Dockside Chat - new car dealer prep fees

havent bought a new car since 05 when i bought the wife a chevy equinox.sat down yesterday to trade it in for a new traverse.agreed to the trade price before starting on the selling price of new car. everything was ok until i saw a dealer prep fee of almost 700$ which killed the deal for me. i didnt mind paying a couple hundred over invoice for the car but wasnt going to pay that much. is this common now or should i just find another dealer. the dealer i had been using for the last 15 years is no longer around i had bought my last 3 rides from the same salesman.

It is a very common expense in deals. I represent a few dealers and have never been able to get that removed either. The dealers are usually offsetting outside expenses that they are required to carry in the deal. My dealer has a $799 fee and I have paid it on every deal.

first of all imho you should be doing at least a couple of hundred UNDER invoice on a Chevy Traverse. i'd be shooting for a lot more, but that's me...

regardless, refuse to pay any dealer prep fee. period. prepping the car is their cost of doing business and in most cases, they're reimbursed by the manufacturer for that. Consumer Reports just had a blurb about this.

-it's a good end-of-month weekend so they might be trying to hit some numbers.
-research and determine fair value for your trade.
-determine invoice on the new car then subtract at least another 3% for dealer holdback, etc.
-subtract the two to get money you'll be out.
-add tax and tag fees.
-there's your out-the-door number.
-say to the salesman, "I'll buy that car right now for $number and my car"... and mean it.
-hold firm.
-wait for all the, "I don't think we can do this..." excuses, for the salesman to go "talk" with his manager, for the sales mgr to appear and give you the same excuses.
-hold firm and repeat..."i'll buy that car right now"...that's what they want, to move that car right now.
-if they say no, grab your coat and hat and head for the door. chances are, you'll never get through it.
-if they do say no, go to another dealer or even better use the internet to send the same offer to multiple dealers xxx miles away. someone will do it.

watch out for added extras or increased finance rate when you get to the Finance Mgrs office too. that's where they'll try to make-up money on the deal. know what the current loan rates are for your credit rating and make sure that's what you get. better yet, pay cash or arrange your own financing before you go in.

good luck and have fun.

Here in MD some dealers put a bump sticker next to the window sticker, I call it a BS sticker. The only thing above the negotiated vehicle price I accept is a $99.00 processing fee, tax, tag and title.

Here in MD some dealers put a bump sticker next to the window sticker, I call it a BS sticker. The only thing above the negotiated vehicle price I accept is a $99.00 processing fee, tax, tag and title.

Yup. We just bought a Hyundai Santa Fe from a place that had that sticker except it was on top of the factory sticker, hiding the factory numbers. It added a "$1400 Market Adjustment"... ha ha, yeah right!

You never pay dealers prep. Maybe a conveyance fee if they do the registration for the DMV - up to 300 is allowable for that here - dealers prep is bull and maybe means a run through the car wash - the mfgr. pays to have the car pre-insected and ready.

These fees pretty much disappeared over the last few years as consumers became better educated.

They have to display the maroney (Mfgrs) sticker by law here - any dealer that doesn't is simply dishonest. ADM (additional dealer mark-up) is legal but as said above a scam unless its a really unusually rare market. ADM is often used so they can take it off when thet close a deal to make you think you got a deal.

You did good to walk away - I am surprised they didn't stop you.

It is a very common expense in deals. I represent a few dealers and have never been able to get that removed either. The dealers are usually offsetting outside expenses that they are required to carry in the deal. My dealer has a $799 fee and I have paid it on every deal.

$799???

I guess it true a sucker is born every minute!!:rofl::rofl:

Ive paid 100 bucks or so for the paperwork, but that is it.

In the old days it was fabric protection, paint sealant, undercoating, pin striping, or other dealer do-dads all added to increase their bottom line. Toyota regularly pushes the Toyo-guard package which includes vin number engraving, paint sealant, waxy spray on the undercarriage and maybe an oil change or two...but it adds $699 to the deal. Not much of a deal, but something the dealers are hard pressed to ignore even if you push the point. Nowadays those "processing" fees seem to have replaced the do-dads..
If they do both, it's time to run.....

