$299 Doc fee. I'm not proud of it, but didn't bother to haggle. New Country in Hartford had it on slip and I let it go. I basically bought this thing over the phone and mailed a check when he called and said he found the car we were looking for on the boat.

 

Documentation and Prep Fees are like paying the cashier at Wal-Mart a fee to ring up your purchase. Total BS

 

The "destination charge" worked into every new car sold in America means mfr to consumer, not mfr to dealer. Most prep and paperwork charges are worked into this destination charge; anything above about $50-60 is pure dealer profit. I know this because I used to work new car finance and sales, and always tried to accomodate customers on the so-called "mandatory" (at the dealership I worked at) $299 prep charge. Bottom line: it is negotiable, but anything less than paying $50-60 is good luck on your part.

Oh and BTW Ralph Schomp MINI/BMW/Honda/GM charges >zero< prep fees, always has, always will. Nice dealer that understands, and doesn't mind eating that $50-60 for the new car customers. It's a great way to get folks to come back Jimbo

 

If AAA will do it for free, there is something wrong with the picture when the dealer will not waive the $300 fee....

 

I think Ralph Schomp said this 60 years ago, except substituted "Woolworths" for "Wal-Mart."

 

I used to work in sales at a dealership so from my experience.

ADM (additional dealer markups) are indeed pure profit, they are on there as a negotiating tool more than anything. The idea is, if they start with a higher number, the customer will be happy after they "successfully" negotiated down to msrp. Sad and kinda shady, but true. If you've ever shopped at a market in a second or third world nation you know this type of bargaining process.

Same goes for document fees for the most part, ours actually wasn't bad, of the 240 charged, 212 went directly to the DMV and if they really wanted to register it themselves, the fee was waved.

Prep covered emissions testing/sticker and detailing to clean off the lines left by the weather tape applied to vehicle for shipping i don't recall how much was charged, maybe 30-40 over cost.

What it all comes down to is business, the dealship is going to try for as much as they think they could possibly get for a vehicle. When buying it is best to look at the whole picture as most sales folks are quite adept at the art of distraction especially when a trade is involved. Don't get hung up on just ADM, Document,Prep or trade value (check NADA TRADE VALUE prior to going in) as well as the True Market Value for the vehicle you are looking to get. Start a little lower and let the sales person do all the talking, silence is a weapon. Talk about comparable cars and how you would like to go check them out with your spouse or whomever is with you. Once down to TMV on the new car and NADA on the trade you've got a fair deal. Any lower and you're doing very well.

PS. the greater the volume of sales (bigger dealership) the more likely you are of getting better deals, the smaller the more likely that the dealership actually does have little room for dealing. Oh and be nice, the sales people are just trying to get as much as they can so to feed thier families and have to deal with the managers who are in the business of pressuring the heck out of them.

 

When you have a tight market (excess of demand), the advantage shifts to the dealer....