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Asked: Jan 24, 2009 - 03:36 AM

Status: Closed

If a fee appears on a new car invoice in the section with the options, does that mean its actually part of cost?

The dealer of a new car has 3 fees listed, including destination, as part of the selling price (its mixed in with options as part of what he makes a profit on). I always thought the selling price should only contain options and that ALL fees should be outside of the sales price. He is adding the fees as line items under the invoice costs of options suggesting that its actually part of his cost for the car. Is this true? Its a VW

In Buying & Selling > Car Buying > Fees
2 answers - 305 days ago

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karjunkie

Date: Jan 24, 2009
Time: 09:08 AM

Anything titled "dealer fees" are added by the dealer and fully negotiable. Delivery fees are normal, included by the manufacturer and unavoidable. Taxes and title fees are determined off the sticker price and are not included in the invoice but are also non-negotiable.

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steve_

Date: Jan 24, 2009
Time: 10:51 AM

A different way of looking at the process is to demand that the sales price of the car include all fees, including taxes, doc fees, ad fees, title, whatever. The sales price then gives you the out the door (OTD) price of the vehicle.

When you negotiate an OTD price you don't care what junk fees the dealer sticks in the deal - you focus on the final number that works for you and you don't have to hassle over each line item. See the OTD Pricing discussion on CarSpace for examples.

Be careful when the dealer shows you an "invoice" too. Most dealers just show you the Monroney sticker on the new car with the MSRP on it (that's a federal requirement). If the dealer shows you an invoice it could be something from VW or it could be something that the dealer ginned up on the computer. Even if it's a real invoice from the factory, any manufacturer to dealer incentives or spiffs or bonus payments won't show up on the invoice, so it may not reflect what the dealer actually paid for the car. Not to mention holdback.

If the fees you are referring to do show up on the actual Monroney sticker (and not an addendum taped to the side of the sticker), then the fees are legit. But you can still negotiate the final price down.

Source: http://www.edmunds.com/advice/strategies...

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