Blog Post by chrisoutsidefinancialcom - 02/06/2018 10:32:03pm
Car buying can be stressful – you’re making a big decision and committing to pay thousands of dollars. We want to help you shop smarter; that’s why we have assembled our list of car buying tips. We’ve got a long list). In this post, I want to focus on one important car buying tip: how to avoid surprise dealership fees.
We hear a lot of the same questions: Are documentation fees negotiable? What about destination charges? How much do I need to pay for tax, title, and license fees?
The car buying process is full of surprises, like dealer preparation fees, documentation fees, delivery fees, administrative fees, DMV fees, advertising fees, and of course sales tax! It’s like whack-a-mole, but the only thing taking a hit is your wallet. The real answer is that these fees are not standard. They vary by dealer and by state. And they can add up to thousands of dollars.
For a new car, ask the dealer to email you a “Purchase Order.” For a used car, you want the “Book-Out Sheet.” Either way, the price you’re quoted should clearly list all the taxes, title, and other fees, and it should show the car’s VIN (Vehicle Identification Number). If they’re not all there, ask again. If the dealer won’t provide this info, move on to the next dealer.
Fight the temptation to visit the dealer before they give you the drive-away number in writing – that’s how you’ll end up in the back office, short on patience, blood sugar, time, and choices.
It’s rare, but it happens. You didn’t order etching. You wouldn’t pay for fabric protection. (see The Truth About Protection Products – Four to Get and Five to Forget). Or some other fee has popped up.
You always have the option of respectfully requesting the contract you agree to, or calling the dealer who gave you the next best price and telling them you’ll be right over. The key is that you are in control.
Don’t waste your time trying to decipher mysterious fees in fine print. Get three or more “out-the-door” quotes before going to the dealer. Arrange Outside financing to save yourself unnecessary headaches – and $1,000 you didn’t know you were going to spend.