Zeppelin Posted July 25, 2007 Report Share Posted July 25, 2007 Check out Ohio Revised Code 1317.07 http://66.161.141.185/orc/1317.07, especially this sentence. 'A documentary service charge customarily and presently being paid on May 9, 1949, in a particular business and area may be charged if the charge does not exceed two hundred fifty dollars per sale.' The Ohio Auto Dealers Association http://www.oada.com lobbied and got this paragraph changed recently to increase the 'document fee' a dealer charges you when you buy a car up to a wopping $250. This is the fee for doing your title work, paperwork, etc. when you buy a car. CRAZY! Something that you can do yourself for about $20 or so, normally. Make sure you negotiate this down, if you can, when you make that next deal at the dealership. Shows what kind of lobbying power the Ohio Auto Dealers are starting to have. A hidden profit of $250 on every car can add up to a pretty penny for the dealership by the end of the year. Definitely something to contact your congressman and representative about and voice your displeasure. Quote Link to comment Share on other sites More sharing options...
Dr. Apex Posted July 25, 2007 Report Share Posted July 25, 2007 As if they don't make enough money on the sale of most of their cars as it is. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted July 25, 2007 Report Share Posted July 25, 2007 there's more to it than just filing title paperwork. most dealers don't charge that high of a doc fee. also, it's not hidden, it will be disclosed on your final deal. overall, dealers don't make much on new car sales like most believe. for them it's really a lost leader. they make it on parts, service and then used cars. rebates on the backside of the new cars is where about 1/2 of the profit is made on a new vehicle. however, taking into account most are self insured even just 1-2 incidents per year can make them take a pretty big hit. another point to consider is they typically only get 90 days of floor plan money to use for financing the inventory. after that they lose about 1% month on the carrying costs. my parents got out of the business back in the 1990....just about the perfect time to have done so. Pontiac/Olds/GMC/Caddy did well for them in the day though. Check out Ohio Revised Code 1317.07 http://66.161.141.185/orc/1317.07, especially this sentence. 'A documentary service charge customarily and presently being paid on May 9, 1949, in a particular business and area may be charged if the charge does not exceed two hundred fifty dollars per sale.' The Ohio Auto Dealers Association http://www.oada.com lobbied and got this paragraph changed recently to increase the 'document fee' a dealer charges you when you buy a car up to a wopping $250. This is the fee for doing your title work, paperwork, etc. when you buy a car. CRAZY! Something that you can do yourself for about $20 or so, normally. Make sure you negotiate this down, if you can, when you make that next deal at the dealership. Shows what kind of lobbying power the Ohio Auto Dealers are starting to have. A hidden profit of $250 on every car can add up to a pretty penny for the dealership by the end of the year. Definitely something to contact your congressman and representative about and voice your displeasure. Quote Link to comment Share on other sites More sharing options...
Zeppelin Posted July 25, 2007 Author Report Share Posted July 25, 2007 "rebates on the backside of the new cars is where about 1/2 of the profit is made on a new vehicle." I'm interested to hear a little more about this. Can you elaborate a bit. Thanks Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted July 25, 2007 Report Share Posted July 25, 2007 dealers get several different types of back end rebates. various programs will include cash/credit for purchasing so many vehicles for inventory, selling so many out in a given period, dollars to F&I from manufacturer backed financing....ie so many dollars for a each 2yr lease, 3yr lease, plus they get 1-3% backside for each car....usually given back in some form of a discount for end of year discounts, etc..... "rebates on the backside of the new cars is where about 1/2 of the profit is made on a new vehicle." I'm interested to hear a little more about this. Can you elaborate a bit. Thanks Quote Link to comment Share on other sites More sharing options...
Zeppelin Posted July 25, 2007 Author Report Share Posted July 25, 2007 Cool. Thanks. Quote Link to comment Share on other sites More sharing options...
verse Posted July 25, 2007 Report Share Posted July 25, 2007 Service is where most dealerships make most of the profit anyhow. Quote Link to comment Share on other sites More sharing options...
Rotarded1647545491 Posted July 26, 2007 Report Share Posted July 26, 2007 Service is where most dealerships make most of the profit anyhow. Yeah by forcing the Service Advisors to sell you shit you don't need, like engine flushes every 12,000 miles. Quote Link to comment Share on other sites More sharing options...
