New car doc fees

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SpringMan
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New car doc fees

Post by SpringMan » Fri May 26, 2017 8:16 am

Please educate me. I am in the process of buying a new car. Price is cut and dry with an employee discount through son. Dealership sales person said the doc fee was $210 in MI. He said it is mandated by the state and non negotiable because it goes to the state much like sales tax. I googled this and it says the MAXIMUM doc fee allowed in MI for doc fee is $210. Furthermore it said doc fee is compensation to the dealership for paper work with secretary of state for license plates and titles and not a source of revenue to the state. I feel the salesman is lying regarding this fee. I am not opposed to paying reasonable compensation for work done but don't like BS.
Thanks
Best Wishes, SpringMan

livesoft
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Re: New car doc fees

Post by livesoft » Fri May 26, 2017 8:26 am

Don't tell us, please tell the salesman and let us know what they say. One can buy a car cheaper than with an employee discount, so there's that as well.
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Jack FFR1846
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Re: New car doc fees

Post by Jack FFR1846 » Fri May 26, 2017 8:31 am

The salesman is flat out lying. The doc fee probably must be listed on their purchase and sales agreement, pre-printed. But there's absolutely NO requirement to have it beyond marketing. They could indeed have zero doc fee and simply price the car higher by that amount. The doc fee is profit, pure and simple.

Some car dealers include some actual value for the doc fee. This might include a full tank of gas (where the manufacturer doesn't already require this), or state inspection or some free oil changes. But of course, some dealers give you nothing.

What dealers do now, is give you a price below invoice. Invoice is their cost. How they can do this? Beyond holdback, they add the doc fee.

For the lying that this salesguy did, I'd take my business elsewhere.
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anil686
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Re: New car doc fees

Post by anil686 » Fri May 26, 2017 8:42 am

There is (was) a cost to do the paperwork. I have no doubt there is work in doing that - but the reason the doc fee is capped is to not make it egregious. The max doc fee a state allows would probably be based (IMO) for a very small dealer (perhaps used) that has very few employees and little computer support to file all the required forms/taxes. Probably mega dealership has a minimal cost in that everything may be pre-populated/automated. Agree with the other 2 posts - that does not sound right. Costco buying service as well as many credit unions fix the doc fee at a certain level as part of their deal (It has been six years since I bought a car so I can't remember what that value was - but it sounded lower than $200). Hope that helps...

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Kenkat
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Re: New car doc fees

Post by Kenkat » Fri May 26, 2017 8:46 am

There are some actual state fees that are covered by the doc fee - for example, in Ohio there is a $15 fee to transfer the title.

I have always just assumed the dealer doc fee will be included in the final price. In Ohio, it is $255. I negotiate on price knowing that is getting added back in. It is easier than trying to negotiate that item specifically or trying to negotiate that after the final price has been agreed upon.

smackboy1
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Re: New car doc fees

Post by smackboy1 » Fri May 26, 2017 8:49 am

SpringMan wrote:Price is cut and dry with an employee discount through son. Dealership sales person said the doc fee was $210 in MI. He said it is mandated by the state and non negotiable because it goes to the state much like sales tax. I googled this and it says the MAXIMUM doc fee allowed in MI for doc fee is $210. Furthermore it said doc fee is compensation to the dealership for paper work with secretary of state for license plates and titles and not a source of revenue to the state. I feel the salesman is lying regarding this fee.
This is why when negotiating with salespeople the only number that matters is the "out the door" price. Whether they call it a fee or profit is largely irrelevant to you as the buyer. No need to waste time arguing if it's mandated by the state or not. The OTD price unambiguously includes everything you pay:

Doc Fees
Tax
Tags & Registration
Manufacturer Incentives
Destination
Discounts
Incentives
Profit
etc.

It makes comparing competing bids easy and it doesn't matter how the dealership labels the fees and profit. Compare all the OTD prices and go with the lowest.
Disclaimer: nothing written here should be taken as legal advice, but I did stay at a Holiday Inn Express last night.

