Roto,

Processing Fees are standard issue for any type of purchase - whether that be lease, cash, or payments. As far as taxes, tags, licensing (also known as TTT) go: In the United States each State has its own tax and DMV fees. Taxes vary from 3 - 9% and I've seen DMV fees as high as $300!

For example: Virginia

Tax 3%
Gross Reciepts Tax .02% (if applicable)
New License Plates (yes, we have two ) $28.50 USD
Title $10.00 USD
If a dealer does DMV work for you there is a $11.00 filing fee (not a Dealer's fee)


Maryland carries a 5% tax
North Carolina has the same tax, but higher DMV fees
Some parts of Florida, New York, and California carry that 8 - 9% sales tax

 

Just pay the dealer fee! I understand that it is just profit, but there is more to the price of a car than just the price the dealer paid for the vehicle. If a dealer sold every car at invoice, as some have said already, they would definitely go out of business. Everyone forgets that the dealership has to pay for advertisement, water bill, electric bill, etc. Obviously they have to make some sort of profit to atleast pay for that! Anything above and beyond those bills and the cost of the car is actual profit.

The way I see it is if your salesperson was honest, he treated you fair, and he has given you a fair price, then why wouldn't you give him the business? You are telling me you would really take your business elsewhere just because you have to give your dealership that will be warranting your car, serviceing your car, and hopefully taking care of you after the purchase of your vehicle just a little bit of profit?!!!

And lets not get into commission. A salesman has probably already spent his $100 mini-commission that he made off selling you that car, but you get to reap the benefits and pleasure out of that car for 3-5 years! Who's the real winner here?

 

Not sure how this "fee" business works where you are, but here, it has little to do with the saleperson. It's something that happens when the deal is being finalized with the business manager (or accountant) of the dealership. I don't begrudge him for trying to make an extra buck, that's his job, but noone should begrudge the buyer for trying to save a buck, especially when another deal can be had for that much less.
In regards to service and warranty work, you do not have to go to the purchasing dealer for any of this. You are doing them the favour if you do. They make money from the servicing of your car. When they do warranty work, they get paid from Honda for doing that job that they otherwise would not have.
And don't believe that a dealer will go out of business if they sell their cars at invoice. Most people do not realize that there is a big gap between "invoice" and "dealer cost". There are many factors that contribute to easing dealer cost. Factors that most consumers don't ever find out about.

For example, when the MSRP of an S2000 was $48,000.00 (in Canada), "invoice" was under $46,000.00. Dealer cost (with hold back and a few other things they don't like to tell you) was $43,000.00 (or less). Don't ever think they are doing you a favour for selling you a car at invoice.

 

xviper you are correct about invoice not necessarily being dealer cost. There are probably about 3 different "invoice" numbers for each car. Obviously the dealer did pay something for the car though, and from my experience, many people already know about dealer cash and holdback, etc to a certain extent. Anyhow, it doesn't matter what you show the customer as invoice, most of the time they won't believe you. You are also right saying you don't have to go to the place of purchase to service your vehicle, although most people that had a good experience purchasing their car slowly but surely become more and more comfortable with the dealership. Wouldn't you rather become comfortable with a dealership near you, besides if you ever have a problem with a different part of the dealership (i.e. service, parts body shop) you have a salesperson to go to for help, and a good salesperson WILL help you out as much as possible? The point is, for you to spend 3 hours with a salesperson, he treats you fair and honestly, then you go somewhere else just because some other persons price is $300 less on a 32000 dollar car is straightup CRAP (my opinion of course)! As for me, I would pay a little bit more to deal in my home town and to deal with a respectful salesperson that is knowledgeable.

 

vrod, you make some very good points too. A good saleman deserves to make the sale, no doubt about it. And yes, he can be your friend in time of need later on. However, that same salesman can be "handicapped" by a dealer whose policy is to make that extra few hundred bucks, ruining any relationship he has developed with the customer. I have also found that in most dealerships, many of the sales staff are quite transient. Only the "core" bunch can be considered "there for you" later on down the road.
I have actually never gone back to the same dealer of purchase for after sales service (back in the days that used to go to the dealer for service). I found the "next" dealer was very happy to see me to get my business and was just as likely to develop a "relationship" with me. "Service" (and Parts too) tend to be a "sub-division" of each dealer and they "strive to please" not just those who buy at that dealership but for all who cross their threshold. It's just good business sense.

 

I just got back from the local Quikstop, a six pack of Budwiser was $4.95 plus a $289.00 processing fee.

I can't imagine why car dealers ever deserve such criticism.

 

A little extra info...

After reading through this thread I looked up the fine print on our buyer's order. There's a disclaimer noting that the Doc Fee has a $50 cap by law in the state of Texas. I guess enough people complained about discrepencies from dealer to dealer and deal to deal. So the state stepped in and pretty much legislated an even playing field for all.

Now the only issue for a buyer might be getting the dealer to waive the fee. But at least it's spelled out in black and white and the customers won't get blindsided by some shady dealership.

 

I work at a Honda Dealership and as much as I know we dont charge a processing fee. However sometimes customers are getting things a little exagarated. I mean some people (like 40 percent) try to pay less than what the dealership paid, another (40percent) wants to pay excatly what the dealership paid and say I dont car how you pay your bills, or pay the rent here or how you powered that truck which brought my car from japan ( trucked from japan?? ) all the way here. I dont care if the porter in the back washing my car for my own enjoyment wont get paid, I dont care if the salesman stayed outside and waited for me to arrive 3 hours in the cold took me to a test drive shoved me eveything about the car, got it cleaned filled up the tan and finished up the paperwork and listened to my bullsh*t, about how I saw that little chip under the car and the new car needs to be flawless since I have paid sooo much money for it. I also dont care about the ones that I have went to the dealerships and jacked them around wasted their time by driving cars around for test drive purposes only while I am waiting for my wife to come out of the mall. I dont care after he did all this he couldent pay his mortgage or buy enough food for his family.
Hey maybe since customers care so much less about the seller it self , that seller stopped caring about the customer too. If you are getting packed on payements, processing fee or other bs dealercosts, its your own fault that you havent let sales people make enough money to surive and they had to come up with other stuff.
Everybody has bills everybodys gotta eat, and belive me no one has to starve so you can drive an s2000 around $5 less a month.

 

The way I see it is this: The dealer fee is here in my state and I have to pay it, if I want a car. Like other's have said before, this fee cannot be taken off, but the vehicle can be discounted an ADDITIONAL amount to offset that fee. If you look at the big picture though, if there were no dealer fees, then vehicles just wouldn't be discounted as much; plain and simple.

 

Uhhh, so you're telling me 5/mth is going to matter to a dealership? I don't think so. The problem lies with the owner of the dealership if his employees are starving, not the customer.