Avoid Dealer Extortion Fees

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Old 09-20-2006, 01:52 PM
  #41  
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Originally Posted by zendrive
I could give a rats ass about a salespersons family or his income. Buying a car is not welfare, its not a public service. I owe a salesperson nothing more than to treat him with a degree of respect in order to get a fair deal.
^^+1,000 Once you leave the dealership, they could give a rats ass about you too. Well maybe a 2 min phone call days later just to check up on things .

Salesman and the Financing guys are 2 biggest crook that shares the same building. One time a Sales manager pulled the "feeding family" phrase on me:

Manager: You know "so and so" have to feed his family and we have to put lights here at the dealership. Therefor I cannot accept your offer($500 over invoice).

Me: Im sorry but Im here to purchase a car and not being here to feel sympathy for anyone. And if I were to walk out of here without a car then I guess everyone is going to be homeless? I know thats not the case and hope that it is NOT the case for anyone.

Manger:

I got up and left. Just as I step into my car the saleman pulled me back and made the deal.

I understand that everyone wants to make more money but if a salesman cant afford to give up $XXX amount to make the sale then theres nothing for him if a customer walks out. And if hes bitching and whining that he cant feed his family then this is not the job for them. Simple as that.
Old 09-20-2006, 02:07 PM
  #42  
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Originally Posted by S power
Manager: You know "so and so" have to feed his family and we have to put lights here at the dealership. Therefor I cannot accept your offer($500 over invoice).
LOL...Thats the last ditch effort by the dealer to see if your black heart is even beating

Nice work
Old 09-20-2006, 04:32 PM
  #43  
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sorry to hear some of you had such issues. i, on the other hand, bought the car from my pop who just happened to be a salesman at ferman acura here in florida. CAN YOU SAY FAMILY DISCOUNT?
Old 09-27-2006, 12:13 AM
  #44  
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Doc Fees

I went into the Las Vegas Acura today to attempt to negotiate a fair price with the sales department.

My quote included a $599 doc fee. The salesman claimed the doc fee was non-negotiable and "someone" audits the doc fees. If he lowered my doc fee he would have to go back to all the previous sales and change their doc fees too.

I have read numerous quotes from people in a few forums and I have never seen a doc fee near $599.

Thanks for the heads-up on the extortion fees!
Old 09-27-2006, 02:23 PM
  #45  
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In Las Vegas, every dealship will charge you about anywhere from $350 to $600 for a Documentation Fee. It's just one of those thing that happens in this state. Here we go with the $599 Doc to keep it honest.

This is something that is very different from almost any other state out there from what I've seen.

Here in Vegas the dealerships most commonly have a $399 Documentation fee and then a $195 "VTR" program they sell. Effectively making the "fees" just under $600.

It is something that is audited, and it is something that is a little bit different then anywhere else. I'm not sure, and I don't want to sound extremely ignorant, but I believe it has something to do with the lack of state income tax here.

It's not negotiable, and if you're really looking for a "fair" (vs. the old "Give me invoice minus holdback") price on a car, we can usually make the fees as painless as possible. We have to charge it, but we can make up for it in other ways.
Old 09-29-2006, 08:27 PM
  #46  
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Originally Posted by Mizzeaux
It's not negotiable, and if you're really looking for a "fair" (vs. the old "Give me invoice minus holdback") price on a car, we can usually make the fees as painless as possible. We have to charge it, but we can make up for it in other ways.
This isn't the post to go into detail about the theory of supply and demand with respect to pricing in a free market. There is no way the small profit margin between invoice and MSRP can cover the fixed costs, commissions, and interest carry of a car dealership. I doubt many salesmen know the true structure of dealerships' financials. I'm going to assume dealerships make more than that profit margin.

California Doc Fee: $45
Polite salespeople: free
CA out the door price less than Las Vegas retail: free
CA transferring the color combo from another dealership: free
Getting the car for invoice minus holdback without negotiating: priceless

Shipped to my house for $300 net the difference in sales tax.
Old 09-29-2006, 09:37 PM
  #47  
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Originally Posted by Brad
HUH?

Where did I state that I got screwed with those charges?