Darn I am going to have raise ours. We charge $49. At that got us into a class action law suit for practicing law.

I am in the business and I could not justify these big fees. I would walk into the store ask the fee and if it is stupid high walk out. I am sure there are stores in your area that will work with you. If not pm me and I will help you.

As for the Traverse I own one. So that should tell you what I think of the vehicle.

$799 sounds pretty ridiculous. I am a Chevy dealer in South Carolina with no fees at either of our stores. Most dealers around here are $150 to $500. Best of luck to you. You will love the new Traverse.

prep fee is the car wash performed by the illegal alien out back.

It's PROFIT!

They have to display the maroney (Mfgrs) sticker by law here - any dealer that doesn't is simply dishonest.

ADM is often used so they can take it off when thet close a deal to make you think you got a deal.












Not only dishonest, but illegal!

And it's Monroney. Named after the senator that came up with the idea (and a great one at that). I wish boats and RV's had to have them...


The ADM sticker reminds me of the "boat show pricing" scam. Same difference... Jack up the price then show a "discount" to make the timid, gullible sheeple feel happy about their purchase.

I bet there are a lot of (former) dealers that wished they'd treated their potential customers a little better right now... ;)


As far as any "prep" fee goes in the auto industry, I treat it like the age-old "freight and prep" scam in the marine industry. It's not only added profit, but it's an insult to the intelligence of even a grade-school educated adult buyer. :rofl:

But sadly, there are plenty of buyers that fall for it. Their loss... :trout:

The problem is so many use "doc" fees now that on a vehicle that is mildly popular, they'll drop the deal before they drop the doc fees.

I had two different Toyota dealers do this to me a few weeks back on a new Tacoma. They both had fees, and neither one would drop them. In the end, I got one dealer with the truck I wanted to drop it from $289 to $189 to match another dealers' fees..but they had said "nope" won't sell it without fees" before I walked out on them the first the first time a week earlier.

I'll add getting internet pricing is the way to go. I got internet pricing from from about 8 SC Toyota dealers dealers for the exact truck I wanted. It came down to a battle between the local dealer and one 4 hours away. Haggling was minimal--and over for the fees stated above. I didn't even have to deal with a sales idiot. I ended up getting Invoice-minus holdback+fees, which for a Tacoma (that never has incentives), I felt was pretty good.

I'll add getting internet pricing is the way to go. I got internet pricing from from about 8 SC Toyota dealers dealers for the exact truck I wanted.










Yeah, good advice! :thumbsup:

Skip the lot lizards and make an appt with a true Fleet Manager, then get your "no B.S." deal. Their pay scale is set up that they can make a nice commission even without ripping your head off on gross profit, plus they like their deals "short and sweet", not "long and wearing down" like the retail blue suede shoe boys and their closers... ;)

Plus, they don't make you jump through two hours of hoops or resort to making you get on your knees to see the factory invoice.

Just make sure that when you call you are actually talking to the F.M. and not just Abdul who is claiming to be a mgr but is actually a slimey salesmen taking the phone ups. :nono:

Buying cars is such fun!!! :rofl:

refuse to pay any dealer prep fee. period. prepping the car is their cost of doing business and in most cases,:thumbsup:

I call it a BS sticker. The only thing above the negotiated vehicle price I accept is a $99.00 processing fee, tax, tag and title.:thumbsup:

You never pay dealers prep. Maybe a conveyance fee if they do the registration for the DMV - up to 300 is allowable for that here - dealers prep is bull and maybe means a run through the car wash - the mfgr. pays to have the car pre-insected and ready. :thumbsup:

$799???

