LexusBuyer

I'm in the process of buying a new LS 430 and I have been working with a local dealer who has been extremely reasonable and helpful. However, when we got down to the final numbers he sprung a "fee" on me that seems a little fishy...

I negotiated a price base for the car that included the following:
Invoice +
Dealer Profit +
Advertising Fee

I know what each of these is, and I'm fine with them. However, when I asked him to put it in writing a "dealer service fee" of $500+ appeared. When I asked him what it was he said that pretty much every Lexus dealer in the country has it now, although he admitted it represented additional profit.

So my question is: Is this just another bogus fee the dealer is trying to slip buy or does every Lexus dealer have this?

Thanks for your help.

jahummer

I had to pay it, and always have on everyone I have bought. But knowing that going into the deal I always negotiate for freebies such as upgraded wheels, gold package, tint, wood, etc.

Good luck.

SharpLS-96

That's a B.S. fee unless he means its the "destination charge"! They may have to technically show it on paper work so have them adjust it then in the cars price or throw in $500 worth of free up grades to make up for it like Jahummer stated.

Work them!!!!!

LexusBuyer

Its not the destination charge, that was $575 and it was clear that it was included in the negotiated price. So to revise my earlier list of stuff: Invoice (including desintation) + Dealer Profit + Advertising Fee.

So, what kind of free upgrades make sense for the $500? I can think of trunk mats and wheel locks, maybe splash guards. Anything else?

kreativ

B.S. Just a way to get more profit out of you once the price has been settled on.

If you go to Edmunds.com, you can read more about the advertising fee in one of their car-buying tutorials.

SharpLS-96

Actually, forget those things cause the dealer charges you an arm and a leg for them. Get them later on. They have to come down $500 in the price according to your orginal agreement or your going to walk on the deal. Did you sign any contracts yet? It's total B.S. Don't fall for it. Tell them to give you the car at the original price or your going to another dealer who will match the price if not beat it. The only thing I would say is worth $500 is five free car details from head to toe. Includes hand wash, hand wax, shampoo carpets etc. Figure 100 bucks a pop. That's what I would do. Good luck.

LexusBuyer

Well, my suspicions were confirmed. I talked to another dealer and negotiated an "out-the-door" price excluding tax that was a lot lower than the original dealers price. And there is no "dealer service fee" in this deal.

Thanks for everyones help...much appreciated!