Are dealer fees bogus?

I’m curious to know how many people out there fee the dealer fee on your vehicle is BS. Most people when searching for a vehicle most often gripe about the dealer fee. Some people even right out just say they aren’t paying a dealer fee. This makes me wonder if the majority of the consuming public know what goes into a dealer fee?

First off, by Florida state law a dealer fee must be on the sale contract, so even if the dealer agrees to reduce or waive the dealer fee it must be present on the sale contract. Usually what they will do is reduce the sale price of the vehicle to compensate for the dealer fee. If you knew what went into the dealer fee, you would know that it probably isn’t the best deal they can make you on that vehicle if they will waive the dealer fee.

I can only speak on our dealer fee, because I don’t know what other dealers charge or how they calculated their fee. Here is a breakdown of our dealer fee and I will let you be the judge if the dealer fee is bogus.

Our dealer fee is three hundred and ninety nine dollars ($399) and here is how we come up with our dealer fee:

TitlingMost dealerships do not do their own titling work due to the complexity. The state requires that all finalized car deals complete the titling process within 30 days of the sale date. If the title isn’t completely processed by then a fine is levied on the dealership. Repeated offenses could result in revocation of the dealers license. To keep our dealership in compliance, we hired a title agent firm. This company picks up all our weekly deals and overlooks the documents and processes the deals through the state system. We are charged $100 per deal.

Detail-Every vehicle marketed for sale and eventually sold has an extensive detailing. Not your normal wash and quick wax, we perform a three stage paint corrective compound, polish, glaze and sometimes wax. This detail can be upwards of $150 

Fuel-Every vehicle sold at Max Torque Auto Group has the tank filled with fuel. It is unusual for a used car dealership to fill your vehicle tank, but we want to go above and beyond to delivery the highest level of customer service. A fueling could cost $40-$50 depending on the vehicle.

Due Diligence-Before any deal happens background information such as employment and credit must be checked. Our credit history research firm charges $49.99 per application (includes joint application)

Administrative Time-From processing the deal paperwork, to checking references and credit. Communicating with banks, insurance carriers, etc. These tasks take time and time is money. We pay administrative staff to handle these processes which in turn could cost the dealership anywhere from $35-$50

So you see, there is little to no profit at all in our dealer fee. It is simply a method to recover all of our out of pocket expenses that go into each deal. We hope this information was useful. If you are interested in purchasing a quality used vehicle visit us online