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That sneaky dealership DOC FEE when buying new cars

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Old Sep 26, 2003 | 11:06 PM
  #1  
chasMAX's Avatar
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That sneaky dealership DOC FEE when buying new cars

Dealers have their so-called "doc fee" which is like gimmicky instant-profit tack-on that they put on the bill after you've done your negotiating. Some song and dance about needing it to pay the detail-crew, the receptionist, sales person, yada yada. It apparently varies from region to region. In some parts of Georgia it's $350. In the Atlanta area, most all dealers are stipulating a $600 doc fee.

So you can imagine, if you negotiate down to get a car at $200 over invoice, then have that $600 doc fee slapped on...you haven't really done so good after all.

But occasionally on the boards I see reference to a $45 doc fee. Who/where has it that low? What are you seeing where you live? Are the people who claim to pay $200 over invoice for a new '04 Max really only dealing with a $45 doc fee? (Once again, I'm NOT talking about T/T/T..tax/tag/title.)

Post it if ya know it..
Old Sep 27, 2003 | 04:36 AM
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Originally Posted by chasMAX
Dealers have their so-called "doc fee" which is like gimmicky instant-profit tack-on that they put on the bill after you've done your negotiating. Some song and dance about needing it to pay the detail-crew, the receptionist, sales person, yada yada. It apparently varies from region to region. In some parts of Georgia it's $350. In the Atlanta area, most all dealers are stipulating a $600 doc fee.

So you can imagine, if you negotiate down to get a car at $200 over invoice, then have that $600 doc fee slapped on...you haven't really done so good after all.

But occasionally on the boards I see reference to a $45 doc fee. Who/where has it that low? What are you seeing where you live? Are the people who claim to pay $200 over invoice for a new '04 Max really only dealing with a $45 doc fee? (Once again, I'm NOT talking about T/T/T..tax/tag/title.)

Post it if ya know it..
It is definitelt negotiable. I've never paid what they initially ask.
Old Sep 27, 2003 | 01:02 PM
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I've never paid a DOC fee, just tax and license and title transfer. But then when I've negioated, I've told them what I will pay for the car upfront. If they don't like that I tell them I'll walk out. Luckily with the Maxima, I didn't have to. But with my eclipse, I walked out of 3 or 4 dealerships before I got the deal I wanted.

Paying the detailer and office people is not your responisblity. Infact Nissan includes money to cover any of those expenses your car might create in the Destination Charge.
Old Sep 30, 2003 | 08:55 AM
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in some states, doc fee is law. Generally, where its required and not negotiable, its alot higher than where they arbitrarily tack it on. 600 is insane. $200 is the highest I've heard. I paid $99 on my Infiniti. : /

Read the post from DFW_infiniti. He's a highly repected/honest dealer.

http://forums.freshalloy.com/ubbthre...27&Forum=UBB25
Old Sep 30, 2003 | 09:59 AM
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Tell them that you want them to include every fee other than tax, title, registration in the negotiated price. This way you don't get raped on their doc fee... which, btw, is the fee they charge for typing up all the documents...
Old Sep 30, 2003 | 02:09 PM
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Originally Posted by TimW
I paid $99 on my Infiniti. : /
The maximum Doc Fee allowed in IL was $52.57.

Check the link out: http://www.illinoisdealers.com/membe...chapter11.html About half way down you'll find this:

"DOCUMENTARY FEE. A DOCUMENT SERVICE FEE IS NOT AN OFFICIAL FEE. A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING JANUARY 1, 1992, WAS $40.00. THE MAXIMUM AMOUNT THAT MAY BE CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF $40.00 WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW." THE DOC FEE FOR 2003 IS $52.57.
Old Sep 30, 2003 | 03:29 PM
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Originally Posted by gmc74
Tell them that you want them to include every fee other than tax, title, registration in the negotiated price. This way you don't get raped on their doc fee... which, btw, is the fee they charge for typing up all the documents...

Great advice!