Mojoe Posted July 26, 2007 Report Share Posted July 26, 2007 We need a thread about how dealerships work to be stickied for reference. I just covered credit in another thread. And so many people have no idea all the $ that comes from a transaction. I know we have some guys on her that work at dealerships too. If someone else doesn't start it, I'll try to get to it. But, might be a while. Quote Link to comment Share on other sites More sharing options...
Kohones Posted July 26, 2007 Report Share Posted July 26, 2007 I'm one of those guys that work at an auto dealership - This $250 doc fee helps a dealership in defraying costs assoc with sales, ie we MUST now verify with the FEds "OFAC" list as we aren't allowed to sell to a suspected terrorist? we also have to comply & satisfy the requirements to Fair & Accurate credit transactions act & the fair credit reporting act to name a few. So before you start threads on certain business's best to think about that? Do we have threads on ALL business's? Lets certainly get a thread going on Doctors & Attorneys too??? Every business open for profit is just that, probably where you work they operate at a profit too, margins for business's today are getting thinner & thinner as well - Quote Link to comment Share on other sites More sharing options...
Dr. Apex Posted July 26, 2007 Report Share Posted July 26, 2007 Like Tim said most of their money is made on the back end of the sale, extended warranties, rust protection/fabric protectant, then obviously maintenance work. They can make a killing on the sale, I watched a dealer make $7000 off a durango, though this is rare. Basically, they never lose money on any deal no matter what, in some way or another they get a rebate back or something. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted July 26, 2007 Report Share Posted July 26, 2007 ever since the net went public back in the early 90's profit has gradually been translated into a dirty word it seems. too bad most folks don't understand or see the "costs" associated with running a dealership or how much it actually costs to sell a car. Every business open for profit is just that, probably where you work they operate at a profit too, margins for business's today are getting thinner & thinner as well - Quote Link to comment Share on other sites More sharing options...
Akula Posted July 26, 2007 Report Share Posted July 26, 2007 The great thing about this is if they charge me for filing documents and then screw it up I can go back after them for not providing the service I paid for. Two sides to every law. Quote Link to comment Share on other sites More sharing options...
Nitrousbird Posted July 26, 2007 Report Share Posted July 26, 2007 Buyers Volvo charges the full $250. My roomate bought his Jeep from there, and because he got such a good deal on it, they wouldn't budge on that number. He considered walking, but wanted the Jeep enough to just swallow the cost. Funny thing: he paid cash. So it was $250 for them to basically transfer a f'ing title. Quote Link to comment Share on other sites More sharing options...
Putty Posted July 26, 2007 Report Share Posted July 26, 2007 Motorcycle dealers do the SAME thing! $250 my arse! Quote Link to comment Share on other sites More sharing options...
OSUGT Posted July 26, 2007 Report Share Posted July 26, 2007 Basically, they never lose money on any deal no matter what, in some way or another they get a rebate back or something. Being in the business, I had to laugh at this one. Tell me how I made money on a 60 day old unit on floorplan with recon costs, and a sales commission when I can buy the same vehicle today for less. Ummm, also, how do I get a rebate back if I just gave it to you? Quote Link to comment Share on other sites More sharing options...
Mojoe Posted July 26, 2007 Report Share Posted July 26, 2007 One of you guys who works , or has worked at a dealership should start the thread on how everything works. Good deal vs. bad deal. there are a ton of rumors out there. Quote Link to comment Share on other sites More sharing options...
Smokey Posted July 26, 2007 Report Share Posted July 26, 2007 You're correct that there is more work and cost involved with some deals than others, dealers CANNOT alter their fees from one customer to another...that's a big NO NO....just look at why ASK has a suit from the attorney general pending right now. Same thing to Putty. Dealers can legally charge freight and prep on bikes, but the charges need to have a set system/scale that is not changed based on the customer (ie...we can scam that guy out of some additional fees) Buyers Volvo charges the full $250. My roomate bought his Jeep from there, and because he got such a good deal on it, they wouldn't budge on that number. He considered walking, but wanted the Jeep enough to just swallow the cost. Funny thing: he paid cash. So it was $250 for them to basically transfer a f'ing title. Quote Link to comment Share on other sites More sharing options...
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