Tamales
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Re: New car doc fees

Post by Tamales » Fri May 26, 2017 9:00 am

Yep, as Jack said, salesman is lying, or at least twisting the truth.

Imagine if every business tacked on fees for doing paperwork that is a normal part of doing business. OK, a car purchase does have more paperwork than most purchases, so maybe a small convenience fee is justifiable, so you don't have to file the paperwork yourself.

Some states have no cap, and the doc fee can be much higher. $210 is higher than justifiable (i.e. dealer is making a profit from it) but probably shouldn't be a deal breaker.

Car salespeople lie. That's no surprise and you just have to expect that as part of the process and verify everything they say.

Do you really want to kill the deal now, spend time doing all the same motions with another dealer, possibly with the same outcome?
Your time worth more than that.

123
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Re: New car doc fees

Post by 123 » Fri May 26, 2017 9:05 am

While I don't know the extent of the employee discount for vehicles, and whether it varies by model, I would check to be sure that I couldn't get a suitable vehicle, perhaps another brand from a different dealer, without the "discount" for less. Keep your eyes open.
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8foot7
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Re: New car doc fees

Post by 8foot7 » Fri May 26, 2017 9:11 am

smackboy1 wrote: This is why when negotiating with salespeople the only number that matters is the "out the door" price. Whether they call it a fee or profit is largely irrelevant to you as the buyer. No need to waste time arguing if it's mandated by the state or not. The OTD price unambiguously includes everything you pay:

Doc Fees
Tax
Tags & Registration
Manufacturer Incentives
Destination
Discounts
Incentives
Profit
etc.

It makes comparing competing bids easy and it doesn't matter how the dealership labels the fees and profit. Compare all the OTD prices and go with the lowest.
+1,000. This is the right approach. They could sell the car for $5 and have a $19,995 doc fee for all I care. "What amount do I make the check out for" is the only appropriate question.

PS These doc fees are almost certainly NOT required by the state. They're allowed, sure, but almost certainly not mandated. I suggest, though, that you simply not care about this and focus on the out-the-door price.

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Uncle Pennybags
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Re: New car doc fees

Post by Uncle Pennybags » Fri May 26, 2017 9:12 am

Q: How can you tell when a saleswomen is lying?
A: Her lips move.

Tell her you are walking and watch her change her tune.

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SpringMan
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Re: New car doc fees

Post by SpringMan » Fri May 26, 2017 9:26 am

Thanks for the replies. The model I was looking at had incentives, 4000 for cash, 6000 if financed. I could finance as little as 6000 and still be eligible for the 6000. The rate was 4.9% and I was told after 90 days I could pay off the loan with no prepayment penalties. Seems worth it but I have salesman trust issues.
Best Wishes, SpringMan

Spirit Rider
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Re: New car doc fees

Post by Spirit Rider » Fri May 26, 2017 9:28 am

Agree completely. Documentation or other dealer fees are just additional profit margin. Around here any out of pocket fees (title, temporary tags,, etc...) are separately itemized on the P&S agreement.

The only thing that ever matters is an out the door price. Don't every let them try to tell you that it is mandatory. They will try to tell you that the state mandates the doc fee must be the same for all customers. That is usually just BS, even if it is true and even if the amount is pre-printed on the P&S, all they have to do is reduce the sale price to compensate.

P.S. Rule #1 when buying a car, don't get emotional. Don't let the fact that the salesman was BSing you, affect the decision other than maybe knock a few hundred ofk of your offer. You shouldn't be having any trust issues with the salesman, because it was a mistake to have extended any trust to him in the first place. The salesman no matter what, is not your friend, he is your adversary. If you ever start thinking a person you are buying a product or service from is on your side, you are likely wrong.
Last edited by Spirit Rider on Fri May 26, 2017 9:34 am, edited 1 time in total.

sk2101
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Re: New car doc fees

Post by sk2101 » Fri May 26, 2017 9:31 am

When getting employee pricing the only variable is really the dealer fee. I know that GM caps the amount dealers can tack on an employee sale.

