Just test drove my first 2009 Fit today. Liked it a lot! No reason to give my review--it wouldn't vary much from others' reviews here...


Anyway, the dealer I test drove at was wanting a $1,000 markup, plus a $700 fee for pin striping, etc... They said no way would they sell for MSRP.

So, I filled out a Costco form at the auto buying website. Shortly later, a dealer called me. He said he can get me a white 2009 auto non-nav Sport for MSRP... Then we got into the final price, and I have a question about a few fees...

17580 (MSRP, including destination charge)
399 (processing fee--what the hell is this??)
567.80 (3.1% Virginia Sales Tax)
58.75 (Tag and Title)
350 (transfer--I got a question below about this as well)

18955.55 (Total, out the door price)


So, the "processing fee"--what the hell is this? I asked him what it was for, and he said it's something on every car they sell, and I would get that anywhere....

The $350 fee--that is a transfer fee. This white 2009 fit is not at this particular dealer. Rather, he needs to trade with another dealer for a white one. No big deal, but why so much? Hell, I will drive it myself, and they can pay me the $350

I wanted to pay MSRP, plus tax, plus title. I will not pay more. Aren't these fees just a way to charge over MSRP while they can state they are charging MSRP???

What kinds of "fees" have you guys paid? Or, if you are a salesman/dealer, what fees does your dealership charge?

 

Ours is called Driver destination charges Roughly $550 if I remember. New cars get this charge also with Tax and Title.

 

Processing fee should be there, but its way too high. Then again, it's a different state. We charge a $55 doc fee in CA for the dmv paperwork.

 

Here in Georgia (at least metro Atlanta area) dealers charge anywhere from 400 to 600 documentation fee, or processing fee, or admin fee (maybe called differently but same thing as "extra profit fee"). We don't have "transfer fee" though, and never heard of it. Our taxes here is twice as much as yours, but eventually I ended up paying slightly less than you do ($18888 for sport auto).

Consumer Reports says that 50 dollar doc fee is reasonable, but question anything above 100. My dealer wanted 600, but he was willing to cut the MSRP almost 400 to accomodate my request. I do have to wait a month but I am in no urgent need for a car.

 

I wish cali tax was that low...

 

I'm paying $599 for a "dealer's fee". It's crap and it seems like the dealers in FL won't budge on it. I'm trying to make myself feel better about it b/c I moved from Canada so the total price is less than I would pay there.

 

DONT give in - its a scam pure and simple. Someone mentioned Costco's auto buying program - its entirely worth the $40 membership fee to join and then use the auto buying program if you're getting jerked around (see https://www.fitfreak.net/forums/2nd-...hlight=Costco). The dealer will lose their accreditation with Costco if they cheat you.

 

I was invoiced for MSRP plus the $599 documentation fee. I don't know how much this Costco program can help me... the closest dealer that accepts the Costco Auto Program is an hour away.

Is it worth it!? Anyone know from experience? I put down a refundable deposit, and the car is due to come in at the end of the week...

 

I've been wrong before but I believe the processing fee and the transfer fee are the same thing. There might be some state specific stuff but this sounds like crap. By the same token sales tax in Lee's Summit, Missouri (stuck up pompous freaks) was 6.725% or about $1300. Whatever, the State screwing you is one thing, if you argue then they'll show you the formulas their using to screw you. I chose to live in stuck up county and that was my choice! I'd prefer it if the dealer at least was straight about and said market adjustment which translates to "they're selling really well and we know we can screw you, HA!" Anyway I think those two fees are duplicates!

 

I've been set on Orange Rev. and one dealer told me if they had to bring it in and I didn't like it (b/c I need to see it 1st), and then bring another colour in (from another dealer) they'd have to charge me a transfer type fee. It was also about $320-350.

 

You ever want them to waive that fee just ask where the car is located and tell them you will go pick it up there instead.

 

Well, no -- for one thing if there's no transfer between dealers then there's no transfer fee. And all these fees have nothing to do with states, it's all to do with the dealership. (Which is not to say that you don't find similar fees at dealerships in the same region, but that's due to competition.)

A processing or document fee is a legitimate charge -- there actually is some paperwork that has to be processed and delivered to the state. And in my state, the dealership has to keep record of the sale for at least seven years. Plus it can involve other charges -- the document fee I'm playing includes the $29 state inspection sticker.

So as others have said, if you're paying up to $100 for a document fee that's no big deal. But if you're paying more, then there's likely some mark-up in there. Myself, I'm paying $300 but I'm OK with that -- I'm getting the car at MSRP and I'm getting exactly what I want (no dealer options), so I'm not going to lose any sleep because the dealer got a couple hundred extra.

And don't waste your time complaining to the dealer about sales tax -- it's not money they get to keep anyway, so you're not going to find a sympathetic ear.

 

I would definitely question both fees. I can only go based on the two stores I have worked for and neither had a doc fee of over $55, and they never charge extra for a dealer trade (not as a fee anyway, sometimes they just stick to MSRP if its a hot car) on top of the car. Btw, ask that dealer if they have a costco program, as you probably know they don't, see if they'll match it.

 

Thanks to whoever suggested the costco plan! My bf got a call and they said they'd cut the doc fee in half... ok great $300, then when I called to find out if we can have a family member's card (neither of us have, but fam does), the guy said he'd give me fleet pricing... i.e. MSRP, no dealer's fee!!!

My original dealer I put down the deposit with is seeing if he can meet that price. Otherwise it's worth the hour drive to save $600!

 

Processing fee, Admin fee, Office fee, whatever you want to call it is additional dealer profit when its over about $75, approximately the office cost for doing the tax, tag, and title paperwork.

Just as the dealer makes a profit on any extended warranty costing more than $800 or so. (go to myhondawarranty.com, according to AN, that Honda dealer is selling extended warranties at cost, so they priced Fit warranties at $400 to 800, up to 8 years and 120k miles).

The 'transfer' fee you describe is because the dealer has to get 'your' Fit from another dealer who wants to make a tidy profit on a Fit he gives up (and probaly will share 0-50 with your dealer since you're paying for it). And part of the cost is having the car brought to yor dealer.

Some dealers trade with each other for nothing and others won't trade at all. (If you think $399 is high, I got $1000 for a six speed Camaro from another dealer and I understood that dealer got $1000 for himself, the buyer paid $2000 for the 'transfer'.)
The only way around that is to find out who the other dealer is and go buy from him. Might risk service from the close-by dealer, however.

The problem with all this is that soimebody else will pay when you don't, so you don't really matter to the dealer. Supply and demand

Nobody ever says car sales is an honest business if they have to back it up. Strictly supply and demand.
good luck.

 

It's a way dealership make money. Most dealerships in Richmond VA charge $399 or higher. Pearson Honda charges $289 processing fee. I am buying from those guys because they are selling the car at MSRP and processing fee is lower at $289.