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The Neverending List Of Charges A New Auto Dealer Charges You
Go to a new car dealer’s with the serious intent to buy a new car, and you get hit with a virtual hurricane of lingo of all of the different versions of charges they plan to charge you. Who truly knows what these things mean? You do, if you read the rest of this post. Let us start with the A’s. The Additional Seller Markup is a silly made-up fee the new car dealer makes up only for you. It’ll be right there on the MSRP sticker, called ADM. Ensure that you totally knock the Additional Seller Markup all the way down.
How about the dealer floorpan support fee? That’s a silly thing to charge too. This is different with used cars. That’s what they have to pay to their financers for all of the stocks of cars that they keep. Generally, they pay approximately $100 per month in interest for every car on the lot. They would like you to pay it for them. The thing is, the car factory normally helps dealers with this. But they will just go around and collect it all over again from you too. Isn’t that handy? If the car has been sitting there on their lot for three months, they will have been paid that fee three times from the car manufacturing facility. But they still would like you to pay for it. It is a complete insult to your acumen, and you want no part of it.
How about the dealer prep charge? That’s the fee that the dealer collects from you to ready the car for sale – they take the plastic off the seats, do any surface cleaning which needs to be done, put on a coat of wax on and inspect the fluids. This is on occasion the case for used cars, as well. The used cars circumstance varies from lot to lot. For this, they would like you to pay five hundred dollars. What could it take them, an hour to finish the task? How can they in good conscience charge five hundred dollars an hour for such a job?
Another weird fee they love getting from you is the Drive Off Deposit. That’s just a completely and totally made up fee that the new car dealer collects from you to aim to balance out the rebate that they may have given you. It is just stealing, plain and straightforward, and you don’t want them to do that to you.
And ultimately, the Factory Holdback is something you want to watch out for. The factory holds back 2% or 3% of the cost of a car from the dealer until they actually sell it. Once the car is sold, they will give dealer the their money back. What sellers do is, they aim to double charge it – one time from the car company, and one time from you. If you spot this on your invoice, request to have it taken off or threaten to walk out. It is well worth the effort to display some backbone.
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