You can look at other dealerships and see why doc fees they charge. If lower then get the car though them.

Also if you are in SE MI check dealers in Toledo.

ETA: I would be jumping up and down to pay $200 dealer fee. Here in FL $1000 is common.

sport
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Re: New car doc fees

Post by sport » Fri May 26, 2017 10:16 am

I bought a car through the Costco buying service. The dealer was required by Costco to show me the invoice and the deal was invoice plus $200. When I saw the doc fee, I told the dealer I did not want to pay that. He said that fee was non-negotiable. Then he reduced the price by about half of that fee.

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mrc
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Re: New car doc fees

Post by mrc » Fri May 26, 2017 10:36 am

Just goes to show that even with a discounted and set sale price (manufacturer employee), you must still watch the dealership's every move. "We always cover tires for our leasees!" means you'll find a "$500 fee for tire warranty" added to the sale price and buried on page 9 of the lease/sales agreement. If you look for it BEFORE you sign you can strike it. Or "Every lessee is a VIP! (free oil changes, tire rotations, 9432 point inspection, etc.)!" You'll find that fee in the lease/sales agreement too. The DOC fee is not required, nor mandatory. Especially for a customer that (with the discount plan) can use any dealership. Then there's the 5 hour process, talking to 4 separate folks. Finance is always last.

You know there's a 3x5 card somewhere that says:

Q: What about the doc fee?
A: Mandatory!

Q: Really, I don't think so.
A: All dealerships include it.

Q: Really? Bob Jones Ford waived it last time. Maybe I should go there?
A: split the difference, scowl at customer.

I walk in with my PIN and say I need this done in 2 hours -- hard stop. That helps some. But you still need to take food, water, something to read. And be prepared to spend a while at the dealership.

Edit: And by the way, dealers that do discount sales (A-Plan, X-Plan for Ford, GM and others similar) are well compensated by the manufacturer.
If it’s not long term it’s small talk

Atgard
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Re: New car doc fees

Post by Atgard » Fri May 26, 2017 10:51 am

Every dealer I have seen adds in some sort of Doc Fee or Dealer Fee or whatever.

Many states now regulate it to some maximum (but no minimum!) amount, and/or make them list "Dealer Profit" next to the fee, so you know it doesn't mean anything really. Just a way for them to shake hands on a price, then tack on something extra at the end for profit, hopefully low enough that you're tired and don't walk out on the deal! So I always ask about it up front, and make clear I am negotiating on the total cost of the car. As many have said, just add it to the sales price of the car (or look at the final out-the-door price).

That said, $210 is not an unreasonable Doc Fee. I just bought a car with a Doc Fee of $379. I was told I could choose to waive that fee and deal with the DMV myself on the title, etc. I appreciated the choice & transparency and actually let the dealer handle the title, transferring registration, FedExing stuff to me, etc. instead of trying to wait in line at the DMV.

Most dealers charge $599 or more and don't let you waive it. But, I just consider that as an add-on to the price of the car. Even if they say "We can't change it" (which is not true, the dealer just doesn't want to), I just say, fine, lower the price of the car by $599 ... or hit this total price however you get there. Like someone said, $20,000 car cost + no doc fee, or $19,800 car cost + $200 doc fee, or $200 car cost + $19,800 doc fee makes no difference.

I note sales tax is charged on the sales price + doc fee... but is not charged on the actual costs for car title & registration.

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Re: New car doc fees

Post by smackboy1 » Fri May 26, 2017 10:59 am

SpringMan wrote:The model I was looking at had incentives, 4000 for cash, 6000 if financed. I could finance as little as 6000 and still be eligible for the 6000. The rate was 4.9% and I was told after 90 days I could pay off the loan with no prepayment penalties. Seems worth it but I have salesman trust issues.
If you are going to finance the purchase you should compare the "total cost" of the purchase over the loan period.

