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Dealer fees hassle

9863 Views 28 Replies 16 Participants Last post by Nai3t, Feb 10, 2022

Gamepoch64

Discussion Starter · Mar 16, 2021

Today I just bought an ID.4 in Mt Pleasant, SC. When I reserved my Pro, I immediately called the local dealer that I chose for delivery. I asked if there was going to be any mark up or dealer fees. Salesman said no. Spoke at length how they don’t do that. I then asked, so just msrp destination charge tax title registration right. That’s right he said. I take a test drive awaiting my Pro. Salesman got a lot of stuff wrong which I don’t blame him on new model but I found it odd that he made several political comments. And then he offers to sell me their 1st Edition. I told him great but when he sends me the total price it includes DOC Processing fee $499 and Non Tax Fee of $107. I got upset and reminded him that I didn’t want to pay any markup and that he told me just destination tax title and reg. So he haggles, even says his doc fee is the law (earlier this year CarMax didn’t charge me any dealer fees and even itemized all their pass through costs). I know there are some pass through costs so I agree only if he takes off $400 of the $500 doc fee. I now own this car and love it but the dealer experience was so horrible. This is a major purchase for me and should be fun. I put my guard up from the beginning, challenged my salesperson when he gave me wrong info, haggled, walked away from deal, he walked away from deal then finally came to a price $100 more than I should’ve paid. If I had been allowed to buy direct or through CarMax I would have had a positive experience. I wish automakers and dealers would learn. So if you are going to wait three months or more I suggest you go to your dealer now and get all costs in writing now. If not, good luck.

Reactions: 3

1 - 20 of 29 Posts

xcaliburinhand

· #2 · Mar 16, 2021

Doc fee is pretty common, dealers say it covers the cost of filling out the paperwork surrounding the sale of the vehicle. These days it is all mostly computer generated forms so I really wonder how much effort is being spent filling out paperwork.

Some states limit the max doc fee, I am not aware of any states with a minimum doc fee. Did they say what the non-tax fee was for? Is that covering the plate and title transfer? Non-tax fee is a bit too generic for my liking, easy enough to slip it in without anything behind it.

As they say almost all things are negotiable, including the doc fee. There are some people who will refuse to buy anything unless the doc fee is waived.

Reactions: 1

ErickF

· #3 · Mar 16, 2021

SC is a no-limit doc fee state. Nice work sticking to your guns and getting it to well below average. An unnecessary pain, but now you have vehicle you are happy with. Congrats!

www.edmunds.com

What New Car Fees Should You Pay? | Edmunds

What fees should you expect to pay when you buy a new car? This chart from Edmunds shows the most common ones you may encounter.

www.edmunds.com

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Reactions: 3

javi_ID4

· #4 · Mar 17, 2021

xcaliburinhand said:
As they say almost all things are negotiable, including the doc fee.

You can always say that you'll pay the $500 doc fee if they take it off the MSRP.

Reactions: 3

ericy

· #5 · Mar 17, 2021 (Edited)

For my dealer, there is a single line item "Estimated Registration and Fees" - 930$. Some of that is DMV fees that cannot be avoided, but probably not all that much of the total is DMV fees. Sales tax is a separate line item.

Since my dealer is in turtle mode, I have time to research this before I go to get the car. It would be helpful if others who got the car home broke down the fees as much as possible.

I expect there is the "document fee", "loan origination fee", "prep fee", and of course the DMV fees. But there are undoubtedly others that are creatively named.

javi_ID4

· #6 · Mar 17, 2021

ericy said:
For my dealer, there is a single line item "Estimated Registration and Fees" - 930$. Some of that is DMV fees that cannot be avoided, but probably not all that much of the total is DMV fees. Sales tax is a separate line item.

I expect there is the "document fee", "loan origination fee", "prep fee", and of course the DMV fees. But there are undoubtedly others that are creatively named.

Ask them to itemize the doc fees. If you get pre-approved for a loan, you don't need to pay a loan origination fee.

You are only required to pay government mandated fees. Title, tag and taxes. Anything else, you can ask to take it off the MSRP.

Watch this:

Reactions: 1

majorgearhead

· #7 · Mar 17, 2021

Gamepoch64 said:
Today I just bought an ID.4 in Mt Pleasant, SC. When I reserved my Pro, I immediately called the local dealer that I chose for delivery. I asked if there was going to be any mark up or dealer fees. Salesman said no. Spoke at length how they don’t do that. I then asked, so just msrp destination charge tax title registration right. That’s right he said. I take a test drive awaiting my Pro. Salesman got a lot of stuff wrong which I don’t blame him on new model but I found it odd that he made several political comments. And then he offers to sell me their 1st Edition. I told him great but when he sends me the total price it includes DOC Processing fee $499 and Non Tax Fee of $107. I got upset and reminded him that I didn’t want to pay any markup and that he told me just destination tax title and reg. So he haggles, even says his doc fee is the law (earlier this year CarMax didn’t charge me any dealer fees and even itemized all their pass through costs). I know there are some pass through costs so I agree only if he takes off $400 of the $500 doc fee. I now own this car and love it but the dealer experience was so horrible. This is a major purchase for me and should be fun. I put my guard up from the beginning, challenged my salesperson when he gave me wrong info, haggled, walked away from deal, he walked away from deal then finally came to a price $100 more than I should’ve paid. If I had been allowed to buy direct or through CarMax I would have had a positive experience. I wish automakers and dealers would learn. So if you are going to wait three months or more I suggest you go to your dealer now and get all costs in writing now. If not, good luck.