I didn't get screwed. I've personally seen some dealers trying to pull these stunts. Read some of the replies to my original posting. It happens!

Cynical? No. How about Realistic?

You haven't met some of the dealers I have. I've known some in the business. It's very real in some areas, particularly the San Francisco Bay Area. That said, there are some very good reputable dealers in the area too.

Believe me these tactics are very real to the sucker that's born every day. That's not cynicism.
the tone of your post can easily be taken as cynical. i had a horrible experience at one dealership. but that happens in any business. there's dishonest people out there. most of my dealership experiences have been pretty good. especially the one i purchased from.
Old 09-29-2006, 09:45 PM
  #48  
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Originally Posted by tekn0mage
I just reviewed the comments posted by Brad, and have some difficulty with them.

His comments do not consider the sales person at all. I have worked for almost 7 years now and have found MANY of the "buyer beware" myths to be untrue.

1) The sales person is just trying to make a living, feed his family, etc. -- without the salesman, you wouldn't be able to get the car. Don't insinuate that just because a man is trying to make a profit that he's a scam artist. The salesman's commission is not on the total cost of the car, its on the commissionable gross. Total Price - Dealer Cost = Commissionable Gross. Of the CG, roughly 50% is "Front-End" gross, and the other half is "Back-End". Salesman typically get 10-25% of Front-End gross... which is anywhere from $100 - $300 on most cars. Stop grinding the guy for a few bucks.

2) Do you realize what the average commission is on a new car? Do you even know how much paper work *is* involved on the salesperson's side alone? The average comission is $100-$200... and for that you have to consider after the sale needs as well.

3) How much do you value the car you're buying to begin with? Some customers aren't happy no matter how much they pay. They call that being stingy. If you won't be happy unless you save $100, $200 or more just for principle, chances are you're stingy.

My final thought: don't be afraid to pay for a car. The happiest customers in the world are the ones who pay a little more for their car. The reality is, you're most likely financing the vehicle anyways. Unless you're paying CASH for your car, why should you complain about paying $1 more per month to help a man feed his family?

Unless perhaps your only motive is to get as much as you can for yourself, all the time.

the way salesmen (in almost any sales position i've encountered) often work is by saying things slickly and not including all the information. that's what makes it a scam for many buyers. not all salesman do this, but enough to create the stereotype. my salesman went over those "extras" quickly, and the tone in his voice didn't sound like he ever expected a customer to say yes. that was a positive experience. he knew it was garbage, and just went through it because he's supposed to.

i worked in sales, i know how management tells you to get so many of this and so many of that in a day/month/quarter. salesman get pushy, and commission is often the reason why.
Old 09-30-2006, 11:17 AM
  #49  
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How much is your time worth?

One of the asymmetries is your time. When you to leave, it may cost you more time than the salesperson. Is it worth the driving around for an extra day or two to save the last $100?

Do the math: when you got the "best deal", how much per hour of your time did you save?

But, if you enjoy the process, its another thing.

Personally, over the course of a month, I drove all over Chicago, and walked out after a number of negotiations to get my last couple hundred. I even took my 12 year old daughter with me to learn about negotiating.
Old 09-30-2006, 11:26 AM
  #50  
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Originally Posted by tekn0mage
Joerockert:

You're on one side of the bell curve of buyers that can never be pleased. Along with the thread author.

If the battles in life you choose to fight are the ones where you haggle over pennies on the dollar, I'm sorry to say, but you fall into the category of people I refer to in my above analysis.

It's typical to see just how greedy, scarcity-minded people are the ones who are fueling the fires that we deal with when buying cars. Joe's philosophy: rip them off as they rip me off.

