If you go to a department store and purchase a $350 camera, besides possible sales tax, $350 is what you pay. Why should buying a car be any different? It shouldn’t.
You should only be paying state-mandated fees, such as sales tax, license and registration. These fees are required to be collected by the selling dealer. Added fees, often referred to as “hidden fees”, charged by car dealers have been commonplace for decades. These fees do not need to be collected, and you should never pay them.
Most common dealership hidden fees:
1- Dealer Documentation Fee
- The majority of car dealers charge a documentation fee, claiming they need this money to cover the cost of preparing paperwork, etc. It is nonsense, why should you be asked to pay the dealership’s employees wages? When I was a dealer I never charged a documentation fee or any hidden fees. These fees can be in the hundreds of dollars. Many dealers price their cars low to appear like it’s a good deal to get customers in the door, but then make up for the low price by charging a $500 documentation fee.
2- Dealer Prep Fee
- This fee is no different than the documentation fee above, once again they are asking you to pay their employee’s wages. The fee supposedly covers the cost of preparing the car for sale. This cost is merely another hidden fee, designed to increase dealer profit, and take more of your hard-earned money.
3- Advertising Fee
- Beyond ridiculous, can you imagine every business you buy from charging this fee? It’s unheard of in any retail business besides car dealerships. There are some new car dealers that are charged an advertising fee by the manufacturer. This is not your problem or a fee you should pay.
The three fees listed above are a small sample of the hidden fees dealers may charge. The complete list is extensive, with many fees cleverly hidden in sales contracts. Don’t be taken advantage of when purchasing a car. We can provide you with what you need to know, including how to counteract dealers’ hidden fees, and how to get a fair deal in a timely manner. Take control of the buying process, the cost of our service can save you hundreds to thousands of dollars, essentially making the cost free.
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