Is a "processing fee" legitimate or a rip-off?
Community Organizer
Joined: May 2002
Posts: 11,334
Likes: 218
From: seattle
The more I think about this thread - the more it pisses me off. It's insulting to suggest that someone "won't be able to put food on the table" if customers refuse to pay some bullshit "processing fee"
As has been mentioned previously - if the dealer isn't going to make any money then they will say no to the deal. That would prevent any food from being snatched out of their families mouths.
It's not like the customer is trying to screw the dealer by refusing to pay an additional markup - AFTER a deal has been struck!
As has been mentioned previously - if the dealer isn't going to make any money then they will say no to the deal. That would prevent any food from being snatched out of their families mouths.
It's not like the customer is trying to screw the dealer by refusing to pay an additional markup - AFTER a deal has been struck!
Registered User
Joined: Feb 2003
Posts: 16,231
Likes: 2
From: Kingston, WA
mumble...mumble...mumble...mumble...mumble...mumbl e...mumble...mumble...mumble...mumble...mumble...m umble...mumble...mumble...mumble...mumble...mumble ...mumble...mumble...mumble...mumble...mumble...mu mble...mumble...mumble...mumble...mumble...mumble. ..mumble...mumble...mumble...mumble...mumble...mum ble...mumble...mumble...mumble...mumble...mumble.. .mumble...mumble...mumble...mumble...mumble...mumb le...mumble...mumble...mumble...mumble...mumble... mumble...mumble...mumble...mumble...mumble...mumbl e...mumble...mumble...mumble...mumble...mumble...m umble...mumble...mumble...mumble...mumble...mumble ...mumble...mumble...mumble...mumble...mumble...mu mble...mumble...mumble...mumble...mumble...mumble. ..mumble...mumble...mumble...mumble...mumble...mum ble...
That's about all I have to say...
That's about all I have to say...
Registered User
Joined: Oct 2002
Posts: 820
Likes: 0
From: va beach
i dont think there is a SINGLE salesperson that has ever put money in HIS pocket from pfee. as a car salesman ive never profited from a pfee, i just dont want it to kill my deal.
no matter what a customer is going to pay pfee at my dealersip. the only way a pfee is not paid for is if 399 is taken off selling price of the car. but in the end 399 pfee is still on the contract.
so if my managment takes off 399 to the selling price, THEN i just lost some comission. but if a customer pays msrp plus 399 my comission is ONLY based on msrp.
no matter what a customer is going to pay pfee at my dealersip. the only way a pfee is not paid for is if 399 is taken off selling price of the car. but in the end 399 pfee is still on the contract.
so if my managment takes off 399 to the selling price, THEN i just lost some comission. but if a customer pays msrp plus 399 my comission is ONLY based on msrp.
Registered User
Joined: Oct 2002
Posts: 820
Likes: 0
From: va beach
oh, and pointy is right, when pfee is gone... say bubby to invoice offers
im not taking any of this thread serious, i agree with most of you on this topic, dont worry i do. then again... ive never paid a processing fee.
im not taking any of this thread serious, i agree with most of you on this topic, dont worry i do. then again... ive never paid a processing fee.
Former Moderator
Joined: Oct 2003
Posts: 24,162
Likes: 3
From: Burlington, VT
I hope this thread helps to "educate" some people as to what a processing fee is. I think there are some very good posts in this thread 
Everyone is definitely on the same page when saying (the car salepeople and others) the Processing Fee is a "pump fee", but one that is currently a reality that will be shown on a contract.
Dealerships are businesses and they ARE going to make money. If the processing fee goes away, dealers will still sell cars at their cost (this is capitalism), but there will be another place the money will have to come from. I have no idea where that place will be yet.
I do hope this thread helps some people when buying cars from dealers, and I would like to say this again:
If anyone from S2Ki needs some advice on buying a car, feel free to PM me - I'll do what I can to help
(keep in mind - I will be working for free, and I have a S2000 to feed )
Everyone is definitely on the same page when saying (the car salepeople and others) the Processing Fee is a "pump fee", but one that is currently a reality that will be shown on a contract.
