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Stories from the Sales Frontlines

48090 messages,  Last post on Dec 05, 2009 at 5:45 PM

You are in the Smart Shopper Forum. Your Hosts are kirstie_h & tidester

What is this discussion about? Car Buying


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#44327 of 48090
Re: Dealer bate and switch [oldfarmer50] by lrguy44
Jul 02, 2009 (6:44 am)
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Replying to: oldfarmer50 (Jul 02, 2009 6:41 am)

A runner is used to deliver loan packages to the local banks, deliver title work to the DMV - pick up forms, etc. Much of that is done by overnight mail (not cheap). Too many original signatures are needed to do paperwork via fax. Again, the Doc fee (sometimes call Delivery and handling fee) is NOT related to the actual cost of doing business.
#44328 of 48090
Re: Dealer bate and switch [driver100] by oldfarmer50
Jul 02, 2009 (6:52 am)
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Replying to: driver100 (Jul 02, 2009 5:30 am)

"...the cost of doing paperwork should be built into the price..."
 
True, but if they outlaw doc fees some clever dealer will just come up with some other BS fee to pump up the gross. You used to see a charge for "dealer prep" which was bull for the most part. People wised up to that so you don't see it any more. Now it's doc fees.
 
Once doc fees are gone it will a fee for "fresh air integration" which will be a charge for opening the windows.
 
I asked my F&I guy why I was being charged a "tire disposal fee" on a brand new car with no trade. He said that the state collects that fee up front had hopes people forget they paid it by the time they replace their tires. That way the state gets to charge you twice.
 
And you think dealers are sneaky.
#44329 of 48090
Re: Dealer bate and switch [oldfarmer50] by lrguy44
Jul 02, 2009 (6:58 am)
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Replying to: oldfarmer50 (Jul 02, 2009 6:52 am)

Many fees (costs) are built into the price of a car. It costs $100 to prep a new car. After recon, $200 to detail a used car, plus scratch and dent repair. You would never guess what it cost to run a dealership beyond the obvious overhead.
#44330 of 48090
Re: Babecat's Saga [houdini1] by imidazol97
Jul 02, 2009 (7:10 am)
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Replying to: houdini1 (Jul 02, 2009 6:34 am)

IIRC, the poster had been in the Edmunds Answers and kirsty_h (Host) had directed them here for some help.
#44331 of 48090
Re: Dealer bate and switch [lrguy44] by imidazol97
Jul 02, 2009 (7:15 am)
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Replying to: lrguy44 (Jul 02, 2009 6:58 am)

> It costs $100 to prep a new car. After recon, $200 to detail a used car,
 
I recognize the cost of getting a car ready for customer delivery is a valid cost. But it's a cost of doing business, just like the local hardware store has costs for getting boxes of merchandise shipped from their warehouse for a store group and unloaded at the store and unpacked and placed onto the shelves for sale.
 
I expect the dealer to make some profit on a sale. I think being straightforward about how and what is what's at discussion here. Many stores try to make the documentation fee seem like a fee NOT going to them but rather a requirement of the State.
#44332 of 48090
Fees by imidazol97
Jul 02, 2009 (7:16 am)
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>Doc fees are whatever the dealer wants to charge and usually in line with competition within their market.
 
Someone posted this earlier and I'd like to suggest that it should read,
 
"Doc fees are whatever the dealer wants to charge and usually in line with competition collusion among the dealer association within their market.
 
AND
the documentation fee for my Saturday transaction doesn't entail all the steps discussed earlier for some. It doesn't cost much for the help to cash a check into the dealer's deposits for the day drop at the bank. It doesn't cost much to bundle the title application with the 15 others sales that day, new and used, and trundle them over to the auditor's title branch (4 miles either direction). The cost of documenting the temp tag that they write on and glue to the car.
 
Furthermore, the discussion in Ohio's ORC (Ohio Revised Code) 1317.07, e.g., is about installment transactions being the reason to allow a document fee because of the work requisite with setting up a loan on the part of the dealership. I wrote a check. No loan hence no document fee.
 
I already emailed my state representative, who if I recall, operated a license branch before he was elected to the statehouse.
#44333 of 48090
Re: Dealer bate and switch [houdini1] by greanpea68
Jul 02, 2009 (7:35 am)
Reply

Replying to: houdini1 (Jul 01, 2009 2:45 pm)

why don't you also have to charge everyone the same price for a car?
     

 
Well because cars are always negotiated to a purchase price.... Where as a Doc Fee is always the same unless a store raises the doc fee. It comes back to compliance regulations. Once you do one thing or offer one thing to a customer it becomes a business model or a process. So if you charge one person a doc fee you have to charge everyone the same doc fee...
#44334 of 48090
Re: Fees [imidazol97] by jwilliams2
Jul 02, 2009 (7:39 am)
Reply

Replying to: imidazol97 (Jul 02, 2009 7:16 am)

Someone posted this earlier and I'd like to suggest that it should read,
  
"Doc fees are whatever the dealer wants to charge and usually in line with competition
collusion among the dealer association within their market.
 
Well gee, now you are accusing dealers of collusion which is illegal. Wonder why more dealer folks get tired of this forum.
 
I already emailed my state representative
 
Good luck with that.
#44335 of 48090
Re: Dealer bate and switch [kyfdx] by greanpea68
Jul 02, 2009 (7:45 am)
Reply

Replying to: kyfdx (Jul 01, 2009 7:34 pm)

I'm sorry.. but, there is no legal basis for that, either... That doesn't mean that your dealership doesn't treat it that way.... but, plenty of dealers will drop the doc fee, if it means the deal is going away (plenty won't, as well).
 
KYFDX,
 
Lets agree to diagree on this one... ( but I am still right )
 
Here is why I disagree with you. One, are familar with the compliance regulations of a dealership or business practices? I didn't think so. I am. I work for a publicly owned company and have proper knowledge of things should be because it is my job to know these rules.
 
Yes each state has different regulations on Doc fees... Meaning pricing to them....
 
But you can not charge one person a doc fee and not another.... Yes do dealers say OK I will make the deal and you don't have to pay the doc fee..... BUT all you do is deduct the doc fee from the price and on the contracts the doc fee is still listed!
 
If a dealer were to get audited (and I have been through at least one a year) and they are found to not be charging a doc fee to everyone. They are breaking compliance laws and regulations.... The reason the say it is the state is because if a dealer where to be brought to court they would be brought to court in there own state right? They wouldn't be brought before congress, right?
 
So that is what I am talking about. There are many rules and regulations that protect consumers and dealers..... There are so many new regulations now and that is one of the reasons paper work takes so long.
 
GP
#44336 of 48090
Re: Babecat's Saga [graphicguy] by richard64
Jul 02, 2009 (7:45 am)
Reply

Replying to: graphicguy (Jul 02, 2009 6:00 am)

Thank you for your kind words. You write very well yourself. I have always enjoyed reading your posts. You have the ability to add flavor to fact. It is a nice combination.
 
Happy Independence Day to all. Though things are never perfect in life, we are indeed fortunate to live in America.
 
Richard

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