kenforum

A dealer quoted me a fee (besides tax) of $595 at closing. Is it reasonable and/or negotiable? Sorry if this question sounds silly lol

UCSB

I've never paid one and have been driving new Lexus vehicles since 1994. But, I purchase my vehicles. Are you purchasing or leasing?

kenforum

I am purchasing. This fee should include fees like the dmv registration fee etc. right?

JT4

Since you're purchasing make sure the dealer isn't trying to charge you a bank fee. The $595 sounds like a bank fee you would incur if leasing.

Stereorob

closing fee?? I know my dealer doesn't do this

wasjr

Sounds like what around here is known as a "doc fee" that dealers try to tack on. Some are reasonable ($99-199), but $595 is high. It is always negotiable in that you can walk if they don't reduce or eliminate the fee.

Aron9000

Just tell them that you will gladly pay that fee provided they reduce the price of the car $595. Its pretty much a slimeball way for them to charge you more after you've negotiated and agreed on a price IMO.

yakim

The doc or dealer fee is always collected, no matter what. They may discount the car to give you an impression that it's been removed, but in fact it is profit for the "upper management". And they will always get paid

Allen K

iTrader: (4)

And remember it's the end of the year so the power is in your hands at this point. I'm sure they want to close this deal to count towards their 2015 sales numbers

bitkahuna

iTrader: (20)

reason #5987321 i hate the car sales process...

z2g2gs

I have learned to make my offers as out the door, total money I will give, all cash or with a trade. Then they can but it on paper as they may. I agree doc fees are addition profit they try to add in the business office at closing the deal. Don't give in!

tex2670

Play dumb and ask "What's that?" If it was a DMV cost passed through to you, I think they would make it more clear. A lot of times, in all industries, a "fee" is just a way to boost profit. A "closing fee" sounds like just that. Tell them you will gladly pay it, but you must charge the dealer your standard "Purchasing Fee" of $595 as well.

bitkahuna

iTrader: (20)

great post.

SW17LS

Some states regulate this, and have to disclose it on the vehicle. In MD you will always find a secondary sticker next to the monroney sticker that says "this vehicle's price includes a $199 dealer processing fee not required by law" and that's the maximum they can charge. In VA there is no limit.

mmarshall

Yep...that's true. VA dealers can really get carried away with processing fees, though the VA state sales-tax on a new car is a little lower than in MD to compensate. All kinds of excuses are made by salespeople/dealers to justify these processing fees, but in my view they are (mostly) just added profit....with maybe a small amount of justification at most.

if you live near a state border, sometimes slipping across the border can get you a better deal at a dealership in another state...but keep two things in mind. First, the dealership, by law, is required to charge the sales tax in effect where you live (or will be registering the car), not necessarily that in the state where the dealerships located. Second, some states (like VA) require an official safety-inspection window sticker on each car. Normally a new car sold in that state will come with a valid sticker, but that cannot be done out-of-state. In other words, if you live in VA and buy at a MD dealership to take advantage of the lower processing fees in MD, that MD dealership will also charge you the lower VA sales-tax, but cannot get the required VA inspection sticker for you...nor can a MD dealership do the necessary county/city-vehicle registration/paperwork required in VA. For those, you're on your own...for a price.