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Is my dealer ripping me off?

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Old Nov 8, 2005 | 08:56 PM
  #1  
Deuce_Coop's Avatar
Deuce_Coop
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Is my dealer ripping me off?

so ordered my new MCS tonight for aweek 49 build, but it will cost a grand more than I planned. $595 for "Dealer Delvery Package" and $399 for "Documentary Fee".

The Delivery package I understand, floor mats and locking wheel lugs at a 388% markup over if I ordered them in my spec. But what the heck is the doc fee? Is that the 400 bucks that I am saving by not having to stop into the courthouse that I pass everyday on my way to and from work and file them for myself?

I am considering calling my advisor tomorrow and adding the floor mats and locking lugs to my order and explaining that I don't need a 3rd party to buff the car as I am planning to Zaino it. But what about the Doc fee, it is printed on the purchase agreement, not written in like all the other fees.

Help-- what should I do?

P.S. this is Global Imports in Atlanta, if you have had either of these fees waived please tell me how you went about it.
 
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Old Nov 8, 2005 | 09:04 PM
  #2  
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The documentary fee is pretty standard at any dealership. That's what they charge to do the paperwork. I doubt you'll get it reduced unless you just walk in with a check or cash. I think the Dealer Delivery Package sounds like a load of crap...I wouldn't pay for that.
 
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Old Nov 8, 2005 | 09:12 PM
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From: EastSide .: =0)
hmmm not sure what a dock fee is but the "delivery package"

do even go for it ! tell them to take it off...... this BS its done over & over again if u dont know/say sumthin' they will get away w/it...
=0)
Originally Posted by Deuce_Coop
so ordered my new MCS tonight for aweek 49 build, but it will cost a grand more than I planned. $595 for "Dealer Delvery Package" and $399 for "Documentary Fee".

The Delivery package I understand, floor mats and locking wheel lugs at a 388% markup over if I ordered them in my spec. But what the heck is the doc fee? Is that the 400 bucks that I am saving by not having to stop into the courthouse that I pass everyday on my way to and from work and file them for myself?

I am considering calling my advisor tomorrow and adding the floor mats and locking lugs to my order and explaining that I don't need a 3rd party to buff the car as I am planning to Zaino it. But what about the Doc fee, it is printed on the purchase agreement, not written in like all the other fees.

Help-- what should I do?

P.S. this is Global Imports in Atlanta, if you have had either of these fees waived please tell me how you went about it.
 
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Old Nov 8, 2005 | 09:28 PM
  #4  
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From: Madison, WI
The Stealer Delivery Pkg is BS.. probably you can ask your MA to waive that. However the Doc fee is a standard fee for dealership, but the Doc fee amount varies between dealer.. So some dealer may charge $100 and some may charge $400.. I think you can also bargin for the Doc fee amount even though they already state that for 399. If you have another MINI dealer around the area, I would tell the MA to waive a the BS delivery pkg, and bargin for a reasonable Doc fee amount.. otherwise I would turn the deal to another dealer.
 
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Old Nov 8, 2005 | 09:52 PM
  #5  
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For what it's worth, I bought my mini used from a bmw dealer in decatur and still had to pay their $400 document fee.
 
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Old Nov 9, 2005 | 03:18 AM
  #6  
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Originally Posted by Deuce_Coop
so ordered my new MCS tonight for aweek 49 build, but it will cost a grand more than I planned. $595 for "Dealer Delvery Package" and $399 for "Documentary Fee".

The Delivery package I understand, floor mats and locking wheel lugs at a 388% markup over if I ordered them in my spec. But what the heck is the doc fee? Is that the 400 bucks that I am saving by not having to stop into the courthouse that I pass everyday on my way to and from work and file them for myself?

I am considering calling my advisor tomorrow and adding the floor mats and locking lugs to my order and explaining that I don't need a 3rd party to buff the car as I am planning to Zaino it. But what about the Doc fee, it is printed on the purchase agreement, not written in like all the other fees.

Help-- what should I do?

P.S. this is Global Imports in Atlanta, if you have had either of these fees waived please tell me how you went about it.
Century in Greenville is the same except $495 for "Dealer Delvery Package". I called Global also because I thought these fees were high. I live in between, but would rather drive to Greenville.
 