Total cost = OTD price + all the interest and fees over the period of the loan

The manufacturer and dealer can make up for a lower OTD price on interest and fees. In fact the financing is likely more profitable than selling the car. If someone tells you you can get the lower OTD price and largely eliminate the interest and fees without penalty, I would be very skeptical. How is the manufacturer and dealer going to make up the profit? Before I sign I would want to get a full disclosure of all financing fees, interest, penalties, and terms and conditions in writing. The finance manager is the last person you talk to before taking delivery of the car. They are the most elite salespeople at the dealership. If anybody is going to screw you over, it's that guy.

Also, have your own 3rd party financing in your back pocket so you know what a competitive rate looks like. Credit unions often have great rates.
Disclaimer: nothing written here should be taken as legal advice, but I did stay at a Holiday Inn Express last night.

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Uncle Pennybags
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Re: New car doc fees

Post by Uncle Pennybags » Fri May 26, 2017 11:15 am

There must be an agreement between hustlers to show a "documentation fee" no matter what. When I refused to pay the "fee" they keep the fee but reduced the price of the car. Bottom line the "fee" is taxed as the cost of the car.

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celia
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Re: New car doc fees

Post by celia » Fri May 26, 2017 11:24 am

SpringMan wrote:Please educate me. I am in the process of buying a new car. Price is cut and dry with an employee discount through son. Dealership sales person said the doc fee was $210 in MI.
If the dealership said, "Here's the price according to the employee discount and we need to add $210 as the dealer part of expenses for running a dealership", would you have said "OK"?

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dm200
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Re: New car doc fees

Post by dm200 » Fri May 26, 2017 11:31 am

Feedback - Virginia

Many of these issues are state specific, but there are often common patterns:

1. In Virginia, there is a small "gross receipts" tax on businesses, such as dealerships. Virginia law ALLOWS (but does not mandate) car dealers to add this tax to car sales. The almost universal practice is that dealerships just add it and claim it is required (a lie)

2. In Virginia (and I suspect other states), sales tax (or equivalent) is required to be charged and collected.

3. If you can do (yourself) some or all of the items in the doc fee, you should be able to get out of paying.

4. To be fair to dealers, there may be (not 100% sure) some justification for some of doc fee being kept by the dealer because the guy/gal doing paperwork at DMV does not work for nothing.

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Uncle Pennybags
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Re: New car doc fees

Post by Uncle Pennybags » Fri May 26, 2017 11:33 am

celia wrote:
SpringMan wrote:Please educate me. I am in the process of buying a new car. Price is cut and dry with an employee discount through son. Dealership sales person said the doc fee was $210 in MI.
If the dealership said, "Here's the price according to the employee discount and we need to add $210 as the dealer part of expenses for running a dealership", would you have said "OK"?
NO; it isn't on the sticker.

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SpringMan
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Re: New car doc fees

Post by SpringMan » Fri May 26, 2017 11:43 am

Salesman had agreed to eat half the doc fee but insists the whole 210 is reflected in the paper work.
Best Wishes, SpringMan

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Uncle Pennybags
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Re: New car doc fees

Post by Uncle Pennybags » Fri May 26, 2017 11:45 am

dm200 wrote:car dealers to add this tax to car sales
I would pay it if I, and not the hustler, could itemize it as a deduction.
SpringMan wrote:Salesman had agreed to eat half the doc fee but insists the whole 210 is reflected in the paper work.
All or none, play hard ball.

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greg24
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Re: New car doc fees

Post by greg24 » Fri May 26, 2017 11:58 am

SpringMan wrote:Salesman had agreed to eat half the doc fee but insists the whole 210 is reflected in the paper work.
They would only do that to force you to pay the entire amount. And pay tax on the entire amount.