I guess that does have merit, if my world were as warped as yours.
what makes you think he can't be satisfied? just because he's an informed buyer going in, and knows that msrp is a certain number, and invoice is another number, and dealer holdback is another number.....then the salesman tries to make it sound like if they sell it for close to msrp that the dealership isn't making any money on it.

then we all know if you add accessories, they up the profit quite a bit. we know these things, and we use that knowledge to our advantage. if car companies were smart, instead of having customers and salespeople haggle over prices, they'd find some average price....something between the price people that work for deals get and the price that people who don't work for deals get....and just charge that price.

when i worked at circuit city on commission, i knew that if i sold a computer, i made $10. if i sold a printer cable that cost $35, i made $7, if i sold a pack of floppy disks that cost $10, i made $2. accessories is where we made our money. but the way i sold things is i told customers the things they might need (well sir, if you have a cd-r drive you might want to pick up some cd-r's to be able to play with it...here's what we have)....while other salesmen i worked with tried to convince them that they needed all this crap.

there's different approaches. when a salesman uses the pushy approach, it makes the buyer push back and fight harder for a deal, even if it is only $100 difference, because now we don't trust him.

my favorite tactic is the "let me go talk to my manager" move

a friend of mine had that pulled on him at a honda dealership....so he got up and followed him til the guy realized it and said "uh, sir, you're not allowed here"

we all know they just go back there for a few minutes and then come back out with whatever price they already knew.

the bottom line is, there's nothing wrong with negotiating if it's worth your time. before the TSX was even on a boat to america, i got a price of $28,300 with navi, which i consider to be pretty good. i didn't put that much effort into it, didn't haggle, i just said...this is what i want to pay...this dealer offered it to me for $28,500 and i don't want to pay that much or go to that dealer because i didn't like the atmosphere....ryan at open road said "we'll beat it by $200, but that's the lowest we can go kevin, maybe i can do something on the accessories for you on top of that"

you know what, i felt like he was telling me the truth. they couldn't go below that, or his commission would suffer, their profit would suffer (only a little, 3% holdback on a car that didn't sit on their lot for more than 2 days offers them a nice chunk), and the car had just come out so they didn't really need to negotiate.

open road is now officially the dealership i will go to if i get another acura. they sold me on the experience. i woulda bought it for $28,500 there, but they decided to beat the other dealer.

so you say because we look for a deal we'll never be happy? i have to disagree with you. i'm quite happy!
Old 09-30-2006, 11:30 AM
  #51  
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Originally Posted by joerockt
Seriously, how does your arm work with that HUGE chip on your shoulder?

So explain to me how (in my case with my TSX) gettin $2,000 off MSRP equates to "pennies on the dollar"?

Im sure I would have felt so much better had I paid that 2K more

This has nothing to do with greed. I work hard for my money (well, not really ), why would I want to piss it away if I dont have to? If haggling for a car is so bad, then why do dealerships do it? Its called competition, and anytime someone spends thousands of dollars on anything, you should know that your getting the best deal possible. Thats all...I dont buy The sob stories of sales guys not getting paid. Its the profession they chose, and like all professions, you have to take the bad with the good...

So then tell me tekn0mage, are you such a saint that you've never negotiated a price on anything in your life?
the salespeople i know that are honest may make less per car, but guess what....they get themselves lifetime customers, easy referrals, and they sell more cars in a day because THEY spend less time haggling over dollars and just give the REAL price they know they can give. yeah, if they stood their ground and didn't drop that extra $500, they woulda made another $25 in commission, or whatever the rate is, but guess what? why not sell it, move on to the next customer, and hope that they just want to buy. move more cars, make more money, whether they're sold at msrp or not. the SALESMEN are the ones who dictate how much time is going to be spent on a deal. they should be able to read customers and know which ones are looking for deals and which are just gonna lay the money down.
Old 09-30-2006, 11:35 AM
  #52  
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Originally Posted by Alin10123
Ok...
So in my case what would you have done?
In Atlanta, iv'e called all of the dealers. They all are selling at close to MSRP. Even when i walked in ready to buy. The best deal at the time was barely $300 off MSRP. This went on for weeks after visiting all dealers around Atlant aand even towards the end of the month.

I finally got a little group buy together and one dealer was willing to come off. I finally got it for $28000.
When taxes and everything came out to $30,100. i asked to be at $30,000. They even refused that.

