School me on Doc fees

[cpconst]

When buying a car through a dealer they typically charge you doc (documentation ) fees. This is all of the paperwork the dealer makes you sign at the end of a car purchase. I once had a neighbor tell me to never pay doc fees because the finance person gets paid to do said paperwork. Over the years I've paid doc fees only once but they rolled back the end price of the car enough to cover their $250 bs charge. What do you guys think?

[wdfifteen]

It's pure profit. They tried to charge me a $250 doc fee when I bought my Tundra for cash. It took all of 30 minutes to fill out the purchase forms, most of which were COA for the dealer. They insisted they needed the $250 doc fee until I told them I'd changed my mind.

[id10t]

It is their built in BS profit.

Not many other industries are the prices on the tags just a suggestion, and every person pays a different price. But because of the past and hte expectations the dealer has to be able to give up some and still keep a guaranteed profit.

If I bought cars more often (every 10-12 years it seems) I'd be happy with a fixed, reasonable price with no BS.

[Steve Carlton]

In CA if you don't charge it to everyone, you can't charge it to anyone. It's just a surcharge to cover the overhead of processing DMV. Everybody charges it and people accept it 99% of the time. In CA it's no big deal because it's only $80.

[jcommin]

Yep. It is profit. There is no sales tax in IL for a service. But a doc fee is taxed. I believe in IL the doc fee is a max of 169.00

[PorscheGAL]

Check the fine print on the dealer website. Here all the dealer's websites say the price includes doc fees but when you sit down to sign the papers, the doc fee is there. If you ask, it will be removed.

[Dantilla]

If I buy a car from a dealer, I only negotiate an "out the door" price.

I don't care how the invoice lists any taxes and fees, but this is what I'm willing tom pay, period.
Too bad for the finance guy, as he/she will earn zero commission from me, but at least we get through the paperwork quickly.

[cpconst]

What's even a bigger piece of bull is that you only save the tax difference when you trade your car in on a new car. If you buy used and trade in your car you are taxed on the entire amount of the car you're buying. I want to know who is the brilliant one that came up with this. They'll tell you it's an incentive to but a new car right? So you can tax a used car indefinatly as long as it has any value. I'm done venting.

[Norm K]

Originally Posted by cpconst

What's even a bigger piece of bull is that you only save the tax difference when you trade your car in on a new car. If you buy used and trade in your car you are taxed on the entire amount of the car you're buying. I want to know who is the brilliant one that came up with this. They'll tell you it's an incentive to but a new car right? So you can tax a used car indefinatly as long as it has any value. I'm done venting.

This leads to a gripe of mine - repeated collection of sales taxes on the same item. If I buy a used car for $10K and dutifully run straight to the DMV and register it in my name I am charged 8% sales tax. Then, if I sell it the very next day for what I paid for it and the new owner also does their civic duty by immediately registering it they are also charged 8% sales tax. Rinse and repeat for the life of the vehicle. And of course it was taxed when first sold as well. Remember, it's not unusual for a car to change hands ten or more times during its lifetime.

If I had more gumption, living in an Initiative and Referendum state I'd craft a bill and collect the signatures necessary to get an item on the ballot saying something to the effect that the state may collect sales tax on a vehicle one time and one time only: either upon initial sale as a new car or when a car first enters (and is registered in) this state from another.

For those who would argue that it's really a use tax and not a sales tax I remind them that no less an authority than the great State of Colorado calls it a sales tax and that, further, it is the annual registration fees that are the use tax/fees.

I've mentioned this to scores of people over the years, all of whom have said without hesitation that they'd sign such a petition if asked.

[Bob Kontak]

Originally Posted by PorscheGAL

If you ask, it will be removed.

On a $20k used car, probably. On a $3k POS kid's college car, they will wrestle. That's round about 10-20% additional margin on a car that cost them a $1,200 trade in.

Rape.

[xbrumossalesman]

Norm- take a look at change.org and see if you think it might be worthwhile starting a petition to collect signatures.

[Por_sha911]

Originally Posted by Dantilla

If I buy a car from a dealer, I only negotiate an "out the door" price.
I don't care how the invoice lists any taxes and fees, but this is what I'm willing tom pay, period.

This.

[Bob Kontak]

Originally Posted by Dantilla

If I buy a car from a dealer, I only negotiate an "out the door" price.

Why does the scene from Fargo pop into my head?

You buy a car for 12, they paid eight.

[Norm K]

Originally Posted by Bob Kontak

You buy a car for 12, they paid eight.

Or at least something close to that. For those who think dealers are good at selling cars, you oughta see `em buy them!

[Bob Kontak]

Originally Posted by Norm K

Or at least something close to that. For those who think dealers are good at selling cars, you oughta see `em buy them!

Just pulling numbers out of you know where but I do think the order of magnitude is within range.

Mean guys do the buying.

[Don Ro]

I recently saved $900 in additional "fees" when I drove from Scottsdale, AZ up to Prescott, AZ (1 hr., 50 min.) to pick up a new 2014 Royal Enfield Continental GT 535.
Local motocycle dealer (RideNow Powersports) has a 'rip-off' reputation, but I had not idea how much they do rip-off.

[Bob Kontak]

Originally Posted by Don Ro

2014 Royal Enfield Continental GT 535

Nice

[Don Ro]

That be it.
Is that yours?