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FrugalInvestor
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Re: New car doc fees

Post by FrugalInvestor » Fri May 26, 2017 12:21 pm

The last time I purchased a car I held a little something in reserve. I knew I wanted a couple of accessories but also knew that I could purchase them online for less than I could get them with the car. So when the doc fee came up I refused to pay it - multiple times. When the finance guy called in the salesman I refused but then offered to accept it providing that the accessories I wanted were included at no charge. It worked. I got the accessories at a nice discount and the dealer got their doc fee. Had that not worked I was on my way out the door.
IGNORE the noise! | Our life is frittered away by detail... simplify, simplify. - Henry David Thoreau

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whodidntante
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Re: New car doc fees

Post by whodidntante » Fri May 26, 2017 12:26 pm

Ford caps the amount dealers can charge and actually audits that they do not go over that amount. I believe the cap is $50 but I'm not certain. The dealer also cannot sweeten the deal although trade in valuation is one possible backdoor. I'm referring to X plan pricing.

Jack FFR1846
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Re: New car doc fees

Post by Jack FFR1846 » Fri May 26, 2017 12:39 pm

Supplier discount programs are really just to allow buyers to come in and not get totally ripped off. I've been on them for years.

Mazda (when part of Ford), X plan price was $19k. I paid $14.6k for an "ad car". Supplier has access to website to be able to see the X price without calculations at any dealer inventory page.
Chrysler/Dodge/Jeep, Every time I mention I'm on the plan, the sales man tells me they can easily beat this and I've bought a couple times and they've blown that price out of the water (thousands).
GM, Not sure that it can be beaten. Dealer gets a discount on his purchase and the actual price can easily be calculated by the customer.
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SpringMan
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Re: New car doc fees

Post by SpringMan » Fri May 26, 2017 1:58 pm

For what it is worth, 2017 Dodge Journey is the vehicle in question.
Best Wishes, SpringMan

inbox788
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Re: New car doc fees

Post by inbox788 » Fri May 26, 2017 7:02 pm

SpringMan wrote:For what it is worth, 2017 Dodge Journey is the vehicle in question.
Are you saving more than the $4500 plus discount currently being offered? If you can get 10% off MSRP and the rebates, $6-7k below MSRP or more may be possible.

https://www.dodge.com/en/incentives/bonus_incentives/

dbltrbl
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Re: New car doc fees

Post by dbltrbl » Fri May 26, 2017 7:18 pm

Doc fees are everywhere. I have paid as little as $40.00 to as high as 250.00. Pay 210 and move on.

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unclescrooge
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Re: New car doc fees

Post by unclescrooge » Fri May 26, 2017 7:48 pm

Atgard wrote:Every dealer I have seen adds in some sort of Doc Fee or Dealer Fee or whatever.

Many states now regulate it to some maximum (but no minimum!) amount, and/or make them list "Dealer Profit" next to the fee, so you know it doesn't mean anything really. Just a way for them to shake hands on a price, then tack on something extra at the end for profit, hopefully low enough that you're tired and don't walk out on the deal! So I always ask about it up front, and make clear I am negotiating on the total cost of the car. As many have said, just add it to the sales price of the car (or look at the final out-the-door price).

That said, $210 is not an unreasonable Doc Fee. I just bought a car with a Doc Fee of $379. I was told I could choose to waive that fee and deal with the DMV myself on the title, etc. I appreciated the choice & transparency and actually let the dealer handle the title, transferring registration, FedExing stuff to me, etc. instead of trying to wait in line at the DMV.

Most dealers charge $599 or more and don't let you waive it. But, I just consider that as an add-on to the price of the car. Even if they say "We can't change it" (which is not true, the dealer just doesn't want to), I just say, fine, lower the price of the car by $599 ... or hit this total price however you get there. Like someone said, $20,000 car cost + no doc fee, or $19,800 car cost + $200 doc fee, or $200 car cost + $19,800 doc fee makes no difference.

I note sales tax is charged on the sales price + doc fee... but is not charged on the actual costs for car title & registration.
Or you could have paid $50 for AAA membership and gotten it done free.

