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Documentation Fees

667 messages, Last post on Sep 18, 2009 at 3:24 PM
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Replying to: buckeyelarry (Dec 30, 2006 1:34 pm) A lot of us make Out-the-Door (OTD) offers which include all of the fees we feel like paying - taxes, transportation, tags, etc. If we don't feel like paying a Doc fee, we don't include it in our OTD offer. When we purchased an Accord in 2005, we offered $20700 OTD. They accepted, so we wrote them a check for that amount and drove the new car home. That's how we avoid worrying about a Doc fee. |
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| There are a number of states (CA, PA, IL, OH, MD, etc) that legally limit doc fees and if you live close enough to another state you can use this bit of information. Carmax is a good place to start but this list is not complete: Carmax Estimator . | |
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It is preprinted on our buyers orders in big black bold numbers it has has an arrow pointed at it with a note next to the arrow in black bold print that says. Processing Fee represents dealers recovery of adminisstrative overhead expenses plus dealer profit I.E you are paying the light and water bill and the we are putting the rest in the bank. 1 out of 100 question it. It hardly even comes up, when people ask what it is I tell them to read the description and they usually laugh and say well at least your honest about it. But like many previous posters have said. to the smart car buyer it really does not matter because they are dealing in OTD numbers any way. People who don't negotiate OTD numbers are probably paying more, they just don't relize it.
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Replying to: joel0622 (Mar 10, 2007 12:39 pm) The problem is, at least here in central Florida, the fee is about $500 and it's not disclosed until we get in the business office. Now I've been aware of this for some time so when I negotiate, I'm upfront and say my price includes all dealer fees, then add tax tag & title. Being fee'ed to death is a pet peeve with me. Why not just include the fee in the price of the car? In the end, it doesn't make a difference.
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Replying to: mikefm58 (Mar 10, 2007 3:14 pm) |
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The average DOC charge in my neck of the woods Daytona and West Palm Beach is $1500 !!!!!!!!!!! Thank god NY limits DOC to $75 bucks !
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Replying to: geo9 (Mar 10, 2007 4:19 pm) |
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Nope..............Usually depending on the state the DOC must be disclosed in the fine print in the newspaper ads. Noted the $1500 DOC ( the DOC varied depending upon brand but only by a few bucks!)in the fine print when I was at my Daytona place last week reading the Daytona news........ DOC fees are about the same and disclosed in the Philly papers also............. Imagine buying a toyota there and getting wacked with the SET fee also. Not to mention the ad fees every auto maker charges ! Sure glad I get that GM Employee deal.........NO ad fee, DOC also limited to $75 (used to be NO DOC fee) and a HUGE discount on top of rebates etc........... I guess for the average buyer the Out The Door or "Bobst" method is the ONLY way to buy !!!!!!!!!
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Replying to: geo9 (Mar 11, 2007 7:14 am) |
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Transferred over from another thread: This is an excerpt from a local (and somewhat nationally recognized) auto writer about the state of Illinois' soon to be almost tripling of the DOC fee. Sorry ISell but the "paperwork" a dealer does doesn't justify this ridiculous fee. As he suggests in the article, I negotiate a lower sale price to compensate. Then, as now, the DOC fee isn't mandated by law, the amount is. Dealers are free to charge the fee or not as long as everyone pays the same if it is charged and it doesn't exceed $58.48 now ($150 soon), says Jerry Cizek, president of the Chicago Automobile Trade Association, which represents more than 500 Chicagoland dealers and spearheaded the original DOC fee as well as the proposal for an increase. Bob Loquercio, chairman of the association and an Elgin Toyota, Scion and Hyundai dealer, insists the higher fee is justified. "The amount of paperwork and people needed to process it have increased. The cost has quadrupled since 1992, but the fee hasn't kept up," he said. Can't object to a higher fee if it costs $150 to process the paperwork--Loquercio won't say--but wouldn't hiring a staff that can dot and cross faster be a better solution? Loquercio argues that many dealers, himself included, weren't in business when the DOC fee was adopted and had no say in the amount. "I became a dealer in 1996. We probably had 10 documents to fill out on each sale then. Now it's more like 40. We've more than doubled our staff because [political] bureaucracy has increased the amount of paperwork to process even the simplest of tasks." For example, 9/11 adds to the load. "Dealers have been asked to do more, even checking to make sure they aren't selling to terrorists," said Cizek. Compliance with the Office of Foreign Assets Control mandates dealers don't do business with "prohibited persons," defined as terrorists or those who support them. A dealer can't sell a car to or even change the oil for a prohibited person. An office worker has to check the buyer's name against the people and organizations listed on the OFAC Web site with whom dealers can't do business. There are 262 pages of names, but it only took a couple of minutes to see that there's no Jones, Thompson, Williams and only one Smith (Columbia) on the list. What really gripes Illinois dealers? In at least 30 states dealers charge $400 to $900 in DOC fees--though anyone charging $900 must be using $100 bills for notepads. So what's wrong, they argue, with those in Illinois charging $150? Of course, that raises what surely will be the next question dealers ask: If other states charge from $400 to $900, why is Illinois charging only $150? Replies to this message: isellhondas |
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