$1,025 Dealer Fee

[tealboy]

I was just told my local lexus dealership has a $800 dealer fee, plus another $225 administrative fee, WOW!

Is this typical? What does your dealership charge?

Update: Bad info, the local dealer does not charge these upfront fees. This info original came from a competing dealership, but was incorrect

[lexus411]

is it a bank aquisiton fee? dealer advertising fee that is actually a fixed to the invoice? or is it there attempt to charge you more money to purchase the car? Does not exist so i woild not pay it if its the third

[SKperformance]

Ask them to explain the break down, that would maek the most sense right>?

Lots of dealers have lots of fees all you have to do is ask what it is.

[tealboy]

i already know what the fee is, but was wondering if others are seeing them too. It used to be dealer add on fees were $250 or so, but w/ more pressure to sell near invoice, they have raised this fee to make more money. I am not familiar w/ $800 dealer fees, plus the $250. It's essentially a add on fee for doing nothing, but it is also non-negotiable. the only way to negotiate it is to have them reduce the sale price to account for it. Depending on how good your deal is, they will either agree or not.

[lexus411]

then whats the sense of discounting the selling price? They should just say that they need x amount for the car? wouldnt buy from. or atleast give 1 800 25 Lexus a call and let them know what your local dealer is doing and preventing you from buying a car.

[SKperformance]

SO ,what is the break down of the fees they charge then?

[SW03ES]

Nope, thats not typical. The only fee thats typical is the "destination charge". All dealer fees are pure profit markups for the dealer, Lexus advises their dealers not to do this as its price gouging.

[SKperformance]

destination charge is freight

but what about the pdi and the normal admin fee for paper work and licensing ?

[lexus411]

there is a normal title fee depending on where you live of up to$50. This covers the processing and the Fed EXing. In NY we have a State Inspection $20. and Tire Tax $2.50 per new tire on the car {$12.50}. Not to turn this into another thread, but the dealer holdback covers there prep and detail.

[tealboy]

I will find out more today, but the $800 ($795) is a pure profit add on fee. Most of our dealers in Florida have it, but this is the highest i have ever seen. It serves no purpose other than added profit. They never waive it for fear of being sued for discrimination, so it is a pre-printed fee added to the sale contract. Rather than lose a deal at the signing table, this fee can be reduced by dropping the actual purchase price rather than waiving the fee. It's really ridiculous, but they all do it, but at $800, it got my attention. I have not fully figured out the admin fee but will inquire today.

[lexus411]

buy the car from JM and use the money for the flight.

[SW03ES]

SK- There's no such thing. Those things are costs of doing business and I've never done business with a dealership that charges for them. You pay for titling and things like that as part of your taxes and tags but other than that there are no "normal" fees. Tags are about $130 or so.

Every area is different though, and if you're in an area where dealerships do that then thats another story. Lexus, and most other carmakers, request dealers not do that though.

[bartkat]

Most dealers around here charge $400 to 500 "document fees". However, if you can negotiate that away from the final sale price, who cares? It's the bottom line that counts, no matter how the dealer wants to list it on the paperwork.

[tealboy]

Update: The information i rec'd was incorrect. It came from a competing dealer (the acura mdx dealer) who told me of the lexus fee. As it turns out, the lexus dealership does not have the fees mentioned above.

[Rx330driver]

Update:  The information i rec'd was incorrect.  It came from a competing dealer (the acura mdx dealer) who told me of the lexus fee.  As it turns out, the lexus dealership does not have the fees mentioned above.

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LOL :chairshot:

[bartkat]

Update:  The information i rec'd was incorrect.  It came from a competing dealer (the acura mdx dealer) who told me of the lexus fee.  As it turns out, the lexus dealership does not have the fees mentioned above.

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Good grief. Now it's posted on the internet for all to see.

[tealboy]

so what.

the dealership was never named and the situation was true but the information wrong, it just turned out to be another example of how this business works. I must admit, I fully expected a fee b/c every dealer in town charges one, but i have not seen them at $800, though close.