Doc fees on cars

AlistarWills

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Jul 26, 2006
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Is there a law in Alabama saying if one person is charged a doc fee then all buyers have to be charged one? I think I was lied to by a dealership. I didn’t buy because they couldn’t get the price right but I want to know if he was lying.
 

Jessica4Bama

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Nov 7, 2009
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I was told by my ex co-worker who used to work in the used car business before he began working for us that yes, if they charge one person that amount they have to charge everyone that amount. Now if this is a fact I’m not sure. I ended up paying a doc fee of $595 for my Subaru.

I do know that some states cap the amount a dealer can charge for a doc fee. In California I think it’s $95 or something like that. I researched this before I bought my car last year.
 

rolltide_21

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Dec 9, 2007
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NW AL
Is there a law in Alabama saying if one person is charged a doc fee then all buyers have to be charged one? I think I was lied to by a dealership. I didn’t buy because they couldn’t get the price right but I want to know if he was lying.
Yes, a trusted friend of mine is retired out of the car business (Chevrolet). I told him about me not being able to negotiate out of a doc fee. He told me the law states if you charge one person then you must charge all hence forth. When I bought the vehicle the finance officer told me that even employees where I purchased truck (Tom Williams in B’ham) had to pay the doc fee. I’ll try to find a link to substantiate.


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rolltide_21

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Dec 9, 2007
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I was told by my ex co-worker who used to work in the used car business before he began working for us that yes, if they charge one person that amount they have to charge everyone that amount. Now if this is a fact I’m not sure. I ended up paying a doc fee of $595 for my Subaru.

I do know that some states cap the amount a dealer can charge for a doc fee. In California I think it’s $95 or something like that. I researched this before I bought my car last year.
$400 at any of the Tom Williams dealerships in Birmingham including their used inventory on the Sonic lot. I bought an 07 Silverado in the summer from them. Had to pay the doc fee. The price was reasonable so I had no reservations paying it. The truck has low milage, one owner southern truck. Sometimes the better lots have these fees but better vehicles too, especially used ones.


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AlistarWills

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Jul 26, 2006
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So somehow my father has bought his last two cars and makes an out the door offer. The salesman brings up the doc fees and other hidden costs and he flat tells that it ain’t his problem. He’s writing a check and if they want to make the sale they’ll figure the rest out on their end. I guess they are eating into the vehicle amount to cover their fees.
 

RollTARDIS

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Nov 22, 2017
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So somehow my father has bought his last two cars and makes an out the door offer. The salesman brings up the doc fees and other hidden costs and he flat tells that it ain’t his problem. He’s writing a check and if they want to make the sale they’ll figure the rest out on their end. I guess they are eating into the vehicle amount to cover their fees.
Sounds like my grandpa.
 

danb

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Dec 4, 2011
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Hazel Green, AL
So somehow my father has bought his last two cars and makes an out the door offer. The salesman brings up the doc fees and other hidden costs and he flat tells that it ain’t his problem. He’s writing a check and if they want to make the sale they’ll figure the rest out on their end. I guess they are eating into the vehicle amount to cover their fees.
My dad was exactly like that, and was the best negotiator on buying a car I have ever seen. I wish I inherited his skill, but sadly I didn’t!

Car buying has change some since his heyday, but a lot of things he told me are still true. Two rules always still apply..first rule is to never look too interested like you really like it, and second...always be willing to walk away and leave.

As far as doc fees, I think it’s a BS charge, along with the dealer prep that some try to add in. I’ve always heard what was stated above about charging one person, having to charge everyone. It’s really just a way to get a few hundred or more dollars out of you at the last part of the sale. The vast majority of people will just allow it, because that new car is right at their fingertips and they have already convinced themselves to buy it. In reality, it’s all in the way they write it up. I always tell them to sell me the car for what we agreed upon, minus the dealer prep and doc fee, then add that amount in the DP and D fee line to equal out what we initially agreed upon.

I work in the DME/medical field. We file insurance and Medicare/Cade and it usually involves a ton of paperwork and hassles to get paid. The amount of paperwork a car dealer does on a car sale is minimal in comparison. We don’t get to charge for all of that nor do I think we should be able to. I consider it the cost of doing business, and believe a car dealership should too!

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Jessica4Bama

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Nov 7, 2009
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Alabama
I had got another quote from the Subaru dealer in Knoxville. My parents were heading to the mountains around the same time my vehicle would be ready so it’s no skin off my back to go there. I’d rather by local, however, so I called the Huntsville dealer. And told them if they could match that offer with their doc fee and everything for the out-the-door price that I would order it today. They called me back within 10 minutes and said it’s a deal. I had them send me over an official quote sheet. The first one had the price we mentioned as the subtotal then the doc fee added in. I had to call them back and say that isn’t what we agreed to. Then they sent me the corrected one and I ordered my vehicle.

The only game they tried to play was the finance person, but I knew what my monthly payments should be and when he had something higher I mentioned that I had already been approved. He proceeds to pull my finance sheet I gave them upon arrival from out of his top desk drawer. But it was all in all a smooth process. It just took forever to do.
 

TIDE-HSV

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Oct 13, 1999
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Well, I don't pay them. I state at the outset that I'll find a different dealer, if one is proposed. I've looked for a provision in the Code of Alabama and, if it's there, I can't find it. I owned property with a local car dealer once upon a time and asked him about them. It turned out that they belonged to an association of dealers and the agreement required that they charge a doc fee (didn't specify the amount) and the agreement was legally binding, so it was "legally required." The section dealing with vehicle sales Title 32-8, if anyone wants to look for it. Because of the way the dealer distributorships are set up, the brand I usually buy is significantly cheaper in TN, so that's where I usually buy. The same approach works with them. The doc fee has no basis in accounting, since it's just a slice of their administrative costs. It's just part of the price of the car...
 

