I am interested in a used vehicle that is for sale at a GM dealer in Texas. The price is agreeable, but the dealer is trying to tack on several fees:

- $150 doc fee;
- $100 (approx.) inventory tax; and
- $131.00 license fee (although it will not be licensed in Texas as I live in Ohio).

I HATE doc fees, but understand they are part of the game. However, I'm having real trouble with the other two. Even assuming that the dealer is being assessed this inventory tax (which I doubt), such a tax should not be directed passed on to the consumer (I'll bet no other type of retailer tries this). Texas statutes fail to provide support for the "license fee," at least in that amount.

So, my question is for Texas residents or those who have bought a vehicle in that state: are these fees typical?

 

Yes those are typical. As for the licensing fee, in Texas, each vehicle, new or used has to pass the state safety inspection whether if it's titled in Texas or not. You may want to ask them how they handle out of state taxes and registration. If they are a large reputable dealer, they should have a 3rd party company that will calculate those fees for you in their deal.

 

I’ve seen ticky tack fees many times higher than that.
On my LS460 which I bought used, I just negotiated an out the door price for my car. Final cut-the-check price including taxes and everything. No surprises.

 

$380? get over it and get the car.

 

LOL, that's what the dealer says!

In other circumstances, I wouldn't be concerned about it. However, here my interest started when it was listed on both the dealer site and third-party sites with a price of $29,292, a WAY WAY low number. After a brief email exchange, I sent a very formal message accepting their offer to sell at that price. This message was ignored and later that same day the vehicle was re-priced at $39,189, the dealer later claimed the first number was a "misunderstanding" (which, no doubt, it was).

Because $39,189 was still slightly on the low side (the unit is less than a year old and has fewer than 10,000 miles), interaction later resumed. During that time, the sales manager made a statement to the effect that they make very little on used cars, a patent falsehood.

From what I tell, neither the "inventory tax" fee nor the "license" fee is fully supported in Texas law as claimed by the dealership. At best, there seems to be some basis for them in part.

So, the issue with the fees is not so much about the money, but about having some trust in the word of the dealer. This seems essential in a long-distance deal.

 

I know how you feel, but these fees are rather cheap, I have paid over a grand for doc fees and title etc. (no tax and tax that's extra) but usually I was getting a good deal on the car so I didn't care.

 

Call his bluff and tell him you'll buy the car out the door less 380 and see what he says. If he doesn't just walk, there's plenty of deals to be had out there. I love the buying experience and walking if the deal isn't right. I bought my 18 GS new in Texas and the dealer was the cheapest in the nation. We agreed on price before I flew in to pick it up then he added the smuck fees on top of agreed price out the door. I told him that was ok with me and I'll just buy another one in Arizona. He changed his tune real quick and sold me the car at agreed price.

 

Thanks, charley95, but I already went that route without success.

 

also in texas you pay for 2 years of registration up front which is $75/year because you dont have to get an inspection for 2 years

 

Be happy the car is not in FL, the state of the $1k Doc fee. In the end, if the car checks all the boxes and the overall price is good, I wouldn’t lose sleep over couple hundred $$$.

 

One of the things that pleasantly surprised me when I bought my LC at Lexus of Lincoln in Nebraska was the complete absence of fees. I'm in Arizona so had to drive home. They supplied me with 30 day temp tags at no cost. The price I negotiated over the phone was the price I paid. Good thing too, I flew in with a friend with a check already made out for the negotiated amount, less the rewards on my Lexus credit card. Absolutely no hassle. They took my personal check with no questions asked. Truly my best car buying experience ever

Lou

 

Tell them your purchase comes with a $410 "Purchase Fee" which cannot be waived.

 

Well, the question is academic as the vehicle has sold. It's just as well - I swore off black vehicles after selling my LS 430 last summer. Thanks to all who chimed in.