Buying new car - dealer "sneaky" fees

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Feb 28th, 2018 9:23 pm

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Feb 26th, 2018 3:38 pm

iWatchTV [OP]: Newbie; Feb 25, 2018; 89 posts; 25 upvotes

Feb 26th, 2018 3:38 pm

Buying new car - dealer "sneaky" fees

So I am looking at buying a new vehicle and after looking at some models through AutoTrader (to simply see what is out there), I noticed that some dealerships had additional fees. One dealer had $899 for administrative paperwork, etc, plus glass etching, full detailing (it's a new car!!!!) and all season floor mats!

Now, I understand that I can refuse to pay for the glass etching, detailing and mats (negotiate them out of the deal) but what about the usual $399-499 admin fees? I mean, what are they actually spending here to get the paperwork done? $10 for paper, printer ink and a staple? I'm being serious, is this a fee that I can negotiate out of?

My plan is to first come to an agreement on the vehicle price then opt out of the fees. But I wanted to know if there were some actual fees there that they do indeed pay for.

Thanks

20 replies

Feb 26th, 2018 4:28 pm

redblack: Deal Addict; Nov 11, 2013; 1162 posts; 1521 upvotes; Calgary

Feb 26th, 2018 4:28 pm

Every brand will have a admin fee, best you can do is to negotiate it off the msrp. Dealerships still have overhead costs and staff to pay. I don’t agree with the extra fees on top of the admin fee that they are trying to get away with now like mandatory window etch, all weather mats, tire warranty etc. I would refuse to pay for those.

Feb 26th, 2018 4:35 pm

tim-x: Deal Addict; Nov 8, 2005; 2915 posts; 2048 upvotes

Feb 26th, 2018 4:35 pm

Just find a price after taxes and everything that you are comfortable paying for the vehicle and any add-ons you want. Let the dealer figure out how they want to break it down.

+6

Feb 26th, 2018 4:43 pm

Juyen21: Sr. Member; Jun 20, 2015; 689 posts; 186 upvotes; Place

Feb 26th, 2018 4:43 pm

Always ask for what includes in that hefty admin fee and they must disclose it.

HST + Licensing is extra.

Good luck!

Feb 26th, 2018 5:11 pm

cheapshopper: Deal Addict; Jan 31, 2007; 4053 posts; 3916 upvotes; Richmond Hill

Feb 26th, 2018 5:11 pm

I really have issue with "mandatory window etch"
Just a money grappling BS

******************************************************
Bright side of RFD: Often find good deal
Dark side of RFD: Tons of stuff that I don't need but still got them because of RFD
******************************************************

+1

Feb 26th, 2018 5:32 pm

poleman: Deal Addict; Nov 10, 2015; 2243 posts; 862 upvotes; Monte Creek, BC

Feb 26th, 2018 5:32 pm

tim-x wrote: ↑ Just find a price after taxes and everything that you are comfortable paying for the vehicle and any add-ons you want. Let the dealer figure out how they want to break it down.

This.
All you want to know is the price you end up paying. Tell the dealer to give you the price you need to put on the cheque and he can break it down any way he damn well wants afterwards.
The price you pay is the only thing that's important.

No political content in signatures (Who did I offend?)

Feb 26th, 2018 5:45 pm

aleks: Deal Addict; Jan 8, 2007; 3020 posts; 1563 upvotes; AB

Feb 26th, 2018 5:45 pm

iWatchTV wrote: ↑ So I am looking at buying a new vehicle and after looking at some models through AutoTrader (to simply see what is out there), I noticed that some dealerships had additional fees. One dealer had $899 for administrative paperwork, etc, plus glass etching, full detailing (it's a new car!!!!) and all season floor mats!

Now, I understand that I can refuse to pay for the glass etching, detailing and mats (negotiate them out of the deal) but what about the usual $399-499 admin fees? I mean, what are they actually spending here to get the paperwork done? $10 for paper, printer ink and a staple? I'm being serious, is this a fee that I can negotiate out of?

My plan is to first come to an agreement on the vehicle price then opt out of the fees. But I wanted to know if there were some actual fees there that they do indeed pay for.

Thanks

As others have pointed out negotiate the total price of the vehicle. Until we have legislation in this country about all in pricing, dealers are set to show pricing however they want. Some dealer can show you a lower admin fee, but give you less of a discount than a dealer with higher admin who is willing to drop more on the price. So all in price is key when comparing between dealerships.

Feb 26th, 2018 7:30 pm

DealCanuck: Deal Fanatic; Aug 27, 2014; 7206 posts; 3383 upvotes; Canuckland

Feb 26th, 2018 7:30 pm

Just ask for the on the road price, no stealership fees.

They always try to be sneaky

Feb 26th, 2018 10:07 pm

redflag999: Deal Addict; Dec 13, 2005; 1674 posts; 268 upvotes

Feb 26th, 2018 10:07 pm

redblack wrote: ↑ Every brand will have a admin fee, best you can do is to negotiate it off the msrp. Dealerships still have overhead costs and staff to pay. I don’t agree with the extra fees on top of the admin fee that they are trying to get away with now like mandatory window etch, all weather mats, tire warranty etc. I would refuse to pay for those.

