Is a "processing fee" legitimate or a rip-off?
I don't look at it as getting screwed. What's $289 after it's been financed? It may make your payments go up five or ten bucks. These guys don't make that much off of each sale. If I like the car and I think it's worth the price they're asking what's the big deal? I'm not one of those guys to walk into a dealer and say "You're not making any money off of me." They're there to make money. They're doing their job.
I guess I'm just too nice a guy...
I guess I'm just too nice a guy...
cdelena- Just wanted to let you know that salespeople at auto dealerships do NOT get paid a salary. They are paid on straight commision- if they do not sell -they don't get paid. Many dealerships will pay a draw against commision which means it will be taken out of the commisions they do make that month.
Yes the processing fee is dealer profit , and yes almost all dealers across the country charge it. They range anywhere from $40.00 to $699.00. I'm sure we can all agree that nobody wants to pay anything more than we have to, but a dealer can not remove it from the paper work. If it is pre-printed on the buyer's order it cannot be struck thru. So either way it will be paid for in the end.
Yes the processing fee is dealer profit , and yes almost all dealers across the country charge it. They range anywhere from $40.00 to $699.00. I'm sure we can all agree that nobody wants to pay anything more than we have to, but a dealer can not remove it from the paper work. If it is pre-printed on the buyer's order it cannot be struck thru. So either way it will be paid for in the end.
Originally posted by derwood03
cdelena- Just wanted to let you know that salespeople at auto dealerships do NOT get paid a salary. They are paid on straight commision- if they do not sell -they don't get paid. Many dealerships will pay a draw against commision which means it will be taken out of the commisions they do make that month.
cdelena- Just wanted to let you know that salespeople at auto dealerships do NOT get paid a salary. They are paid on straight commision- if they do not sell -they don't get paid. Many dealerships will pay a draw against commision which means it will be taken out of the commisions they do make that month.
Originally posted by derwood03
I'm sure we can all agree that nobody wants to pay anything more than we have to, but a dealer can not remove it from the paper work. If it is pre-printed on the buyer's order it cannot be struck thru. So either way it will be paid for in the end.
I'm sure we can all agree that nobody wants to pay anything more than we have to, but a dealer can not remove it from the paper work. If it is pre-printed on the buyer's order it cannot be struck thru. So either way it will be paid for in the end.
If I charged a processing fee for my trade in, could I explain it this way too?
Yes, just about all dealers have it in some shape or form. But just like everything else about a car deal it's negotiable. Even though it is pre-printed on the buyer's order and often built into the computer system to automatically add it into every deal, they can give you a equal amount off the purchase price to compensate.
Still, most dealers in the Dallas/Ft.Worth area charge a pretty nominal fee (about $50) for all the paper work. Seems relatively harmless and not really worth the haggling to me to have them knock this off the deal. Now if it was 3, 4, 5 hundred bucks?... Yeah, I'd be pitching a royal fit.
Still, most dealers in the Dallas/Ft.Worth area charge a pretty nominal fee (about $50) for all the paper work. Seems relatively harmless and not really worth the haggling to me to have them knock this off the deal. Now if it was 3, 4, 5 hundred bucks?... Yeah, I'd be pitching a royal fit.