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Toons
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Re: New car doc fees

Post by Toons » Fri May 26, 2017 8:07 pm

Isn't buying a new car ,,
"fun",,,, :oops: :oops:
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

CFM300
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Re: New car doc fees

Post by CFM300 » Fri May 26, 2017 8:56 pm

SpringMan wrote:I feel the salesman is lying regarding this fee.
Imagine that!

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Kenkat
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Re: New car doc fees

Post by Kenkat » Sat May 27, 2017 9:34 am

unclescrooge wrote:
Atgard wrote:Every dealer I have seen adds in some sort of Doc Fee or Dealer Fee or whatever.

Many states now regulate it to some maximum (but no minimum!) amount, and/or make them list "Dealer Profit" next to the fee, so you know it doesn't mean anything really. Just a way for them to shake hands on a price, then tack on something extra at the end for profit, hopefully low enough that you're tired and don't walk out on the deal! So I always ask about it up front, and make clear I am negotiating on the total cost of the car. As many have said, just add it to the sales price of the car (or look at the final out-the-door price).

That said, $210 is not an unreasonable Doc Fee. I just bought a car with a Doc Fee of $379. I was told I could choose to waive that fee and deal with the DMV myself on the title, etc. I appreciated the choice & transparency and actually let the dealer handle the title, transferring registration, FedExing stuff to me, etc. instead of trying to wait in line at the DMV.

Most dealers charge $599 or more and don't let you waive it. But, I just consider that as an add-on to the price of the car. Even if they say "We can't change it" (which is not true, the dealer just doesn't want to), I just say, fine, lower the price of the car by $599 ... or hit this total price however you get there. Like someone said, $20,000 car cost + no doc fee, or $19,800 car cost + $200 doc fee, or $200 car cost + $19,800 doc fee makes no difference.

I note sales tax is charged on the sales price + doc fee... but is not charged on the actual costs for car title & registration.
Or you could have paid $50 for AAA membership and gotten it done free.
What do you mean by this? I am a AAA member and unaware of any benefit around dealer doc fees.

Tamales
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Re: New car doc fees

Post by Tamales » Sat May 27, 2017 9:50 am

Here's a chart of dealer doc fees by state, whether there's a limit in law, and averages:
https://www.edmunds.com/car-buying/what ... html#chart
(the list was created march 2015)

and a similar article here: http://www.realcartips.com/newcars/482- ... tate.shtml

makes an interesting claim: "You cannot negotiate a dealer's doc fee because they are required by law to charge the same amount to every customer. You can, however, ask them to reduce the price of the vehicle to compensate for a high doc fee."

If true, this must be a federal law, and the "same for everybody" must apply even in states where there is no cap. So individual dealers can differ in doc fees in the same city, but a given dealer has to charge the same amount for every transaction. EDIT: on quick search, I have my doubts whether this claim implying a federal law is true.

Atgard
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Re: New car doc fees

Post by Atgard » Sat May 27, 2017 10:11 am

unclescrooge wrote:
Atgard wrote:Every dealer I have seen adds in some sort of Doc Fee or Dealer Fee or whatever.

Many states now regulate it to some maximum (but no minimum!) amount, and/or make them list "Dealer Profit" next to the fee, so you know it doesn't mean anything really. Just a way for them to shake hands on a price, then tack on something extra at the end for profit, hopefully low enough that you're tired and don't walk out on the deal! So I always ask about it up front, and make clear I am negotiating on the total cost of the car. As many have said, just add it to the sales price of the car (or look at the final out-the-door price).

That said, $210 is not an unreasonable Doc Fee. I just bought a car with a Doc Fee of $379. I was told I could choose to waive that fee and deal with the DMV myself on the title, etc. I appreciated the choice & transparency and actually let the dealer handle the title, transferring registration, FedExing stuff to me, etc. instead of trying to wait in line at the DMV.