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Old Nov 9, 2005 | 04:09 AM
  #7  
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The DOC fee we call the "owner" money. It's the profit given directly to the owner of every dealership and not split up amongst the other salespeople, at least that's how a motorcycle dealership characterized it. Mine is $299 so that's not too bad, still hate it though
 
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Old Nov 9, 2005 | 04:48 AM
  #8  
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Brian G.
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From: Fargo, ND.
documention fee

All documentation fees in my book are rip offs and you don't have to pay it. I would pay a reasonable documentation fee like $30-50, but anything higher is a rip off.

As you said, all you need to do is drop the paperwork off yourself at your local DMV and you're done.

AS CDMINI said, this is pure profit for someone above and beyond the profit they're already making off of you by charging you MSRP+. Sadly, you're not negotiating from a position of power in this situation, what are you going to do, walk off without buying a car you've been waiting months for?
 
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Old Nov 9, 2005 | 04:54 AM
  #9  
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Doc fees are one of my biggest gripes when buying a car. It is nothing but absolute additional profit for the dealership. Paying for their back office fees (paperwork) is what the margin is for. The difference between what they pay for the car and what you pay them for the car is called margin. That's used to pay the mortgage, the light bill, the commissions and the salaries of all the support staff (receptionist, title clerk, cleaning woman, etc.) and whatever is left over is profit for the owner on his investment. So the owners decided, hey, we need another million dollars this year and came up with this clever little fee. Now it's "industry practice" and everyone does it, and like helpless sheep, we all bend over and write them a check for even more money.


Do you guys have any idea how profitable a successful car dealership is? Literally over a million dollars a year for brands like Infiniti, Lexus, BMW and Mercedes. My town's new Mercedes dealership is beautiful, it is hands-down the lovliest car sales and service that I've ever seen. I think I heard that it cost 12 Million to build it. The Lexus dealership is even larger, it's freakin' huge, probably cost even more to build than the M-B place. How do you think they do that? Not like the Ford dealer selling cars at invoice, that's for sure. Mini is a much less expensive car, but BMW has been doing this for a long time, so I'm sure there is lots and lots of profit built into the car for the retailer. But they need more. More, more, more.

Greedy *****.

Argh. Thanks for getting me all worked up. Where's my medication?

Michael
 
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Old Nov 9, 2005 | 05:11 AM
  #10  
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I paid $25 in document fees on my last vehicle purchase. Unless Georgia is providing golden titles the $400 seems a bit excessive IMO.
 
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Old Nov 9, 2005 | 05:32 AM
  #11  
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Btw, my dealer charge me around $100 for doc fee... I hope this piece of info may help.
 
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Old Nov 9, 2005 | 06:18 AM
  #12  
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I just picked up my car in Texas. Document fee was $50, right or wrong, that's what the dealer charges you for registering your car with the state. I'm pretty sure in Texas that if you insisted on registering it yourself, you would have to go the courthouse prior to receiving the vehicle, a pretty reasonable charge I think. All other costs above MSRP were Texas and local taxes, and license tag fees. I wasn't charged any "dealer" fees.
 
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Old Nov 9, 2005 | 07:30 AM
  #13  
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I was a title clerk at a dealership in SC back when I was in college. Registering a car is really easy and nowhere near $300 worth of work.
 
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Old Nov 9, 2005 | 08:00 AM
  #14  
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Document fees have gotten so out of hand, some states have restrictions on how much dealerships charge. I recall most states that have these limits restrict it to $200. If a dealership tried to charge me $400 for it, I would go elsewhere. And of course, have them drop the "delivery package" immidiately. All this is markup, so you don't have to take it. There are plenty of other MINI dealerships that truely charge MSRP and will deliver.

The only fee I let a dealership charge me is the actual Oregon DMV fees. They do the paperwork and push it through, so I don't mind paying the small DMV fee.
 
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Old Nov 9, 2005 | 08:01 AM
  #15  
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My doc fees were $80 and my delivery charge was as most people's $500.
 
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Old Nov 9, 2005 | 08:15 AM
  #16  
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I don't know if the 'fees' vary state to state, but I think that yes, you are being ripped off.

