What is a dealer service fee?

[Bg8780]

I'm about to buy a new BRZ (last one was in an unfortunate pile up) and I was looking over the paperwork today. There is a dealer service fee that looks like it was "penciled" in with a type writer. I called and asked about the fee and the dealer told me it is a fee to cover dealer expenses. Prepping the car etc and they legally have to charge this fee. The fee was $489.00. Anyone else hear of this? This dealer has been jacking me around with price for awhile so I don't trust them. Just need to verification if this isn't a BS fee.

Thanks!

[OrbitalEllipses]

Every dealer tries to tack it on. Some states mandate it, others don't. It's 100% pure profit for them.

[Kimsey47]

I think it equates to this:

[Bg8780]

Originally Posted by OrbitalEllipses

Every dealer tries to tack it on. Some states mandate it, others don't. It's 100% pure profit for them.

I figured, that's what google has been telling me. The car is being purchased in FL. I'm so sick of these damn Subaru dealers. I had the same line of headaches when I bought the first one in Ohio. It never ends.

[OrbitalEllipses]

Originally Posted by Bg8780

I figured, that's what google has been telling me. The car is being purchased in FL. I'm so sick of these damn Subaru dealers. I had the same line of headaches when I bought the first one in Ohio. It never ends.

EVERY dealer. I've seen it at EVERY dealership. Including the Lexus dealership my father has faithfully bought from for over 10 years. It's not a Subaru thing, it's a capitalism thing.

[wbradley]

Its the markup above retail everyone whines about with many Subaru dealers on the BRZ. I would offer to buy WITHOUT that fee. If they refuse I would walk. Period.

It is also affectionately known as a sucker tax.

Hey, if you are forced to you can always get an FR-S and spend the extra (upgraded BRZ?) on a body kit, tires, exhaust etc.

[Porsche]

Originally Posted by Bg8780

I Just need to verification if this isn't a BS fee.

Thanks!

It IS a BS fee, but it's a free country and every dealer I've shopped at for years tacks it onto every new car sale.

Dealer “Doc Fees,” and “Service Fees,” etc. are all the same thing; they are simply Additional Dealer Markup (ADM) by another name.

If I have a trade-in vehicle, I would suddenly need an additional $489 (in your example) for trade value in order to agree to the deal, assuming everything else is satisfactory.

I do not argue with these people about “legality” or anything else, just the bottom line, out-the-door price. They’re free to add any fees they like onto the price of their new car, and I’m free to insist they give it right back to me on my trade-in. I just don’t describe it that way to them during negotiations, but that’s what’s actually happening.

You see, I KNOW what the new car costs, thanks to the MSRP on the Munroney sticker. But the dealer does NOT know what I'm willing to accept as a fair value for my trade-in vehicle.

[SquidyTweak]

Me: "What is this $1k Addendum fee?"

Dealer: "MOST dealers charge this fee for the shop to inspect the car. Dealers charge anywhere from $1k-$5k"

Me: "Keyword MOST, i.e not every dealer. I'm in no hurry and will check around to other dealers"

Dealer: "Let me check with the manager..........If we wave this fee will you sign today?"

Me: "Looking that way so far "

That's my experience with this mysterious fee dealers are playing with. You have to remember this is their business, they are there to make money. Just got to play the walk out game with them.

[raptor87]

just negotiate your out the door price with the fee included that's what I did

[Bg8780]

Thanks everybody for your input! It's exactly what I need to confirm my suspicions. I'm calling the dealer tomorrow, either wave the fee or I walk.

[Porsche]

Originally Posted by Bg8780

Thanks everybody for your input! It's exactly what I need to confirm my suspicions. I'm calling the dealer tomorrow, either wave the fee or I walk.

You don't have a trade?

[Bg8780]

Originally Posted by Porsche

You don't have a trade?

No, I'm replacing my BRZ that was totaled.

[Porsche]

Originally Posted by Bg8780

No, I'm replacing my BRZ that was totaled.

Okay.

I hope you weren't injured.

You could take the approach you suggested, but it's more confrontational than necessary and gives them a foothold for an argument about "legality," etc. since they charge everyone that fee.

If instead you just make them an offer that's, say, $600 less ... then there's nothing to argue about except what price you're willing to sign for today. You could let them work to bring you back up to $500 less and still be ahead by $11.

[Bg8780]

Originally Posted by Porsche

Okay.

I hope you weren't injured.

You could take the approach you suggested, but it's more confrontational than necessary and gives them a foothold for an argument about "legality," etc. since they charge everyone that fee.

If instead you just make them an offer that's, say, $600 less ... then there's nothing to argue about except what price you're willing to sign for today. You could let them work to bring you back up to $500 less and still be ahead by $11.

Already played that card, we started at $29,340. Got them down to $28,590.

Maybe I can offer them $28k flat. But they'll probably laugh.

I'm fine. 20+ car pile up when I was driving home for Christmas. 30 minutes from home after a 12hr drive. So close! Nobody was hurt at all thank God.