Dealership Preparation Fee: What Should Be My Argument To Avoid Paying?
The best argument to avoid paying dealer prep fees when buying a new vehicle is to know what these fees cover and whether they are justified. Car dealership prep fees are charges that dealerships impose to cover the cost of preparing a new vehicle for sale, such as washing and waxing the car, installing accessories, and performing a pre-delivery inspection.
Here are some possible arguments to make:
- Negotiate the price: The first step is to negotiate the cost of the car without including the dealer prep fees. You can argue that you’re not willing to pay additional fees for services already included in the price of the vehicle.
- Challenge the necessity: You can question the necessity of the dealer prep fee, especially if you believe the vehicle is already in good condition and doesn’t require any additional preparation. You can ask the dealer to justify the cost and explain the services included.
- Shop Comparison: You can also compare dealer prep fees across different dealerships to find the best deal. Some dealerships may have higher costs than others, and you can use this information to negotiate a lower price or find a dealership with lower fees.
- Refuse to pay: Ultimately, you can refuse to pay the dealer prep fee if you don’t believe it’s justified. However, there may be better strategies than this if you’re in the middle of a negotiation and want to maintain a good relationship with the dealership.
List Of Fees To Never Pay A Car Dealership Or Required By Law To Pay
Before you read on, it is essential to note that not all of these fees may apply to every dealership or situation, and some prices may be negotiable or even required by law in certain states or countries. Researching and asking questions before agreeing to fees is always a good idea. Here are some costs that you may want to avoid or negotiate:
Destination fee
The destination fee covers shipping the car from the factory to the dealership. However, some dealerships may inflate this fee, and it’s worth checking to see if it’s negotiable.
Documentation fee
That covers the cost of processing paperwork related to the sale, such as title and registration. However, it can be an arbitrary fee that varies widely between dealerships.
Advertising fee
Some dealerships may add an advertising fee to the car’s final price but should include it in their overhead expenses.
Extended warranty fee
Dealerships may offer extended warranties as an add-on, but it’s often possible to find better deals on warranties from third-party providers.
VIN etching fee
This fee covers the cost of etching the vehicle identification number (VIN) onto the car’s windows to deter theft. Still, it can be an unnecessary add-on except if they add it as an incentive or the cost is the same as at retailers.
Undercoating and rust-proofing fee
Some dealerships may offer undercoating and rust-proofing services as add-ons, but these services may only be necessary for some vehicles.
Window tinting fee
This fee covers tinting the car’s windows, but doing this independently is often cheaper.
Administration fee
This fee covers administrative costs related to the sale but can be another arbitrary fee that varies between dealerships.
Additional dealer markup
Dealerships may mark up the price of the car above the manufacturer’s suggested retail price (MSRP). Still, it is worth negotiating the price and researching fair market values to avoid overpaying.
Remember, being informed and prepared is the key to avoiding dealer prep fees. Research the costs beforehand and be ready to negotiate to get the best deal possible.
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