New car budget question

[TinkOhio]

We're trying to come up with our budget for a new car and have a quick cost question. What would you consider acceptable dealer fees above and beyond the car cost and taxes. For example, one add says, "does not include dealer documentation (processing), DMV, registration, title, license, or other government fees.

Thanks in advance for your help!

 

[dex08]

We're trying to come up with our budget for a new car and have a quick cost question. What would you consider acceptable dealer fees above and beyond the car cost and taxes. For example, one add says, "does not include dealer documentation (processing), DMV, registration, title, license, or other government fees.

Thanks in advance for your help!

I always fight their document fees which are generally around $100 or $200 depending upon the dealer. I make them knock that amount off of the final negotiated price prior to tax, tags & registration. If they don't budge, I get ready to walk.

Many dealerships have this fee automatically calculated or will tell you they cannot knock it off because their computers automatically add it on. Well then, I say knock off another $100 off of the price of the vehicle then.

Also don't pay their silly 'preparation' fees. They are just bogus. Destination fees are real though and dealers do get charged that from the manufacturer, however that should already be included in your haggling negotiations final price.

For budgeting purposes, I only consider tax, tags and registration. Look up what your local MVA/DMV charges for all of this.

 

[SarahKate]

There are some really good articles on www.edmunds.com about this very topic, talks about what you can and can't negotiate.

If you are getting a super good deal, in my opinion the documentation fee (as long as it's not more than a few hundred bucks) is NOT a deal breaker.

We got our new SUV at invoice cost plus a few 1000 in incentive rebates, so a few hundred bucks for documentation was not worth the hassle of trying to negotiate.

 

[ssawka]

I always fight their document fees which are generally around $100 or $200 depending upon the dealer. I make them knock that amount off of the final negotiated price prior to tax, tags & registration. If they don't budge, I get ready to walk.

Many dealerships have this fee automatically calculated or will tell you they cannot knock it off because their computers automatically add it on. Well then, I say knock off another $100 off of the price of the vehicle then.

Also don't pay their silly 'preparation' fees. They are just bogus. Destination fees are real though and dealers do get charged that from the manufacturer, however that should already be included in your haggling negotiations final price.

For budgeting purposes, I only consider tax, tags and registration. Look up what your local MVA/DMV charges for all of this.

The problem is that depending on the car and the deal you're getting, often the dealers are making their profit off of the processing fees. They know they are going to get this and are often willing to take the cut on the price. We all want to get the best deal possible, but the dealer does deserve to make some profit.

That being said, depending on your state, a good rule of thumb is about $1000 for taxes, title, and fees.

 

[TinkOhio]

Thanks so much for your help!

 

[CowboyCO]

We're trying to come up with our budget for a new car and have a quick cost question. What would you consider acceptable dealer fees above and beyond the car cost and taxes. For example, one add says, "does not include dealer documentation (processing), DMV, registration, title, license, or other government fees.

Thanks in advance for your help!

Just negotiate an "out the door price" They will always leave the doc fee on there because they don't pay commission to the sales rep on the doc fee.