So you are the one who purchased their white 1st edition.

I was coming back this week for a test drive and they sold it. Do you mind me asking who your sales guy was? My RWD is slated to come there in late spring. They gave me the same schpeel about no markup but did mention if someone wanted to buy their demo they would sell for a markup. Starting to get nervous that I picked the wrong dealership. The only issue is the other well known low country VW dealership does not hide the fact that they mark every car up 5k so I did not want to go to them. May consider it now.

Miked2855

· #8 · Mar 17, 2021

Sorry to hear about your hassle with the doc fees at Low Country VW in MTP. This is the same dealership that I have chosen to have my Pro S RWD delivered to when it comes in. I actually stopped by the dealership today to see if they had an ID.4 there for me to look at. The salesperson said they just sold it. Small world!
I will try to make sure I get the deal you got on the reduced doc fee.

majorgearhead

· #9 · Mar 17, 2021

Miked2855 said:
Sorry to hear about your hassle with the doc fees at Low Country VW in MTP. This is the same dealership that I have chosen to have my Pro S RWD delivered to when it comes in. I actually stopped by the dealership today to see if they had an ID.4 there for me to look at. The salesperson said they just sold it. Small world!
I will try to make sure I get the deal you got on the reduced doc fee.

That makes three of us. Stokes VW has one ready for test drives and they let me take it out in 26. I got to use the driver assist and everything. The sales lady who helped us with it was pretty knowledgeable about it and was very nice.

Gamepoch64

Discussion Starter · #10 · Mar 18, 2021

javi_ID4 said:
You can always say that you'll pay the $500 doc fee if they take it off the MSRP.

That’s what they ended up doing in my case. Just to reiterate CarMax does not charge dealer fees.

Reactions: 1

PGilly

· #11 · Mar 18, 2021

The doc fees in California are maxed out at $80.

Reactions: 1

Evera

· #12 · Apr 21, 2021

Lindsay VW in Virginia charged $699 for doc fee and some County tax fee. They refused to waive it.

Gamepoch64

Discussion Starter · #13 · Apr 21, 2021

Evera said:
Lindsay VW in Virginia charged $699 for doc fee and some County tax fee. They refused to waive it.

Thank you for sharing. I’d be curious if they charge that same doc fee for any of their other cars or if the $699 is just for the ID4.

Nai3t

· #14 · Apr 21, 2021

Evera said:
Lindsay VW in Virginia charged $699 for doc fee and some County tax fee. They refused to waive it.

Jeez. I'm going to try this when I sell our S60 on Craigslist. Yes, I know we agreed to $15,000 but I have to pay myself for my time for cleaning, photographing, listing, showing, and selling the car, so I have a non-negotiable $699 "doc fee." But I'll throw in a half a tank of gas for free!

Reactions: 3

javi_ID4

· #15 · Apr 21, 2021

Evera said:
Lindsay VW in Virginia charged $699 for doc fee and some County tax fee. They refused to waive it.

I know is too late now, but I would have asked to itemize the $600 to see what the "some County tax fee" was.

ericy

· #16 · Apr 21, 2021

javi_ID4 said:
I know is too late now, but I would have asked to itemize the $600 to see what the "some County tax fee" was.

Most likely a Virginia thing - county tax is probably the county car tax. Every year, you get taxed a percentage of the blue book value of the car as a form of property tax.

You think paying sales tax on a car seems like a lot - imagine paying it every year.

Reactions: 1

ExCivilian

· #17 · Apr 22, 2021

For leases, $699 is the lease acquisition fee. If it was a purchase, they probably have an analog to the acquisition fee.

donpablopereira

· #18 · Nov 13, 2021

majorgearhead said:
So you are the one who purchased their white 1st edition. I was coming back this week for a test drive and they sold it. Do you mind me asking who your sales guy was? My RWD is slated to come there in late spring. They gave me the same schpeel about no markup but did mention if someone wanted to buy their demo they would sell for a markup. Starting to get nervous that I picked the wrong dealership. The only issue is the other well known low country VW dealership does not hide the fact that they mark every car up 5k so I did not want to go to them. May consider it now.

No markups if you order car in advance. But cars on the lot that were cancelled selling over MSRP

ShaunInDC

· #19 · Nov 13, 2021

Evera said:
Lindsay VW in Virginia charged $699 for doc fee and some County tax fee. They refused to waive it.

I just made my reservation with Ourisman Bethesda. Wondering how your experience with Lindsay was otherwise. I'm early enough in the process where I'm still very much open to swapping dealerships.

lynnejohn

· #20 · Jan 21, 2022

I'd like to ask those that bought their ID.4 in CT, what did your dealer charge you as a "Doc fee"? My dealer's initial price list included a "Government Fee" of $250 and a "Proc/Doc Fee" of $689. The Gov fee is what the dealer is calling the CT registration/plate fee and from what I can tell online it should be $125(excluding the high CT sales tax.) The dealer is saying the Proc/Doc fee is standard and that they are one of the lowest in the state. Given the current market situation I'm sure that if I walk away they will be able to get much more money for the vehicle, so they have no incentive to lower the price.

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