carcostcanada.com recommends offering a 3-6% markup on the wholesale price, but is that for the out-the-door price (including "documentation fee", anti-theft etching, etc etc) or the price before all the extra fees?
Wholesale price: $22,125.00
Dealer *Advertising *Charge *(DAC): $300.00
AC tax: $100.00
Here's what the dealer offered in an email:
+ 1595 Freight and PDI
+ 545 Other fees---I must add $365 here due to : AC levy 100.00, Tire recycling levy 20.00,
+ 365 Documentation fee 395.00, Road hazard warranty on tires/rims and anti-theft etching 395.00
+ 63.05 I must add this as we put on locking wheel nuts
+ 159.95 Block heater
+ 135 Installation of block heater (I had to add this because I assumed you wanted it installed!)
- 1000 The dealership will match the manufacturer's discount!
+ 1284.75 GST
$27,042.75 New sale price total"
Are these extra fees legitimate? I would rather just negotiate the OTD price and not worry about extra fees being added on after, but I'm wondering what would be a reasonable including all that stuff?
Jan 23rd, 2013 02:48 AM #1
- Join Date
- Jan 23rd, 2013
Reasonable offer for out the door price?
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Jan 23rd, 2013 08:46 AM #2
- Join Date
- Oct 6th, 2009
From seeing the dealer ad fee I am assuming this is a Subaru? I did a lot of research into that and it is sadly a legit fee that Subaru charges to the dealer. Well its legit in that Subaru charges the dealer and the dealer has to pay it. Not legit in that Subaru breaks it out separate.
OTD means the amount you cut the check for including tax. My OTD offer (before tax since I do not know your province) would be $23582 (once again PLUS tax)
Basically Cost + 2%
- Manufacturer 1000 discount.
That leaves another 2-300 for you to "bump" your offer before reaching 3% markup.
I would totally ignore the doc fees, wheel locks etc. If they need to "take them off" to meet your OTD price they can. It would cost more in labour to remove 20 wheel locks and replace them with factory lugs than the actual locks cost the dealer.
Doc feees etc are just profit padding. Don't talk about them it allows them to claim it "can't be removed from the sales sheet" you don't need it removed leave it on there just so long as my OTD prioce is what I want.
The only thing you should give a profit on is the price of the car (not freight or wheel locks or doc fees) The only fees included in your OTR calculations should be govermnet mandated like Air tax.
Jan 23rd, 2013 09:24 AM #3
- Join Date
- May 9th, 2005