I paid approx $45 doc fee and no "dealer delivery' bs. I'd look elsewhere, $1000 mark up is
 
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Old Nov 9, 2005 | 08:24 AM
  #17  
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OH, OKAY! a 'doc' fee is the same as a DEALER PROCESSING FEE...

which on my documentation (Purchase Order) it states "not required by law"
but anywho, mine wuz 97.oo$ not tooooooo bad.....my freight wuz 550.oo kinda high, tags where 25.oo$
 
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Old Nov 9, 2005 | 08:44 AM
  #18  
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From: Round Rock (North Austin), TX
This is what I was told by MINI of the Woodlands, TX

Price of MINI + any aftermarket accessories equals Total Price
Total Price times State Tax 6.25%
Total Price times Inventory Tax .2036%
Add Total Price + State Tax + Inventory Tax + $180.55 (Titling, Registration and Document fees)
 
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Old Nov 9, 2005 | 08:45 AM
  #19  
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I bought used in VA and they had a non-negotiable $400 fee - can't remember what they called it. It was all over the documentation, and there may have even been a sign on the front door (IIRC) disclosing it. I generally call BS on that stuff, but the sales guy and the paperwork were adamant. Buying used, I just factored it into the total cost and told them how much I'd write a check for, and that they could call it what they wanted. In fact, I asked if they could charge me a $20K 'processing fee', and $500 for the car - would have helped out on CA sales tax and registration!

Can any VA residents confirm?
 
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Old Nov 9, 2005 | 08:50 AM
  #20  
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From: EastSide .: =0)
but the way u handled it wuz g00d....

that sounds about right since they are sellin' used car's (not at NEW premium) they got to make their chump change sum how!
 
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Old Nov 9, 2005 | 09:17 AM
  #21  
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Your first mistake was agreeing to buying a car without fully understanding the terms. Never ever sign or agree to a car purchase until you fully and completely understand it. In this case the dealership is basically taking on extra bogus charges to make money off you and it worked. Since you have already agreed to buy the car you're options are pretty limited because you have signed away most of your leverage. You can just buy the car and consider this a lesson learned. You can refuse to buy the car and shop around at another dealership which sells at MSRP (Yes MINI dealerships are far and few between, which is why dealerships can get away with this crap). I think you will find that it will be almost impossible to get out of your agreement unless you refuse the car and order a new one.



P.S. If you are thinking of a rebuttal which begins with the phase "well the dealer told me ______" so I thought I and everyone else had to pay these fees you really got sucked in.
 
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Old Nov 9, 2005 | 09:51 AM
  #22  
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To make things more clear, there are various "fees" that are charged. Here's a quick listing of them:

Delivery Fee - Charged by MINI USA to deliver the car. About $550 and is normal.

DMV Title/Restration/tag Fee - Very state to state and is normal for dealer to charge. Typically actual DMV fees dealer is passing on.

Document fee - Pure markup. Varies by dealership, but typically under $200. May be able to negotiate down or remove.

Dealer Prep/Package Fee - Heavy markup of services. Usually optional, but must specifically request to be removed.

Of course throw in the MINI MSRP only issue and nogotiations get more difficult. Ultimately, if you feel that its worth the extra fee to buy local, then it may be worth it. But if the fees are too high and you plan to buy elsewhere, make sure you tell the local dealer. After all, those last two are not required by MINI USA for them to charge, so they CAN REMOVE IT if they really want to.
 
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Old Nov 9, 2005 | 10:03 AM
  #23  
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Ripping you off? Ya think? <g>

At Dreyer & Reinbold in Indianapolis early this year we paid list price for the MCS, plus a $99 doc fee and $15 title fee. Cash sale for the car, no trade-in or dealer financing.

Neil
05 MCS
96 M3
 
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Old Nov 12, 2005 | 09:22 PM
  #24  
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From: Huntington Beach, CA
Specifically at Long Beach MINI in SoCal, in July 2005 I paid:

$195.00 - License Fees
$ 45.00 - Documentation Fee
$ 8.75 - California Tire Fee

The only things left on my contract are sales tax and MSRP of the vehicle. I'm fairly sure I didn't get raped during my MINI purchase in this state with a horrendous markup reputation.
 
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Old Nov 12, 2005 | 09:40 PM
  #25  
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From: EastSide .: =0)
i jus l00ked at mine again &........

my tyre fee wuz 2.oo$ in (MD)
**i dont believe u were raped w/that doc fee in Cali. but what are licence fees?
Originally Posted by Suzannne
Specifically at Long Beach MINI in SoCal, in July 2005 I paid:

$195.00 - License Fees
$ 45.00 - Documentation Fee
$ 8.75 - California Tire Fee

The only things left on my contract are sales tax and MSRP of the vehicle. I'm fairly sure I didn't get raped during my MINI purchase in this state with a horrendous markup reputation.
 
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