First of all, let`s take a look at all the legitimate fees: when it comes to fees, there are no limits to the imagination of traders. For example, some dealers charge hundreds of dollars to engrave the car`s vehicle identification number in the windshield. While this practice is a useful anti-theft measure, mechanics charge much less than dealers to do so, and you can engrave the VIN yourself with a $20 kit. Police departments and local service clubs sometimes call the number for free. Another expense that merchants sometimes charge is loan payment fees. These are a fee of a few dollars that the merchant charges every time a customer makes a loan payment. No open and honest trader should use this tactic. In my experience, there haven`t been many dealers who have tried to pass on fake fees, but you still have to look for them: the Florida Department of Revenue charges three fees for each car purchase, called Tire/Battery/MVWEA (Motor Vehicle Warranty Enforcement Act). This fee package is designed to cover the environmental impact of car tires and batteries while helping people who have lost money by buying lemons, i.e. inferior vehicles.
In total, you can pay $7 or $8 for this fee package. Some merchants try to charge a fee for e-filing in addition to their documentation fee, but such fees are unnecessary these days, as third-party companies like DealerTrack handle e-filing for merchants. In addition, dealers can add a market adjustment fee of thousands of dollars to the price of the ultra-popular cars that have just been launched. Before buying a car, check the buyer`s order or purchase agreement or any other sales document and look for this type of fee. If there is an item that lists such fees in addition to the advertised price, tell the merchant to remove it because it violates Florida`s Deceptive and Unfair Marketing Practices Act. Just like the price of the car, the price of “dealer preparation” (or whatever your car dealership calls it) is negotiable. Even if they are included in the advertised price, these fees can be negotiated. If a dealer doesn`t reduce or remove it, try the dealer on the street. Remember, they need your business more than they need your car. Dealer Preparation Fee is the fee that dealers charge customers after purchasing a car to prepare a vehicle to leave the field.
This preparation may include checking tires and fluids, removing stickers from the car dealer, and washing the vehicle quickly. This fee can be up to $300. There are certainly legitimate fees over which traders have no control, but some try to replenish their profits by simply inventing fees – much like the “convenience fees” charged by some companies. “The advertised price shall include all fees or charges that the customer must pay, including freight or destination costs, dealer preparation costs, and undercoating or rust protection costs. National and local taxes, labels, registration fees and title fees, unless otherwise provided by local laws or standards, must not be disclosed in the advertisement. “- Section 501.976 (16) of the Florida Act. There are fees that merchants charge that are negotiable. Items such as warranties, underbody coatings, interior coatings, dealer preparations, and advertising fees are all negotiable. You are not required to receive an extended warranty, and this may not cover you for potential large items that could go wrong with a used car. They should therefore be paid attention to and negotiated. The items you include in your purchase are entirely up to you.
Don`t let a trader try to push you into something you don`t want and don`t need. None of these tasks take long, as vehicles are usually in perfect condition as soon as they leave the factory, so the dealer`s preparation fee can be an opportunity to reduce the price of the vehicle. Merchants sometimes include a preparation fee as line items in their pre-purchase documents to discourage you from disputing them, but you can often convince the merchant to reduce them as a condition of your purchase. If you are looking for your new vehicle, be sure to plan for a dealer fee. This fee is added to the price of the vehicle sticker and often changes the final amount you pay. As with any purchase you make, there are certain required fees that you will have to pay to become the legal owner of your new vehicle. These fees are paid at the dealership, so you don`t have to spend time doing more paperwork at the local DMV office. Don`t get me wrong, dealers deserve to make money, but if you`re looking for the best way to save money when buying a used car, it`s best to know what the real game is. To learn more about why used cars from dealerships cost more, read my other article here. When you buy a new vehicle, you are often faced with costs that you expected. While it may seem like the dealer is trying to make a profit by nickel-plating and mitigating car buyers with fees, many of those fees are legitimate because they are required to pay under federal or state law.