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Documentation Fees

667 messages,  Last post on Sep 18, 2009 at 3:24 PM

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#31 of 667 Of course Alfox is right, but ... by cwjacobsen Nov 01, 2002 (6:29 am)
the basic catch to the doc fee - and why it works as a separate fee - is springing it on the customer after s/he thought they had reached a final price. It's nothing more than one last chance to pad the price at the precise moment the customer has emotionally "bought the car" and has let down his or her negotiating guard.   Even trying to find out what the doc fee is isn't foolproof as I've found that the doc fee that the salesman swears his dealership doesn't have suddenly morphs into an "Administrative Fee" or a "Delivery Fee" when paper signing time comes.   Focusing on OTD and sticking to it is of course the answer. Nonetheless, it is undeniably wearying and irritating to have to fend off such arbitrary fees in order to get to a final price.   CWJ
#32 of 667 In Texas, most good negotiators by zueslewis Nov 01, 2002 (6:35 am)
use the term "drive out", which covers everything it takes to roll the car.
#33 of 667 Doc fee's .. by rroyce10 Nov 01, 2002 (9:24 am)
.... I understand that some dealers charge more and some less on this Doc fee issue .. but you gotta understand, it's not free.        Me personally I have a runner, he gets paid $8 dollars an Hr, I also pay the gas, lunch and "depending' on what state, I pay the $6.50 per title flip and the $2.75 per reg.        Depending on how many titles, registration and Surety agreements, this guy will spend 3/4 hrs a day (min), standing in line waiting to drop off or picking-up the titles and regs .. so it's a lot more than that piece of paper that folks get handed at the dealership .. plus depending on the day, I pay someone to log the deals, do the pay-offs, print the deals and notarize all the paper work he gets handed, so add another 3/4 hrs a day there.         Kinda keep in mind, the dealers money is always Upfront, the vehicle, the paper work, the overhead and what most folks forget is - dealers pay All the sales tax upfront on the buyers deal waaay before we get paid ...         So unless someone has an easy $100,000 just sitting around per month, then there has to be some charge to the buyer.        Just my 2 cts ..           Terry.
#34 of 667 STOP THE INSANITY by abtseller Nov 01, 2002 (9:33 am)
quit trying to add common sense to the equation!     Ed
#35 of 667 rroyce by manamal Nov 01, 2002 (9:49 am)
I understand doc fees cover some of the overhead expenses; however, should't that be rolled into the cost of the car (i.e., profit?). I know it would not work, because with everyone paying invoice, there is no profit.   I gather that the doc fees are a way of lowering the apparent price the the car. If two dealers sell the same car, one for 18K + 250 doc; the other: 18,250, the first one will adv. 18K + fees; the other would adv. 18250+....   who will get the business?
#36 of 667 why do some by outhere Nov 01, 2002 (10:01 am)
dealers feel as if this an avenue for additional profits? If they did just cover expenses of the actual PW...this would not be an issue. Most customers are ready, willing and able to pay a reasonable amount to stay out of the state DMV office. What amount is reasonable? Time=Money
#37 of 667 Because the doc fee by zueslewis Nov 01, 2002 (10:48 am)
can be an outlet for dealer profit, if the dealer does things that way. Just like $200 pinstripes instead of $19.95 pinstripes. The stripes cost $5 and an $8 an hour guy takes 15 minutes to put them on.
#38 of 667 Just a FYI, by abtseller Nov 01, 2002 (11:14 am)
the salesman, sales manager, general manager, etc. don't get paid commission on the doc. fee.   Ed
#39 of 667 Ed by raybear Nov 01, 2002 (11:34 am)
Maybe not where you work!
#40 of 667 Outhere by brianw220 Nov 01, 2002 (11:45 am)
Why should a dealer just cover his expenses? Many customers don't want the dealer to profit on the sale of the vehicle, the financing, etc. Their attitude is "make it off the next guy." Guess what, you're the next guy. Dealerships are not charities. They are for-profit businesses. Frankly, most are some of the more charitable businesses in the communities in which they operate. They sponsor the little league team, the junior league, 4-H, etc, etc, etc. I can't tell you how many Saturdays I've eaten some lousy rubber chicken dinner because some group solicited the dealership to buy $7 plates for fund raising. The local car dealer is always on the top of the fund-raising list, and they usually pay up. By far, most dealerships are good, ethical businesses whose policies, procedures and profits are scrutinized far beyond anything any other business endures.

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