What would you have done in my case about the $350 doc fee? They wouldn't even take $100 off, why would they have come off of the doc fee?
well it depends on how bad you want the car. if you can't use another acura dealer as leverage, make it sound like you'll just buy a different car. just "act like you don't need the shit, then they give you the shit for free"
Old 09-30-2006, 11:39 AM
  #53  
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Originally Posted by Godwhacker
The point for me is that once the price is agreed upon, thats the deal. Adding fees and other such baloney should negate the deal. If a salesman is not comfortable with the price, then he/she should not have agreed upon it. My advice is to walk out if things get fishy, and find another dealer.

The first Acura dealership I went to was very stingy on price (not even close to MSRP). Eventually, however, we agreed upon a price (I wasn't bananas about the price, but I wanted the car). I then went to arrange the financing, telling the salesman that I would be back that afternoon, and he agreed to meet me and close the deal. I came back three hours later with the financing in order, and the salesman told me the price was over $1,000 more than what we agreed upon. I immediately walked out.

I traveled to the next closest dealership, about an hour away in the next state. Was treated very well, and bought my car there.

I must not be the only one in my area to have had this experience, as I have seen a few other Acuras from the "one hour away" dealership I bought my TSX from around here. The local dealership is a "mega" dealership (about 10 nameplates, from various GM to Toyota and Honda). In my experience with such "mega" dealerships, they are so big, that they don't give a rats ass about their customers, because they own nearly all the nameplates and are basically the only dealership that is within reasonable driving distance. The dealer I did buy my car from is rather small, but treated me extremely well. Sadly, however, I am seeing more and more of these "mega dealers" cropping up.
there's a mega dealer in northeast pa, motor world, and they didn't treat me like that (though i didnt end up buying there) they seemed pretty reasonable. guess it depends on the place.
Old 09-30-2006, 11:42 AM
  #54  
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Originally Posted by jimby
One way to avoid the whole dealer hassle and rip-off is to use an auto broker. This is the way I bought my car (6MT, Nav) in SoCal. I only went to the dealer to test drive. I told the broker what I wanted, he spent some time looking at inventory lists for the state of California trying to locate the car I wanted, and got it for me for a good price after about two weeks. When the car was located, he flatbedded it to my house and I signed the papers. Total broker commission was $150, but I saved tons of time and didn't have to deal with the dealer at all. I knew all the costs up front before the deal was closed.

This is quite different from having to spend time with a salesman and then the F&I guy at the dealership.

The broker does not have a vested interest in getting a high price; he is working for YOU on a flat rate; he wants to get the best deal he can for you so you'll come back and maybe tell your friends.

My broker put in a lot of work to locate the car I wanted (I talked to him about every other day on the phone during the deal), so I asked him how he can make any money charging $150 flat. He said for every car like a TSX that he has to work hard for, there are a dozen Camrys or Accords that he simply makes one phone call and closes the deal. So most sales are just a phone call or two for him.

Anyway, if you are sick of salesman and dealers, you might try an autobroker. My experience was really good. (BTW, I used to do some consulting for Lexus, so I know how the car biz works.)
good tip, maybe i'll try this next time. it's hard for me to be hands off though...how did you determine it was a "good price"? and i assume you pay the $150 up front, whether you end up buying the car or not?
Old 09-30-2006, 11:51 AM
  #55  
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Originally Posted by trsos
One of the asymmetries is your time. When you to leave, it may cost you more time than the salesperson. Is it worth the driving around for an extra day or two to save the last $100?

Do the math: when you got the "best deal", how much per hour of your time did you save?

But, if you enjoy the process, its another thing.

Personally, over the course of a month, I drove all over Chicago, and walked out after a number of negotiations to get my last couple hundred. I even took my 12 year old daughter with me to learn about negotiating.
that's a valuable lesson for her!
Old 06-13-2007, 07:46 PM
  #56  
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I think that going in to the dealership with a set reasonable price, having calculated prehand with tax and dmv fees, is all you need. You walk in and you be firm, stubborn, and say $30,000 is the final price I will pay. Not a cent more. You can write on your invoice, dealer charge and prep labor fee and all that nonsense, but as long as the total is $30 grand you got my business. If not get up, walk away and they'll run after you. Works for me! All I paid was invoice price, taxes, and dmv fees. Just as I expected.
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