Car Dealership Fees?
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    Car Dealership Fees?

    Went to a dealership to buy a cheap scooter today for $1000. They wouldn't come down on price but I decided to buy it anyway. We put it in my truck and go to do the paperwork but there is a $100 administration fee on top of the sales price. I asked what this was and they said said every car they sell has the same $100 fee. I told them I was not going to pay a 10% fee on top of my purchase. If there was a $100 fee on a $30,000 car it's a totally different percentage and I may not mind. I said I'd but the scooter for $900 and then they could add on the fee but they said no because "It would be unfair to sell these at different prices to different people". (my thought: don't they do this all day every day?) So long story short I canceled the sale, took down the scooter, and drove home.

    Is it normal to see an administration fee for purchases this small? I've read several places don't ever pay this fee if it's not on the manufactures invoice. And is it normal to not to say it's unfair to charge different prices to different people? It was just weird.


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    Re: Car Dealership Fees?

    Quote Originally Posted by mtowncyclone13 View Post
    Went to a dealership to buy a cheap scooter today for $1000. They wouldn't come down on price but I decided to buy it anyway. We put it in my truck and go to do the paperwork but there is a $100 administration fee on top of the sales price. I asked what this was and they said said every car they sell has the same $100 fee. I told them I was not going to pay a 10% fee on top of my purchase. If there was a $100 fee on a $30,000 car it's a totally different percentage and I may not mind. I said I'd but the scooter for $900 and then they could add on the fee but they said no because "It would be unfair to sell these at different prices to different people". (my thought: don't they do this all day every day?) So long story short I canceled the sale, took down the scooter, and drove home.

    Is it normal to see an administration fee for purchases this small? I've read several places don't ever pay this fee if it's not on the manufactures invoice. And is it normal to not to say it's unfair to charge different prices to different people? It was just weird.
    Reminds me of the 2 dollar delivery fee on pizzas that is not actually a tip. I have no trouble tipping, but I hate that they arbitrarily add 20% in delivery fees to my order.



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    Re: Car Dealership Fees?

    If they didn't want to cover part of the fee, they obviously didn't want the sale. I'd have offered to split it with them 30/70 (you pay 30) or told them to take the scooter out themselves for wasting your time.

    The paperwork for selling a scooter is generally much less than the paperwork involved with selling an automobile (assuming you are in IA). If you are in Illinois or one of those government heavy states where scooters require plates, then they are doing about the same amount of paperwork as a car, although I doubt you were financing it.

    For something like that, I'd search craigslist and see what you can find on the secondary market, lots of kids who get scooters at 14 years old get real tired of them when they can get behind the wheel.



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    Re: Car Dealership Fees?

    to me that different though because i have the option of picking it up to save myself the fee. couldnt a car dealership add in that fee on their sales price? i told him i saw the same model online for 15% less with free shipping but would be willing to spend more for a personal sale.


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    Re: Car Dealership Fees?

    Seems odd that they let you load the vehicle before you finalized the deal.



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    Re: Car Dealership Fees?

    Glad to hear you stuck to your guns, and didn't cave. It's a bs fee.



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    Re: Car Dealership Fees?

    Quote Originally Posted by Cyclonesince78 View Post
    Glad to hear you stuck to your guns, and didn't cave. It's a bs fee.

    this. When we were car shopping last year, the dealership fee was different each place we looked. $100 was common but we saw $130 on one (all very similarly priced cars). One dealer said it's a cost to cover all the paperwork they have to fill out. The dealer we eventually bought from said he didn't charge one because they are completely arbitrary. Sure, he could have just built it into the price, but I would prefer that anyway.



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    Re: Car Dealership Fees?

    Why all of a sudden are scooters showing up in my ad bar on the right? I think conspiracy is taking place here.



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    Re: Car Dealership Fees?

    We're you buying a scooter for your daughter or sister?



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    Re: Car Dealership Fees?

    Quote Originally Posted by Cycsk View Post
    Seems odd that they let you load the vehicle before you finalized the deal.
    That wasn't an accident.... They wanted it to be more of a hassle to return it before they told about the extra fee.



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    Re: Car Dealership Fees?

    Quote Originally Posted by uro cy View Post
    That wasn't an accident.... They wanted it to be more of a hassle to return it before they told about the extra fee.
    And to also increase the emotional bond with the scooter. Just like they leave you holding the key to a car when they go to "check with their manager".


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    Re: Car Dealership Fees?

    OK, I am in the car business so I will explain this one to everyone. The state of Iowa forces dealerships to take care of collecting all state fees, taxes, and doing the titling and licensing process for the customer. The state tells dealerships they can charge a fee for the process, usually called a documentation fee, but does not set the amount. Dealerships must charge all buyers the same documentation fee regardless of the amount of the purchase or face stiff fines from the state.

    The state has good reason for requiring dealerships to complete the processes. Unscrupulous individuals would never pay the taxes nor register or title their vehicles. They would steal license plates and drive that way to avoid the expense.



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    Re: Car Dealership Fees?

    makes sense. but I did say lower the price $100 and id still buy it.


    Quote Originally Posted by CycloneRulzzz View Post
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    Quote Originally Posted by hawkeye nation
    If [Iowa] were a good shooting team we could make a run at the final 4.

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    Re: Car Dealership Fees?

    Quote Originally Posted by iowa_wildcat View Post
    OK, I am in the car business so I will explain this one to everyone. The state of Iowa forces dealerships to take care of collecting all state fees, taxes, and doing the titling and licensing process for the customer. The state tells dealerships they can charge a fee for the process, usually called a documentation fee, but does not set the amount. Dealerships must charge all buyers the same documentation fee regardless of the amount of the purchase or face stiff fines from the state.

    The state has good reason for requiring dealerships to complete the processes. Unscrupulous individuals would never pay the taxes nor register or title their vehicles. They would steal license plates and drive that way to avoid the expense.
    Not registering your car can get the dealership in trouble? How so?



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    Re: Car Dealership Fees?

    Quote Originally Posted by iowa_wildcat View Post
    OK, I am in the car business so I will explain this one to everyone. The state of Iowa forces dealerships to take care of collecting all state fees, taxes, and doing the titling and licensing process for the customer. The state tells dealerships they can charge a fee for the process, usually called a documentation fee, but does not set the amount. Dealerships must charge all buyers the same documentation fee regardless of the amount of the purchase or face stiff fines from the state.

    The state has good reason for requiring dealerships to complete the processes. Unscrupulous individuals would never pay the taxes nor register or title their vehicles. They would steal license plates and drive that way to avoid the expense.
    salesman.

    The state doesnt require you to collect a fee. I bought two cars here in Washington and did the registration through the dealer with both. I was never charged a fee at either dealer.

    I was charged the cost of the actually registration with the state but none of that money went to the dealer. I really cant see how that paperwork can be worth $100. Isnt that just the cost of doing business. A store doesnt pass on a administrative fee to the costumers to cover th cost of the business license.

    It is just a state approved way to make some extra money and the beauty is that even if the person returns the vehicle the dealer will still get to keep the fee i bet.



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