would even change their oil for free after hours in exchange for a friends/family referral). The young guns hustled a lot and I've seen their tactics backfire. Of course, most of the techs in the back are surly but most of them are good people and have to deal with salespeople or management all day. If a tech doesn't put you on their doo-doo list, you're OK in their book.

I feel if you treat your customer with respect and at least make an effort to be human and likeable and not just trying to make a deal or get a spiff, it will go a long way. That's what I liked about the more senior salespeople when I worked at a dealership.

Re: What is a dealer prep fee? [Re: fsdork] #5354870 02/19/20 08:53 PM
Joined: Mar 2014
Posts: 4,590
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Leo99 Offline
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Joined: Mar 2014
Posts: 4,590
Originally Posted by fsdork
Originally Posted by madRiver
The key thing is to negotiate price including all fees including doc and prep and whatever.


Exactly. The total amount at the bottom of the invoice is all that matters. How the lines above are broken down is of no concern.


100% correct. This fee is there so the dealer can remove it and make folks that worry about line items think they won. I guarantee you the dealer doesn't care how the numbers add up. They only care about the bottom line. We all should think that way.


Without data you're just another person with an opinion. W. E. Deming

2003 Corolla 250,000 miles (RIP)
2004 Corolla 125,000 miles
2004 Rav4 392,000 miles
2015 Camry 90,000 miles
Re: What is a dealer prep fee? [Re: nthach] #5355941 02/20/20 08:30 PM
Joined: May 2019
Posts: 1,042
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AC1DD Offline
Offline
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Joined: May 2019
Posts: 1,042
Originally Posted by nthach
Of course, most of the techs in the back are surly but most of them are good people and have to deal with salespeople or management all day. If a tech doesn't put you on their doo-doo list, you're OK in their book.





Yep, you worked in sales at a car dealership! crackmeup happy

Sorry to say most of us don't like sales guys very much with the few exceptions here and there. After you ask us for a "favor" and walk out of the shop
you'll hear us grumbling afterwards. crazy

Re: What is a dealer prep fee? [Re: nthach] #5356181 02/21/20 04:57 AM
Joined: Jul 2012
Posts: 198
bachman Offline
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Posts: 198
Originally Posted by nthach

Well, I've seen the F&I office work in passing and they seem to be more high-pressure. I've seen new customers walk out with alarms and paint/fabs. I've been in the finance office with my parents once. But then again, the car business is a low margin business and I can see why dealerships pack on the extras like alarms, lift kits, "pro packs", etc. All of it has a low COGS, we didn't have to get the shop to install them as they are outsourced(KARR Alarms from SWDS is one good example, their tech would be out on the lot installing these wretched things into cars) and it's pure profit for every one sold. A dealership is a high-overhead business, it costs a lot to keep a store open - labor, marketing and floorplan cost a lot.

I've noticed high-end brands generally have better salespeople who aren't about the hustle but want to know you enough to help them out and make the sale. When I worked at the dealership, I noticed the more senior staff generally had a better attitude and took the time with their customers and it showed - they had repeat customers and the tower respected them. The shop never talked smack behind their backs(and would even change their oil for free after hours in exchange for a friends/family referral). The young guns hustled a lot and I've seen their tactics backfire. Of course, most of the techs in the back are surly but most of them are good people and have to deal with salespeople or management all day. If a tech doesn't put you on their doo-doo list, you're OK in their book.

I feel if you treat your customer with respect and at least make an effort to be human and likeable and not just trying to make a deal or get a spiff, it will go a long way. That's what I liked about the more senior salespeople when I worked at a dealership.



Very On Point . thumbsup

I was fortunate to get in when internet buying was a new and growing trend. Not sure I'd have liked it or made it a success as a lot lizard. Just wasn't my style.
I could sell off the lot just the same but the printer feed was keeping us busy. The internet buyer was well educated, well funded, knew exactly what they wanted or darn close and was a no BS deal. We had half the paperwork and none of the credit drama of normal sales floor staff.

Last edited by bachman; 02/21/20 05:06 AM. Reason: thumbs

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