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New car negotiations
I haven't purchased a car in over 20 years; so I'm not sure which fees, if any, are negotiable. For instance, a dealer lists (in the fine print) a pre-delivery service fee of $1,298, a tag agency fee of $189, and an electronic registration filing fee of $598 for a total of $2,085.
That seems to be a little steep. Are any of these fees negotiable? Or, are they carved in granite? Reply to the thread or PM me at alfalfa. |
A dealer's pre-delivery service fee is a charge for preparing a vehicle for sale, covering services like cleaning, inspecting, and performing minor maintenance, but it can also be a way for dealers to increase their profit margin and should be questioned, as some of the services are arguably just part of normal business operations. This fee, sometimes called a dealer prep fee.
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A car dealer "tag agency fee" refers to the title and registration fee charged by dealerships to cover the cost of registering the vehicle, getting license plates, and processing the vehicle's title, which are set by the state and are not typically a profit center for the dealer.
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A car dealer's electronic registration filing fee, often part of the dealer's doc fee or processing fee, is a separate charge for the dealer to handle the electronic submission of title and registration paperwork on the buyer's behalf. The fee's name and amount vary by state and even by dealership, as some states have legal limits on what can be charged. It is not a government-mandated fee, but rather a service charge by the dealer.
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So at the end of the day he is saying the $1,298 maybe negotiable. Personally, I would look at certified used and save a few thousand. Interesting your concerned about a few hundred when the vehicle will plummet in resale value by thousands once you drive it off the lot (the unseen cost). Another way to think about saving?
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I just helped a friend buy a car at Hyundai of Central Florida. We paid the MSRP minus a dealer discount of $5,000, plus the sales tax of 6 percent plus a title and tag transfer fee of about $150. No dealer installed options. We didn't pay any other fees. Period. That is the way Mullinax dealers sell all of their vehicles. All of the fees you cited are totally bogus.
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Hyundai's pricing structure and philosophy, generally allows dealers to show customers larger "discounts" than Toyota, Honda or VW. If you don't care about resale value or brand prestige, you can usually get a lot of car for your money, with Hyundai or Kia. |
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In my opinion, you will do better by selling your old vehicle to Carvana instead of trading it with a dealer. |
car buying
Let's forget about fees for a moment. First thing is, how are you buying the car? cash, finance, lease? As you mentioned, you do have a car to trade or sell. Is this correct?
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We have been driving a Toyota or Honda for over 30 years. Last year when it was time to trade cars, I was shocked to see that Toyota wanted 4-10 thousands above MSRP.. So I purchased a Tesla, who does not have dealerships, and thus no ridicules add on added dealer profit fees.
I selected the exact vehicle I want online and was shown the price would be out the door. It had taxes and a tag fee of $495.. I was surprised when a few weeks after the purchase I received a refund of $270 something of that tag fee I had paid. |
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... or where it's apparently prudent to pay Villages Golf Carts, $6000 over MSRP for a golf cart, because you'll get better service, but folks are willing to drive 100 miles away to buy a car, because they think they're saving $300. |
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