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What New Car Fees Should You Pay?

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Comments

  • mrfox73mrfox73 WashingtonMember Posts: 1
    I went into a Honda dealer yesterday to look at buying a CRV, I asked for Costco pricing- since I am a member too. They came back to me with the cost of the CRV- $1500 on a few discounts with the Costco discount. They added sales tax and licensing fees... which I 100% understand. Then I saw other fees which are as follows: Honda Investment Plan- $1,955, Key Replacement $649, and a Permaplate- App which was $649. For a total of : $3,293. They also listed NAS GAP fee of $899. This is a total of around $4,000 that is not directly apart of the car. My question here is- Why are they charging me $4k in extra fees and how much of that do you feel I could talk them out of- to me it is just extra profit for the car dealer. I feel that $4k more is a lot above the price of a car...never seen this much extra fees other places.
  • kyfdxkyfdx Moderator Posts: 211,835
    mrfox73 said:

    I went into a Honda dealer yesterday to look at buying a CRV, I asked for Costco pricing- since I am a member too. They came back to me with the cost of the CRV- $1500 on a few discounts with the Costco discount. They added sales tax and licensing fees... which I 100% understand. Then I saw other fees which are as follows: Honda Investment Plan- $1,955, Key Replacement $649, and a Permaplate- App which was $649. For a total of : $3,293. They also listed NAS GAP fee of $899. This is a total of around $4,000 that is not directly apart of the car. My question here is- Why are they charging me $4k in extra fees and how much of that do you feel I could talk them out of- to me it is just extra profit for the car dealer. I feel that $4k more is a lot above the price of a car...never seen this much extra fees other places.

    Why are they attempting to charge you for all this? For the normal reason. To make as much money as possible.

    You can try negotiating, or just let your feet do the talking.

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  • BubbaSmith52BubbaSmith52 Member Posts: 1
    edited December 2020
    I go by the deal I am getting on the fees. If I am getting a great price on the car I will pay the fees. If they are not budging on price then I will not pay extra fees. All dealers have a little room on the sticker price. I will tell you that for a dealer to be competitive there is not a whole lot of mark up on the sticker from what they paid for the vehicle. I learned this when I sold cars. I usually made more selling a used one than I did selling a new one. How dealers really make their money is by volume sales. ( and service department) The more they sell through the year the bigger kickback they receive from the manufacture. This is why dealers will discount a vehicle by a huge amount is to make their quota for the kickback. I go in with the mindset of both the dealer and myself getting a fair deal. They have to make some money or they cannot stay in business. These new dealership building requirements by the manufactures are a huge overhead cost for the dealer. I do not want to cheat the dealer but I will not be taken advantage of either. I find out what the fair price for the car and then if I trade I find out my trade value and go in with the numbers and find what I am looking for and when they give me the price on the paper I will cross out their numbers and write my own and hand it back. More times than not this has worked or we came very close to my price. Keep in mind I said fair price not lowball. Another thing to keep in mind is the salesman only shows you the car. It is the manager who sets the price. The salesman does not get to call the shots so if you get mad then get mad at the manager not the salesman. The salesman doesn't make money when he sells a car. They get what they call commission against draw. Meaning that the dealership pays them a monthly salary and when they sell a car their "commission" is paid back to the dealer against what they already were paid in their guaranteed monthly salary.
  • pfeilal23pfeilal23 Member Posts: 1
    PA maximum tax should be 8% since that's what Philly's sales tax rate is.
  • rickycourtneyrickycourtney Member Posts: 1
    edited July 2021
    California's maximum doc fee is now $85, plus the state now allows dealers to charge a $30 electronic vehicle registration fee. You can expect nearly all dealers to charge you the $85+30.
  • MichaellMichaell ColoradoModerator Posts: 211,955

    California's maximum doc fee is now $85, plus the state now allows dealers to charge a $30 electronic vehicle registration fee. You can expect nearly all dealers to charge you the $85+30.

    The doc fee has always been $85; the $30 registration fee is news to me - I assume this is in addition to the state imposed DMV fees?

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  • AnonymousExCarGuyAnonymousExCarGuy Member Posts: 1
    Michaell said:

    California's maximum doc fee is now $85, plus the state now allows dealers to charge a $30 electronic vehicle registration fee. You can expect nearly all dealers to charge you the $85+30.

    The doc fee has always been $85; the $30 registration fee is news to me - I assume this is in addition to the state imposed DMV fees?
    CA's doc fee hasn't always been $85. It has risen from $45, to $55, and is now $85. $30 Electronic registration fee is actually a filing fee. This allows dealers and or drivers to skip a physical trip to the DMV in order to register each sale/transfer. This has helped drivers get plates and registration faster than in years past.
  • MadMoaiMadMoai Member Posts: 1
    Rhode Island documentation max fee is $400.
  • usm1811usm1811 Member Posts: 1
    Oklahoma does NOT give a "trade-in sales tax credit". You pay the full excise tax of 3.25% and Sales Tax of 1.25% on the full purchase price of your car regardless if you have an equity trade-in car or not.
  • sergioc615sergioc615 Member Posts: 16
    edited October 2021
    NJ doc fee’s ?

    How are taxes calculated into the lease?
  • kyfdxkyfdx Moderator Posts: 211,835

    NJ doc fee’s ?

    How are taxes calculated into the lease?

    Doc fees are not restricted in NJ. They can be whatever the dealer decides.

    Taxes are 6.625% of the sum of payments (I think.. either that or depreciation). Tax is either collected upfront, or rolled into the CAP cost.

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  • HenryCameronHenryCameron Member Posts: 1
    SC doesn't have a sales tax on vehicles. Instead we have a 5% "Infrastructure Maintenance Fee" capped at a max of $500.
  • carolelombard2022carolelombard2022 Member Posts: 1
    Thank you for the relatively current information. NC DOT fee list is dated 2020. (No response from AAA or NC Dot on current fees.)
    Dealer overcharged me on tax, possibly on "License" Fee--transferring plate from old car.
    I know toner for printers is expensive, but $579 doc fee! At least I made the man count the cash, then go back with "counterfeit pen" to check bills.
  • DealershipripoffDealershipripoff Member Posts: 1

    A car dealership in my town just decided to sell Vespa scooters, and they are charging $1,300 in fees for a $4000 scooter....

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