Not true,I just purchased a Honda Clarity and the 1st thing I ask is if there is Admin Fee and my dealer told me there is none

Feb 26th, 2018 10:34 pm

gotglint: Deal Addict; Nov 29, 2011; 1124 posts; 1606 upvotes

Feb 26th, 2018 10:34 pm

RedStrikeCa wrote: ↑ The worst dealer fee is "Fuel surcharge" , which I was charged on a pure electric vehicle. On top of that, the dealer delivered the car to me with 0% charge. They also offered me free oil changes for 1 year which doesn't even apply to my car.

0% charge? wowza... how were you able to get anywhere?

Feb 26th, 2018 11:46 pm

radeonboy: Deal Guru; Mar 22, 2004; 14876 posts; 5750 upvotes; RFD

Feb 26th, 2018 11:46 pm

tim-x wrote: ↑ Just find a price after taxes and everything that you are comfortable paying for the vehicle and any add-ons you want. Let the dealer figure out how they want to break it down.

Agreed, negotiate with OTD/OTR price and nothing else matters to you.

+1

Feb 27th, 2018 8:12 am

speedyforme: Deal Guru; Dec 11, 2008; 10677 posts; 1873 upvotes

Feb 27th, 2018 8:12 am

I hate the admin fees/extras so when we were dealing with this agent (we did not like) we wanted the $999 admin fee/extras gone. He said not to worry about that and just focus on final price (as others have said). So we asked for $999 to be removed on top of a discount for negotiating and he did not budge, so we left.

Went to another dealer, there was no admin fee and no pressure, we asked for $1500 off, they gave us $1000 take it or leave it (in a friendly way of course) and we bought it. Such a happy experience.

I don't need to pad someone's quotas on the admin fees and extras.

+1

Feb 27th, 2018 8:18 am

lamboman: Deal Addict; Dec 20, 2015; 3975 posts; 2212 upvotes; Toronto, ON

Feb 27th, 2018 8:18 am

RedStrikeCa wrote: ↑ It was pretty frustrating. I waited 2 hours to sign the final paperwork, then find out the car has 0% charge. I ordered window tinting so they probably (barely) made it there and back after PDI. Luckily they had a charging station at the dealer. I waited 45 minutes in the car while it charged to get 20 km (10%) range then drove to an Ikea for free fast charging (80% charge in 30 minutes).

Did you at least take the free oil change? lol please do spill which dealership it was so we can all be aware and stay away.

If you like the post or the comment, then don't forget to SMASH that LIKE BUTTON!

Feb 27th, 2018 8:48 am

BigBacala: Member; Mar 1, 2011; 454 posts; 114 upvotes; Stoney Creek

Feb 27th, 2018 8:48 am

I have never paid for or ever been asked to pay an admin fee by Ford.

Feb 27th, 2018 9:50 am

corcoran_chris: Deal Addict; Mar 20, 2005; 2619 posts; 978 upvotes; Maple

Feb 27th, 2018 9:50 am

All depends were you go.

When I purchased my ram in 2017 the dealer was awesome.

They had a 25% factory rebate. I went in with all invoice pricing from unhaggle? And the dealer gave me that price without issue and even applied an employee discount code to the invoice price....and of course applied the 25% factory rebate.

When signing the paperwork I saw a 299 admin fee, I asked about it but decided to not press the issue.

If a dealer is more than fair to you through the entire process, then a small " tip " in the form of the admin does not bother me. They never once tried to take me as a fool or Rob Mr once.

Btw the dealer is hunt Chrysler in Milton.

Feb 27th, 2018 11:52 am

iWatchTV [OP]: Newbie; Feb 25, 2018; 89 posts; 25 upvotes

Feb 27th, 2018 11:52 am

tim-x wrote: ↑ Just find a price after taxes and everything that you are comfortable paying for the vehicle and any add-ons you want. Let the dealer figure out how they want to break it down.

Good point. I'll have a price in mind and use that.
Thanks!

Feb 27th, 2018 2:15 pm

Psychopathetic: Deal Addict; Jun 29, 2010; 1290 posts; 474 upvotes

Feb 27th, 2018 2:15 pm

BigBacala wrote: ↑ I have never paid for or ever been asked to pay an admin fee by Ford.

I wasn't last time either - but I went to a small dealership about 40km out of the city where they have to compete with the bigger dealers,
so they were not including anything like etching, or nitrogen in the tires, or any other crap like that.

Feb 28th, 2018 10:56 am

dec12: Deal Addict; May 6, 2010; 3114 posts; 414 upvotes; Markham

Feb 28th, 2018 10:56 am

It's also on the leasing as well. We managed to get it removed, at the beginning of the lease but was left in at the buyout 4 years down the road.

Feb 28th, 2018 1:52 pm

XtremeModder: Deal Guru; Aug 14, 2007; 12028 posts; 3012 upvotes; Oshawa

Feb 28th, 2018 1:52 pm

RedStrikeCa wrote: ↑ The worst dealer fee is "Fuel surcharge" , which I was charged on a pure electric vehicle. On top of that, the dealer delivered the car to me with 0% charge. They also offered me free oil changes for 1 year which doesn't even apply to my car.

I would have walked away from that dealership if they were adding fees that weren’t applicable to the vehicle or services that also were not applicable.

Feb 28th, 2018 9:23 pm

xrvr: Deal Addict; Sep 30, 2007; 2164 posts; 2425 upvotes; Toronto

Feb 28th, 2018 9:23 pm

And all these idiots are wondering, why people love Tesla business model.

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