I did pretty much the same when I bought my 04. We started with a monthly lease payment and worked down from there. I couldn't care less if they discount the extended warranty, the price of the car, or ditch all the fee's. In the end its all about the monthly payment I have to make. Let the dealer figure out where he's going to trim costs from. Makes it easy.

CM.
Old Sep 30, 2003 | 03:56 PM
  #8  
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Originally Posted by CCS2k1Max
The maximum Doc Fee allowed in IL was $52.57.

Check the link out: http://www.illinoisdealers.com/membe...chapter11.html About half way down you'll find this:

Until states regulate this (matter of time) uniformly, dealerships will take advantage people. I argued it.. but it came down to whether I was going to walk out on a G35C over $100. I paid it..
Old Sep 30, 2003 | 06:31 PM
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Originally Posted by CanadianMoFo
Great advice!

I did pretty much the same when I bought my 04. We started with a monthly lease payment and worked down from there. I couldn't care less if they discount the extended warranty, the price of the car, or ditch all the fee's. In the end its all about the monthly payment I have to make. Let the dealer figure out where he's going to trim costs from. Makes it easy.

CM.
You have to be careful doing this, sometimes people end up paying what they can afford, rather than what it is worth... ie, they can afford $500/month, so that is what it magically works out to be. If you are going to negotiate monthly cost, you have to make sure you know what every ((dollar amount * percentage rate) / length of contract) equals or you may get screwed. The dealers like to play this game because when it is all said and done, they can get you to pay more for a car than you would if you were negotiating the actual cost.
Old Sep 30, 2003 | 06:47 PM
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Originally Posted by gmc74
You have to be careful doing this, sometimes people end up paying what they can afford, rather than what it is worth... ie, they can afford $500/month, so that is what it magically works out to be. If you are going to negotiate monthly cost, you have to make sure you know what every ((dollar amount * percentage rate) / length of contract) equals or you may get screwed. The dealers like to play this game because when it is all said and done, they can get you to pay more for a car than you would if you were negotiating the actual cost.
Yes no question about that. It always helps to take a palm pilot with a lease/finance calculator program. Run your own numbers and generate your own accurate payment info.

CM.
Old Oct 6, 2003 | 01:03 PM
  #11  
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Nissan does not have money "built into" the destination charge. It's a destination charge... not a destination-and-miscellaneous-expenses-on-top-of-that-charge. The doc fee does change in different regions and cover SOME of the costs of the dealer, but it's certainly not profit. In MI our doc fee pays for Secretary of State costs and fees... processing the title and registering the vehicle ($40). It's not dealer profit... it's a cost of selling you a car.

Remember, the car business is just that... a business. None of you work for free, so why do you expect car dealers to do the same? If your dealer is being shady, that's a different story... but to ask to waive a doc fee is to ask for an ADDITIONAL discount over what you just negotiated for the car.
Old Oct 6, 2003 | 07:09 PM
  #12  
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Originally Posted by benolin
Nissan does not have money "built into" the destination charge. It's a destination charge... not a destination-and-miscellaneous-expenses-on-top-of-that-charge. The doc fee does change in different regions and cover SOME of the costs of the dealer, but it's certainly not profit. In MI our doc fee pays for Secretary of State costs and fees... processing the title and registering the vehicle ($40). It's not dealer profit... it's a cost of selling you a car.

Remember, the car business is just that... a business. None of you work for free, so why do you expect car dealers to do the same? If your dealer is being shady, that's a different story... but to ask to waive a doc fee is to ask for an ADDITIONAL discount over what you just negotiated for the car.
Dealers usually charge a doc fee in addition to tax, title and registration. The doc fee is not the cost of the title or registering a vehicle, it is a charge for them doing the paperwork.

We aren't talking about the dealer working for free, we are talking about them tacking on fees after the deal is made. When I deal with a dealership, they need to roll all of their fees into the price we negotiate, then the customary tax, title and registration is added on after the deal is made. I am not paying them to fill out paperwork, when I ordered a living room set I paid delivery (destination charge) but I didn't get charged a doc fee for filling out all the paperwork.
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