BamaFlum

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Dec 11, 2002
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I’ve always negotiated with an out the door price. I tell them I what what it is going to cost me period. Usually we have enough cash on hand and tell them that also. It speeds up the process and eliminates all the hidden fees. Once we’ve agreed, I talk to the finance person in case their deal is better than the what we have.


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TIDE-HSV

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Oct 13, 1999
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I’ve always negotiated with an out the door price. I tell them I what what it is going to cost me period. Usually we have enough cash on hand and tell them that also. It speeds up the process and eliminates all the hidden fees. Once we’ve agreed, I talk to the finance person in case their deal is better than the what we have.


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Exactly my approach. I tell them on the front end that it's a cash sale. This is always disappointing to them, since they make so much of their money on financing shenanigans...
 

TIDE-HSV

Senior Administrator
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Oct 13, 1999
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Huntsville, AL,USA
Is there a law in Alabama saying if one person is charged a doc fee then all buyers have to be charged one? I think I was lied to by a dealership. I didn’t buy because they couldn’t get the price right but I want to know if he was lying.
I've never been able to find it in the Code of Alabama...
 

Displaced Bama Fan

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Jun 5, 2000
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Exactly my approach. I tell them on the front end that it's a cash sale. This is always disappointing to them, since they make so much of their money on financing shenanigans...
I financed my truck through Ford Credit. We had already agreed on the price and then the sales guy comes in with a sheet with 6 different payment plans and asks me what I can afford. I started laughing and said I know what my credit score is (and it's really good) and I know about what the interest rate and payment should be and it's not on this sheet. So tell me what my interest rate is or go get my keys to my suburban. He said are you serious? I told him you GD right I am. I'm not playing any games. He then said well what can you afford? (Again) . I got up and asked him for my keys. At that point, the GM walked up and said Mr DBF, your interest is this and your payment would be this. I looked at him and said now you've just completely pi $$ed me off for wasting my time. What else are you going to do to make it right? Shocked....loved it.
 

TIDE-HSV

Senior Administrator
Staff member
Oct 13, 1999
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Huntsville, AL,USA
I financed my truck through Ford Credit. We had already agreed on the price and then the sales guy comes in with a sheet with 6 different payment plans and asks me what I can afford. I started laughing and said I know what my credit score is (and it's really good) and I know about what the interest rate and payment should be and it's not on this sheet. So tell me what my interest rate is or go get my keys to my suburban. He said are you serious? I told him you GD right I am. I'm not playing any games. He then said well what can you afford? (Again) . I got up and asked him for my keys. At that point, the GM walked up and said Mr DBF, your interest is this and your payment would be this. I looked at him and said now you've just completely pi $$ed me off for wasting my time. What else are you going to do to make it right? Shocked....loved it.
Your negotiation approach resembles mine... :D
 

day-day

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Jan 2, 2005
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Once I asked while settling on a price if there were any additional fees and kept getting "no" for an answer. When I went to pay, there was the doc fee or whatever the dealer labeled it as. I said no and got the "I can't believe your paying X amount and willing to walk over this fee." They "removed" it by lowering the price of the vehicle the same amount of doc fee and leaving the fee on the paperwork. This happened to me twice.

The last time I bought, we started with all of the costs up front to start with so I could use this fee in the total calculation; seemed to be more relaxing since I knew I wasn't going to have to go through a second hassle when paying.
 
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danb

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Dec 4, 2011
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Hazel Green, AL
Years ago, my brother decided to go to the Ford dealership in Huntsville and bought a brand new Mustang. He traded in his 79 Bronco on the deal. When my dad finally found out a few days later, he went through the roof!

You see, my brother had got into some trouble with the cops a couple years prior, and my dad made him get rid of the mustang he had at the time and get the Bronco..(my Brother had a good job and was paying for it, but my dad pulled the “not while you’re living in my house” card).

So my brother had figured enough time had passed that my dad would get over everything if he made the deal before he found out. WRONG!

My dad and I (I was around 12-13 yo) followed him back down to Woody Anderson Ford, and went in and told them what the deal was. The salesman said “I’m sorry sir, but it’s a done deal. The papers have been signed, and his name is on the title clear. Besides, we already have the Bronco on our used lot, and have a potential buyer in process of buying it.”

My dad looked over the actual deal my brother had got with the trade and told the salesman, “Well, beside the fact, you screwed him over on the price on top of everything” (which that fact was secondary to my dad at the time. He didn’t want him to have another sports car while living under his roof)

The salesman proceeded to tell my dad about how he got the best deal, and how he wouldn’t find a better deal anywhere in the south...yada yada...

My dad looked at him and told him he was full of it (not in those exact cleanly spoken words).
He then spoke to the manager. My dad said to the manager...”If he got such a good deal with the trade in as all of you say he did, I’ll make a bet with you....I bet you $1000 cash (pulled it out of his wallet and laid it on the table) that I can go to another dealer and buy that car $1000 or more cheaper outright without a trade in, than you sold the car to him with a trade....AND.. If you keep your mouth shut, and stay in this office, I can get that deal from one of YOUR SALESMEN! If I can, you tear up the papers and we trade back like it didn’t happen. If I can’t, you keep my $1000, and we leave with the car and keep the original deal.”

To my surprise, without much hesitation, they tore up the deal and my brother drove his Bronco home, and little brother (me) got to rag on him for months!!


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