I guess it true a sucker is born every minute!!:rofl::rofl:

Ive paid 100 bucks or so for the paperwork, but that is it.:thumbsup:

In the old days it was fabric protection, paint sealant, undercoating, pin striping, or other dealer do-dads all added to increase their bottom line.
If they do both, it's time to run.....:thumbsup:

$799 sounds pretty ridiculous. :thumbsup:

prep fee is the car wash performed by the illegal alien out back.:thumbsup:

It's PROFIT!:thumbsup:

It is a very common expense in deals. I represent a few dealers and have never been able to get that removed either. The dealers are usually offsetting outside expenses that they are required to carry in the deal. My dealer has a $799 fee and I have paid it on every deal.
:o :rofl::rofl::rofl: :bashhh:

I've been shopping for a new truck the last few weeks in MA and NH and I have seen varying dealer fees, usually around $199 to $299 in this area.

Most of the trucks I have looked at can be purchased for invoice minus any applicable rebates. I'll let the dealer keep their 2-3% holdback, I don't need to be too greedy. However, I will also ask them to reduce the price by the amount of the so called "doc" or "prep" fee. In most cases, they will do the further reduction but they can not just waive the fee.

Where can one find the "invoice" price?

Where can one find the "invoice" price?

i use edmunds.com

Just don't put all of your faith into the online "invoices". I have seen quite a few of them that are higher than the actual factory invoice... As with "blue books", if you must rely on them, use them as a guide, not as FACT.

AAA used to charge their members $20 bucks for an "invoice printout". It is amazing what faith some sheeple will put into something they purchased rather than having the ballz to ask to see the real deal for free! I've seen them argue over the invoice price quoted on their paid-for printout when they are looking right at the factory invoice! But then again, with the track-record of the car business, I shouldn't blame them for not trusting anything they didn't come up with themselves... :rofl:

If you are serious about buying a vehicle, just do as I said and make an appt with a fleet mgr. They will be happy to show you a copy of the actual factory invoice. Then make your deal from there.

Oh yeah, another benefit by buying from the fleet mgr. Unlike the "live for today" lot lizards, the fleet mgr's don't mind if you want to order your vehicle. I have ordered my vehicles for the past 15 years now. That way I get exactly what I want and it will be factory fresh. They usually arrive within 5 to 8 weeks. I can live with that...


BTW- CA limits the "doc fee" to $35 per sale. It might have been raised to $45 recently, but I am not sure.

If they call it a "prep" fee, they can charge what they want. If folks are foolish enough to pay it, well, that is their own fault... :nono:

Buy the vehicle through NRA. If you are not a member, why not join. They will provide dealer cost and discount pricing. They provided several dealers that were willing to sell me a new vehicle for invoice. One dealer dropped his price to $ 350 below invoice, and no prep fees.

they knew i was ready to buy went there with my insurance info so all it would have taken was a call to the insurance office to fax over the papers. had my financing set to go through my credit union could have called and picked up the money. we agreed on a trade price that was fair to me before i started talking the price of new car. i was at dealer getting my silverado serviced and had done my wifes equinox the week before. the service writer that was there knew me from the other dealer i had used until they closed and knew me well so they they would have gotten all the service on it too. i expected to get a call later in the day but i guess they didnt care about the sure thing which surprised me. ill start looking again once it warms up here. the factory incentives are due to change again on feb 1st if they are not better ill wait until they are. in the mean time wife wants to go looks at the mazda zx9 again so we'll see what happens. she really liked the pilot but there are a bunch of reports on edmunds about them pulling to the right with not too much being done about it . someone at work was suppose to pick up his new cx9 today and ill see how he did price wise on it

$799???

I guess it true a sucker is born every minute!!:rofl::rofl:

Ive paid 100 bucks or so for the paperwork, but that is it.

The only difference between you and I is that I know the true invoice including holdbacks and financing backsides and my $799 is added to that. Your $799 is just added into your "invoice". Besides, I have never been opposed to a business making enough money to pay its overhead. Keep in mind that most dealers are carrying a monthly nut of $350k or more.

An automobile is the worse investment (until houses recently :) ) anyone will ever make..So lets face it..do you want to make it by remembering that unknowledgable dishonest salesman and dealershit or just buy it online with no hassles and no middleman..

And......How does a car salesman stand behind one product these days when the dealershit
he works at sells multiple types of new cars.. GM/toyota/nissan etc... its all bs

And....Car saleswoman lol..ill let dice Clay handle that one :grin: