CAR DEALER DOC FEES. Can you negotiate them out? How to buy a car.

The dealer has fees to compete for paperwork. Most consumers don't understand them and think they are a rip-off or fraudulent cost to buying a car. In this video, I explain exactly what a dealer documentation fee (dealer doc fee or closing cost fee) pays for and when the doc fee becomes too much.
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#Chevrolet #Louisville
You can now find me at my own dealership in southern Indiana. My wife and I started Mike’s Car Store Located in Georgetown, In. Where Buying a Car Doesn’t Have to Suck™

We specialize in Late model Used cars for all types of buyers. If you have challenged credit we can definitely help you and ensure you don’t get scammed or pay too much. If you are a cash buyer or have excellent credit we will be glad to help you as well.

[HellAtlantic]

My man, most of everything you just explained is “the cost of doing business”. Those costs are worked into the selling price of the car. What the buyer is concerned with is unnecessary fees tacked onto the price. That would be like a dealership tacking on a “electricity fee” because they need to keep the lights on. Don’t ask me to pay your costs of doing business.

[herual-ameen]

If dealerships are afraid of getting sued over who does and does not pay a doc fees, then they should just get rid of the doc fees all together.
Problem solved!

[mudsinkmayor]

The guy is full of it!!!! Dealer prices are higher than private party sellers because of all the reasons he gives to justify the doc fee. These expenses are already built into the price of the car. The doc fee is just a form of double dipping.

[super]

Sorry, isn't all of this the cost of doing business and should be added into the listed price. What if you bought a pair of pants from Walmart for $30 and when you get to the register they start adding all these fees, printing you a receipt, a cart fee, fee for the person who hung it on the hanger, a fee for the cash register and the pair of pants now cost you $50. Isn't this the same thing?

[Ziebenator-jjej]

Ex-car salesman who sold professionally in the mid 80's...buying cars from a dealership back then was a sham...fast forward to present day 2019. NOTHING HAS CHANGED!!!

[stillaworkinprogress]

Please note that some states have limited the amount a car dealership can charge on DOC fees. Apparently even state legislators feel that DOC fees are a rip off.

[donlee]

I have two words to say, and the first one is Bull (you can probably figure out what the second word is). When I started in the car business in 1979 in Oklahoma City there were NO doc fees. I remember the first doc fee was $19. Then as the dealer found out the people would pay it, the fee started to grow; up to $29, then $49, $89, $129, $199, etc. The current doc fee charged by dealers around OKC now is $500. Does it pay for all the stuff you mentioned?... Not any of it (look down... are your pants on fire?) Most of the time it goes into the pocket of the dealer principle; that's HIS money that he takes out for himself. If a dealership sells 250 new cars per month and 150 used cars, that's $200, 000 that the dealer siphons off the top to his own bank account; PER MONTH! Now get this: if you buy a new car for $30, 000, the $500 doc fee is approximately 1.7% of the sales price that you're paying extra. But they charge the same dollar amount ($500) on used cars, so if you buy a $2500 used car, that comes to right at 20% more money out of your pocket. Then the dealership lies to us and comes up with a lot of fictitious expenses to justify the charge. They assume we're gullible and will just pay it. Apparently they're right. Wise up- refuse to pay it! They'll still have to show it on paper, but they can and usually will lower the price to cover it. Knowledge is power!

[phanttomracer]

Honestly sounds like he's trying to convince himself, not us!

[Mke]

I'm a PA. Maybe I should start charging my patients for my medical license and continuing education fees.

[christianphillips]

Did a deal with Capital One Auto Finance, and the best ever customer service agent allowed me to plug in and adjust numbers for an approval on a 15k vehicle. Raised the taxes from 1k to 4k, added an extended warranty for 3k, and kept the $600 dealer fee on there for a total of 22.6k minus 1k down payment which brought my amount financed to 21.6k but none of the adds changed my down payment requirement of 1k, but when she took away the $600 “dealer fee” and made it zero, it dropped my down payment requirement to about $700! I asked her why would my down payment only be affected by the sales price of the vehicle and the “dealer fee” but she obviously had no clue. But I do! Because they are one in the same! Doesn’t matter how much you’re actually financing, as that only changes your payment and maybe APR but we are loaned a certain percentage of the vehicles value. If the sales price is 15k but the dealer fee is $600 then the total sales price is technically 15.6k and that’s the number banks use to decide loan to value and the down payment needed! With the dealer fee on the loan, my 1k down payment requirement did not change even by $1 regardless of if my amount financed changed 6k! It only changed when the sales price was adjusted and when the “dealer fee” was adjusted! Like many other comments I’ve seen, I’m also disappointed in Chevy Guy because this video looks forced and he’s not himself! Lost me as a subscriber buddy.

[realBatman]

All those legitimate document fees from other industries (such as real estate) exist because they literally have LAWYERS doing the work, and facilitating a transaction between two independent individuals. Where as an automotive dealership is employing a minimum wage low education employee to facilitate a transaction between their business and a customer. How can you even begin to compare and legitimize these the dealership "document fees"? Insane.

[gncc]

Most if not all is dealer profit. Some states have doc fee caps by law of $75. Don't let this guy fool you. His dealership may be more reasonable than others but lets call it what it is....dealer profit.

[allpraisebob]

I really don't care what fees a dealer wants to tack onto the price, but I do care that so many states attorneys seem to ignore the increasingly common practice of hiding these fees in the fine print while advertising what would otherwise be a competitive price. One dealership in Miami, FL charges a $479.50 doc fee plus a $979 dealer fee, and if those fees are applied to every customer - as claimed in this video - then they should be included in the list price. Seriously, how is this not illegal?

[HP.Customs]

I’ve walked out of dealerships because of doc fees. I negotiated a deal and at the end I said I’m not paying that fee on a 58k truck. They said it’s not negotiable so I walked out. As I was getting in my truck to drive away they said ok. You just have to be prepared to walk away from it.

[dougsverywet]

DOC Fees are unethical and robbery. Plain and simple. All the reasons you give are wrong. I like your other videos, but this is Wrong. It is nothing but Additional Added Dealer Profit. Within a 2oo mile radius of where I live, there are a number of dealerships that do not charge this. I cannot believe you tried to sell these people on the fact that it is ok. I thought highly of you on your other videos but on this one, you are just wrong. I've had Many years in the car business btw. I am not just internet educated. Years of sales and F&I under my belt. Tell the people the truth. It's a fancy way of saying additional dealer profit..plain and simple.

[theannouncerdad]

Doc fee is all dealer profit and you know it. You even say at the end “let them make a little bit of money”, so you admit it’s a profit center!

[phanttomracer]

Point at 13:00, you can reduce the price by the doc fee and then add the doc fee, so the handshake price ais the out the door price, right. As long as it's on the contract you should be fine. So change it to $0 doc fee and then don't worry about it. Keep it simple.

[benblakeney]

Yeah, normally like your content and I did listen. Just because we may disagree, there is no need to be dismissive that it went in one ear and out another. The dealership where you work may not negotiate on doc fees and that is their right. But don't argue that it is inevitable or necessary. This is the business practice they and many others follow. Again, their right to do so. I have bought cars far longer than you have been selling them. When first introduced, there was pushback on them. What these fees allow to be done is to advertise a lower price because the fee is separate just like airlines do (Don't know the true price until checkout). Plenty of dealerships just incorporate the profit needed into the final price so it probably all evens out between the two different approaches. Biggest tip I can give others is don't negotiate in terms of just sales prices but in terms of "turn-key" or absolute final price between multiple dealerships for identical cars. This allows them to use whatever fees they want in that price, but it won't matter because what does matter is the best overall price between the dealers. If you like one dealer more and they're not quite the cheapest, you can still buy from them if you want.

[boricua]

I'm in Chattanooga and the local Honda Dealer has a $599 doc fee which I thought was crazy having been in the car business I'm aware of all the costs. Then I went to a Kia Dealership in Kennesaw Georgia and their doc fee was $750 now that is highway robbery!

[aaflyer]

So what DOCS do you have to do if I bring you a cashiers check from my bank for the full amount? Maybe one paper for DMV? In Nevada I still have to go to the DMV to get my own registration. DOC fee is nothing but additional profit.