Dealerships are businesses and they ARE going to make money. If the processing fee goes away, dealers will still sell cars at their cost (this is capitalism), but there will be another place the money will have to come from. I have no idea where that place will be yet.
I do hope this thread helps some people when buying cars from dealers, and I would like to say this again:
If anyone from S2Ki needs some advice on buying a car, feel free to PM me - I'll do what I can to help
(keep in mind - I will be working for free, and I have a S2000 to feed )
Registered User
Joined: Dec 2002
Posts: 111
Likes: 0
From: Atlanta
Personally, I believe the transition underway in new auto retailing is going to end up with dealers becoming delivery centers and manufacturers selling their cars to customers directly (cutting out the middleman and pocketing even bigger margins).
Prices will be set by manufacturers or perhaps manufacturers will have to compete for offers posted by potential customers.
Prices will be set by manufacturers or perhaps manufacturers will have to compete for offers posted by potential customers.
Former Moderator
Joined: Oct 2003
Posts: 24,162
Likes: 3
From: Burlington, VT
Originally posted by gas2k
Personally, I believe the transition underway in new auto retailing is going to end up with dealers becoming delivery centers and manufacturers selling their cars to customers directly (cutting out the middleman and pocketing even bigger margins).
Prices will be set by manufacturers or perhaps manufacturers will have to compete for offers posted by potential customers.
Personally, I believe the transition underway in new auto retailing is going to end up with dealers becoming delivery centers and manufacturers selling their cars to customers directly (cutting out the middleman and pocketing even bigger margins).
Prices will be set by manufacturers or perhaps manufacturers will have to compete for offers posted by potential customers.
Ford already tried that - it was a huge failure! The dealers are too politically wrapped in both the local and federal scene.
Registered User
Joined: Dec 2002
Posts: 111
Likes: 0
From: Atlanta
Perhaps, but if I were to bet on who has more lobbying strength, I'd lean towards the manufacturers.
With regards to Ford's efforts, It may have been an idea tried before its time or just messed up by Ford - I really don't know.
I would suggest that you may already be living in this world to a large extent. I think you said you are in internet sales - how many of your customers even know about your dealership before they show up to clinch their deal? I'd guess many would just as soon have the car delivered and not want to even be bothered having to pick it up.
I don't think it would be such a stretch for this to catch on.
Enjoying the debate
With regards to Ford's efforts, It may have been an idea tried before its time or just messed up by Ford - I really don't know.
I would suggest that you may already be living in this world to a large extent. I think you said you are in internet sales - how many of your customers even know about your dealership before they show up to clinch their deal? I'd guess many would just as soon have the car delivered and not want to even be bothered having to pick it up.
I don't think it would be such a stretch for this to catch on.
Enjoying the debate
Former Moderator
Joined: Oct 2003
Posts: 24,162
Likes: 3
From: Burlington, VT
Originally posted by gas2k
I would suggest that you may already be living in this world to a large extent. I think you said you are in internet sales - how many of your customers even know about your dealership before they show up to clinch their deal? I'd guess many would just as soon have the car delivered and not want to even be bothered having to pick it up.
I don't think it would be such a stretch for this to catch on.
I would suggest that you may already be living in this world to a large extent. I think you said you are in internet sales - how many of your customers even know about your dealership before they show up to clinch their deal? I'd guess many would just as soon have the car delivered and not want to even be bothered having to pick it up.
I don't think it would be such a stretch for this to catch on.
Actually the days of delivering a car anywhere but at the dealership are coming to an end too
The Privacy Act is changing all that. I'm sure there are a few dealers who still do this, but as the government tightens those policies - it will surely end.
As a matter of fact - all of our customers know about my dealership before they "clinch their deal" - the Internet is nice, but people still want to touch and drive the car they are about to purchase! Of course, that is arguable - eBay would be the other side of the coin, but that is my opinion.