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Smart Shopper Documentation Fees
667 messages, Last post on Sep 18, 2009 at 3:24 PM
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This is from the Lexus website: " "Delivery, processing and handling fee" is based on the value of the processing, handling, and delivery services Lexus provides, as well as Lexus' overall pricing structure. Lexus may make a profit on the delivery, processing and handling fee." The fee for the RX 350 is $715 here in VA. Obviously, part of that is profit for the dealership. I wonder what the DPH fee is in CA, where there's a cap on doc fees?
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Replying to: khristina (Apr 13, 2007 6:03 pm) The "doc" or "processing" fee is added by the dealer; it's oftentimes pre-printed on the buyer's order (contract) to make it appear to be non-negotiable. This is really a back-door way of adding profit for the dealer instead of simply raising the sale price of the car slightly. So in this manner, it's no different than dealer-added "accessories" like pinstripes or "mop 'n glo" (glorified wax job). Unfortunately for the salesperson, the processing fee adds nothing to his or her commission.
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Replying to: 210delray (Apr 13, 2007 6:41 pm) Fishy, fishy...
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Replying to: khristina (Apr 13, 2007 8:11 pm) Most of us just compute an out-the-door (OTD) price we are willing to pay and offer it to the dealer. That price includes everything. If they accept, we buy the car. If they do not accept, we leave. We may later go to a different dealer and offer the same price or a higher price, or we may go back to the same dealer and offer a higher price. |
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"...or we may go back to the same dealer and offer a higher price..." Bobst, every time I have returned to a dealer I can almost hear the salesman say "gotcha" and dig his feet in as he prepares to bump the price. I guess they figure that once you come back you are now in a weak position. What would "The Patented Bobst Method" do if the salesman starts the bump and grind? Isn't your threat to walk taken less seriously at that point?
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Replying to: oldfarmer50 (Apr 15, 2007 6:17 am) When I was a young fella like you, I used to think too much. The golf pro Bob Toski accused me of "paralysis through analysis", and I was certaily very guilty of that. I don't try to figure out what the sales person is thinking. I don't care if they say "gotcha", dig in their heels, or start to bump and grind. I don't care if they take me seriously, but I am sure they take my money seriously. Thinking back, I can only recall one time where I went back to the same dealer and increased my offer. They accepted and I bought the car.
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Replying to: bobst (Apr 15, 2007 7:42 am) Thats great Bobst. I truly believe that allot of times people make the transaction much harder then it needs to be. There has been more then one occasion when a fellow manager has asked me why I did not make a particular deal and I tell them that the consumer was on information overload and was to informed to make a decision. It is true there are folks who are armed with so much information that they can't make a decision. I have had cases where people come with there spread sheets, print outs, lap tops, consumer digest articles, EDMUNDS PRINT OUTS  , and a slew of other info and if one thing deviates from the path they are on then they are just blown away, and are unable to make a purchase decision over the fear of getting taken for $1000 over a $300 option 
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Replying to: bobst (Apr 15, 2007 7:42 am) LOL, good one Bobst! |
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Replying to: bobst (Apr 15, 2007 7:42 am) Well you know us young fellas, we like to think a lot. Seriously, would you continue walk out if the second offer was refused? How many chances would you give before you said "forget this guy"? |
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Replying to: oldfarmer50 (Apr 17, 2007 6:33 am) To be honest, farmer boy, your question makes absolutely no sense to me. From my vast experience, the only way to know our offer has been refused is to walk out, get in our car, and drive away. Until that happens, I don't consider the offer to be refused. On our last two car purchases, the salesman followed us into the parking lot to tell us our offer had been accepted. We even had the doors of our car open and were getting in. That is why we only make one offer on each visit to the dealer. It's not over until the fat lady sings or until the farmer coughs up a wad of tobacco.
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