Finding The Perfect Car

Finding The Perfect Car

Reduce The Cost Of Your Car By Negotiating These Dealer Fees

by Julian Moya

Many people spend a great deal of effort negotiating the price of a vehicle with an salesperson but still end up paying more than they want to due to a variety of fees that show up in sales contracts. Knowing which fees you can negotiate and which ones you can eliminate altogether can help you save even more money on a new or used vehicle. Here are some dealer fees you can reduce to further decrease a vehicle's price.

Preparation Fees

In general, dealerships prepare vehicles so they're ready to drive off the lot. The amount of time and effort devoted to making a car or truck presentable varies though. Most new vehicles have already been prepped by the manufacturer, and the dealership doesn't have to do a lot, if anything, to them. Used vehicles, on the other hand, may require more effort to prep. However, the fee for this service remains the same, which means you could potentially pay a lot of money for a minimal amount of effort.

It's much easier to negotiate this fee for a new vehicle than a used one because you don't know what the used car looked like when the dealership received it. Regardless, it's worth the effort to negotiate with the salesperson to get this fee reduced.

Delivery and Processing Fees

Auto manufacturers charge a fee to deliver their cars to dealerships, which dealerships pass onto customers. This is a standard fee that's typically built into the vehicle's cost and is always listed on dealer invoices. However, some dealers will tack on an additional amount to this cost for a variety of reasons, such as for transporting a vehicle from one lot to another.

You can find out how much an auto manufacturer charges for delivery by going to the company's website. If the amount on the invoice differs from the amount listed on the manufacturer's site, it's safe to assume the difference represents some type of dealer fee. Indicating to the salesperson that you know how much the manufacturer charges for delivery may lead to the person removing the added amount.

Dealerships also charge a processing fee for handling the paperwork related to the sale. Also known as documentation fees, this cost is sometimes regulated by state law. For instance, dealerships in California can only charge $80 for processing fees. In states where these fees aren't limited by law, you can expect to pay a few hundred dollars (e.g. $670 in Florida).

If you live in an unregulated state, it may be worth the effort to negotiate a discount on the processing fee. Alternatively, you can renegotiate the price of the vehicle to compensate for a high processing fee.

To learn about other fees dealerships charge or to purchase a vehicle, contact an auto dealer in your area.

For a Toyota dealer in your area, click on the link or do an online search. 


About Me

Finding The Perfect Car

When I started shopping around for a car, I knew that I wanted something a little different. Unfortunately, I had no idea what to look for, which made things complicated. I visited several different dealerships, but it wasn't until I worked with the right salesperson that I found what I wanted. My salesperson showed me exciting new car models and talked with me about safety features, which really helped me to narrow down my choices. Check out this blog to learn more about finding the perfect car so that you don't have to worry about having buyer's remorse down the road.