Most dealers charge $599 or more and don't let you waive it. But, I just consider that as an add-on to the price of the car. Even if they say "We can't change it" (which is not true, the dealer just doesn't want to), I just say, fine, lower the price of the car by $599 ... or hit this total price however you get there. Like someone said, $20,000 car cost + no doc fee, or $19,800 car cost + $200 doc fee, or $200 car cost + $19,800 doc fee makes no difference.

I note sales tax is charged on the sales price + doc fee... but is not charged on the actual costs for car title & registration.
Or you could have paid $50 for AAA membership and gotten it done free.
I am a AAA member, but I didn't know of any benefit like this... what would AAA have done? It was an out-of-state purchase with the car shipped to me. Would AAA have FedExed me a temp tag, applied for my title & had it mailed to me, and switched my registration from my old car to new?

SixAlpha
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Re: New car doc fees

Post by SixAlpha » Sat May 27, 2017 1:26 pm

Our local CarMax doesn't charge any doc fees, which was a pleasant surprise when I bought my Mazda from them last year. It was listed ($200) on the window sticker, but when I asked my sales guy about it he said, "yeah, CarMax says we have to list it, but we never actually charge that fee here. We just eat it." Sure enough, it was absent from the final invoice... there was a line item for it that said "$0".

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dm200
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Re: New car doc fees

Post by dm200 » Sat May 27, 2017 2:10 pm

Years ago, when we bought a new Chrysler minivan, I told the salesman that the "gross receipts tax" could not be mandated to be paid by the customer, although it could be. He told me that he saw I would not give in and that he could never get the dealership to give in -- so he reached into his wallet and handed me the $50 (or so) in cash if I signed the deal. :)

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Uncle Pennybags
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Re: New car doc fees

Post by Uncle Pennybags » Sat May 27, 2017 6:20 pm

dbltrbl wrote:Doc fees are everywhere. I have paid as little as $40.00 to as high as 250.00. Pay 210 and move on.
How about the sales hustlers moving on and getting an honest job? I was reading about economic rent and how it contributes nothing to society. Selling cars is "rent" to the max.

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plannerman
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Re: New car doc fees

Post by plannerman » Sat May 27, 2017 7:47 pm

SpringMan wrote:Thanks for the replies. The model I was looking at had incentives, 4000 for cash, 6000 if financed. I could finance as little as 6000 and still be eligible for the 6000. The rate was 4.9% and I was told after 90 days I could pay off the loan with no prepayment penalties. Seems worth it but I have salesman trust issues.
Read the contract! I was told the same thing at a Nissan dealership. I read the contract and there was no such 90 day exclusion. I went home and paid off the balance in a couple of days.

plannerman

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ClevrChico
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Re: New car doc fees

Post by ClevrChico » Sat May 27, 2017 8:11 pm

I negotiated a price with the dealer online. Come paperwork time, the doc fee was added to the agreed price. I refused to pay, they simply reduced the price of the car, but kept the doc fee. (Apparently they can get into trouble if the doc fee is not consistent.)

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Uncle Pennybags
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Re: New car doc fees

Post by Uncle Pennybags » Sat May 27, 2017 8:50 pm

ClevrChico wrote:I negotiated a price with the dealer online. Come paperwork time, the doc fee was added to the agreed price. I refused to pay, they simply reduced the price of the car, but kept the doc fee. (Apparently they can get into trouble if the doc fee is not consistent.)
Same thing happened to me. The dealers must have to take a blood oath upon being awarded a dealership that they will never ever under no circumstances eliminate the "doc" fee.

SimonJester
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Re: New car doc fees

Post by SimonJester » Sat May 27, 2017 10:15 pm

I have avoided the hassle of this on the last three vehicle purchases by starting and continuing all my negotiations as out the door prices.
I simply state here is what I am willing to pay out the door and let them figure out how to make it work between fees and sales tax.

It also saved me time as I was out the door in under two hours on each deal...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

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