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Asked: Oct 30, 2008 - 06:38 PM

Status: Closed

Are "document fees" which dealers add to sales contract (though not on invoice) negotiable?

Local dealership adds $599 for document fees.

In Buying & Selling > Car Buying > Fees
6 answers - 389 days ago

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Voted Best Answer

avatar

greanpea68

Date: Oct 31, 2008
Time: 11:12 AM

Good effort on the answers guys but let me explain this one ;o)

First every state handles "doc Fees" differently. Some states like IE: Texas have a cap on them.... But as I said every state handles them different. Now dealers know they have to abide by the law or they open themselves up to law suits.... which cost a lot more than your doc fee.

I would guess you are either looking to buy a high line vehicle or you may be located in Florida? could be any state but I would bet one of those two.

Secondly and this is where it gets tricky You can't negotitaite the doc fee, but you can negotiate the price. example:

You agred upon ........................................................$20,000

than found out about
the $599 doc fee........................................................$599

total..........................................................................
$20,599

Now you could negotiate the selling price more
to a new price............................................................$19,401

add doc price..............................................................$599

Total price..................................................................$20,000

Every one has to pay the same doc fee or they can open themselves up to a law suit.

Hope this helps

GP

Answers

avatar

jlflemmons

Date: Oct 30, 2008
Time: 09:45 PM

Not sure what state you are dealing in, but in Texas doc fees are capped at $50. $599 would be an awfully high fee for filing the title work and registration.

Check with your online state transportation/public safety web site. You should find the details there.

avatar

jlflemmons

Date: Oct 30, 2008
Time: 10:01 PM

From TxDot web site:


(4) Documentary fee - This is a separate charge many dealers assess for the

preparation of the sales transaction documents. It may be no more than $50, which is

considerably more than your actual cost to do this. You might consider using the “doc fee” as a negotiating item with the buyer.

Source: http://www.txdot.gov/publications/motor_...

avatar

steve_

Date: Oct 30, 2008
Time: 10:49 PM

One way to avoid negotiating the line items like doc fees is to get an "out the door" price (whether you are buying outright or financing). Then you can just focus on the bottom line.

Know All the Costs Before Saying "Yes"

Out The Door (OTD) Pricing questions

avatar

canddmeyer

Date: Oct 31, 2008
Time: 03:26 AM

Yes, the fee can be negotiable unless the fee is legislated, as some states do this. Needless to say, the dealer is tacking on about $550 in profit to the sale. Shop elsewhere.

avatar

greanpea68

Date: Oct 31, 2008
Time: 11:12 AM

Good effort on the answers guys but let me explain this one ;o)

First every state handles "doc Fees" differently. Some states like IE: Texas have a cap on them.... But as I said every state handles them different. Now dealers know they have to abide by the law or they open themselves up to law suits.... which cost a lot more than your doc fee.

I would guess you are either looking to buy a high line vehicle or you may be located in Florida? could be any state but I would bet one of those two.

Secondly and this is where it gets tricky You can't negotitaite the doc fee, but you can negotiate the price. example:

You agred upon ........................................................$20,000

than found out about
the $599 doc fee........................................................$599

total..........................................................................
$20,599

Now you could negotiate the selling price more
to a new price............................................................$19,401

add doc price..............................................................$599

Total price..................................................................$20,000

Every one has to pay the same doc fee or they can open themselves up to a law suit.

Hope this helps

GP

avatar

sidious6688

Date: Nov 02, 2008
Time: 04:18 AM

Doc fees are strongly defended by dealerships. I'd say they aren't "negotiable" but the price up to that point is. If you negotiate a "price" with the assumption you will be hit with the doc fee of "x" later, you'll have minimized the doc fee impact. ths fee is nothing less than a dealer attempt to add profit back into the deal after the price has been "negotiated."

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