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I asked the F&I manager how many vehicles on average sold at their dealership monthly. She said around about 600 combined new and used. Their dealer doc fee on each vehicle is $800 (not including dmv and “other” fees listed for $244). They are basically making $480k per month or $5.7M per year in doc fees alone. That doesn’t include net profit on the front end, F&I product margins, or service and accessories. Dealers are doing just fine in today’s market.
Just because you were willing to pay a thousand dollars in fees don't make the mistake of believing everyone does.
Just because you were willing to pay a thousand dollars in fees don't make the mistake of believing everyone does.
I don’t doubt there is an exception every once in a while but I would take the bet that if there is a doc fee on the paperwork, the buyer is paying it or they don’t buy the car. Dealers would rather lose the sale than scratch that out.
Last edited by Familyman6; 10-09-2019 at 02:19 PM..
I don’t doubt there is an exception every once in a while but I would take the bet that if there is a doc fee on the paperwork, the buyer is paying it or they don’t buy the car. Dealers would rather lose the sale than scratch that out.
You made a claim so why won’t you answer which dealership is moving 600 units on average a month in NC?
Lol. You would enjoy an argument, I’m not interested. I’m about as interested in arguing with you as I am in taking grammar lessons from you, asking for your political opinion, and listening to your fake financial success stories
I don’t doubt there is an exception every once in a while but I would take the bet that if there is a doc fee on the paperwork, the buyer is paying it or they don’t buy the car. Dealers would rather lose the sale than scratch that out.
Illinois' doc fee was originally $40.00 when the legislature allowed it (back in the 90's?), but it has gone up in recent years to about $180.00. I believe it is negotiable, just like everything else. I would pay it providing the rest of the numbers are favorable. But I wouldn't pay an $800 fee without the dealer knocking off at least $600 somewhere else, that's just extra profit. What did PT Barnum say again?
I don’t doubt there is an exception every once in a while but I would take the bet that if there is a doc fee on the paperwork, the buyer is paying it or they don’t buy the car. Dealers would rather lose the sale than scratch that out.
I dealt with a volume dealer in NC who’s doc fee was around $350 and they were 5% below invoice if you ordered from them.
The beauty of dealerships is they’re free to make a sale any way they want. Some would rather a car sit on the lot waiting for the perfect top dollar compulsive buyer, and some would rather make a very small margin and make it up on volume. If you were to buy from a place like Tesla, you would just pay full MSRP no matter what. Some people think that’s convenient but they’re still paying for that convenience just like walking into a dealership and offering full MSRP on any other car.
I don’t doubt there is an exception every once in a while but I would take the bet that if there is a doc fee on the paperwork, the buyer is paying it or they don’t buy the car. Dealers would rather lose the sale than scratch that out.
Any documentation fee listed is simply another point of negotiation. You apparently chose to accept it as listed and are guessing that is the only way to treat it. Dealers make zero dollars on sales they forfeit but still must pay that huge overhead.
Builders reported an average of $16.2 million in revenue for fiscal year 2014, of which $13.2 million (or 81.1% of revenue) was spent on cost of sales (i.e. land costs, direct and indirect construction costs), thus leaving them with a gross profit margin of 18.9% ($3.1 million).
Your trying to compare the guy who makes a home (and manages everyone involved) not to mention often taking the financial risk with the guy who gets fronted on credit a already complete (and advertised for them) complete product (that he can return to the 'builder ') to sell!!!?!?!?e
Any documentation fee listed is simply another point of negotiation. You apparently chose to accept it as listed and are guessing that is the only way to treat it. Dealers make zero dollars on sales they forfeit but still must pay that huge overhead.
You are right, you can negotiate it out of another line item (price or trade) but the doc fees will never leave the worksheet —- so at the end of the transaction you paid for the fees.
You are right, you can negotiate it out of another line item (price or trade) but the doc fees will never leave the worksheet —- so at the end of the transaction you paid for the fees.
I bet you hate Carmax no haggle prices.
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