Lease End Fees?

[MarcusM117]

My lease is up in January and I was planning to buy it out no questions asked... until the dealer presented the laundry list of new charges. Alarm bells started ringing as soon as I saw $750 for a safety inspection, which is a 100+ point inspection to make sure that my car is safe to sell to me. This really irks me as this is the dealer that has serviced my vehicle for the past few oil changes.

Here's the break down - does this sound fair?

• Lease Pay Off - $16k
• Safety Inspection - $750
• Vehicle Selling Price (???) - $16,750
• Sales Tax - $1,358
• License Fee - $8
• Postage - $3
• Tire Fee - $5
• Documentation - $400
• Lieu Tax - $306
• Air Quality - $1.50
• Title - $4
• Balance Due - $18,859

I'll be calling TFS once they open in the morning so they can run a second set of numbers.

[xmadror]

Originally Posted by MarcusM117

Here's the break down - does this sound fair?

• Lease Pay Off - $16k
• Safety Inspection - $750 (forced dealer service really ??)
  
• Vehicle Selling Price (???) - $16,750
• Sales Tax - $1,358
• License Fee - $8
• Postage - $3 (probably done online)
  
• Tire Fee - $5 (only apply to new tire)
  
• Documentation - $400 (seems excessive for some paperwork)
  
• Lieu Tax - $306 (???!??)
  
• Air Quality - $1.50 (?!?)
  
• Title - $4
• Balance Due - $18,859

I sold car for mazda a while ago (~10 years) and while I haven't been implied in many lease buyback I can't say I remember any extra charges. Certainly no inspection fee, and "Lieu Tax" (what is that btw ??!). I'm not even sure if we had any documentation fee. But if we had it was probably around 100$.
Maybe a call to the head office could help because it looks like they are trying to milk it for as much as possible. They already made their money when you leased the car.

They probably want you to take a new lease and to buy back your frs to sell it on their used lot to make as much $$$ as possible.

[PhantomX]

Too many fees. Of course, it could also be due to what your state/city/municipality requires as well.

[MarcusM117]

That was my one thought as well that it could be AZ laws... but still excessive!

[extrashaky]

What does your lease contract say?

Some of that is really out of their hands. The lieu tax looks like it's your Arizona property tax on the vehicle, or at least the internet says that's what it is. Sales tax is going to be based on what you pay for the car. Most of the other stuff is too small to complain about.

Where they're trying to make money is on that safety inspection and the documentation fee. Both of those sound high and are just there to make money for the dealer as a broker between you and the finance company. I just checked on Edmunds and KBB, and a 2013 with normal miles on the used market is going for about $17.5K to $18K in Phoenix right now (plus taxes and fees). The folks at the dealership know this, and they're inflating their fees to get closer to retail. Their thinking is that you'll pay it when you realize you can't get a better deal by just telling them to fuck off and buying a different one yourself.

This, like any other car purchase, is a negotiation, and they have made you an offer to sell you the car. If you've already indicated an interest in buying the car, you've already lost the first round. But you can still bargain hard to get those fees reduced. Personally, I would counteroffer $150 for doc fees ("because I know you guys have to make money too") and absolutely nothing for a safety inspection. Then negotiate to a middle place from there. They may not budge, though, since they already know you want the car and can sell it for more money if you just return it.

[gotfrank]

Pay it off directly by calling TFS. You'll skip all those bogus fees. Once a lease was signed, the dealer has little to do with it unless you want to return the car at lease end. Otherwise it is just you and TFS.


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[Tcoat]

Most of the fees seem reasonable if you did not already pay them when you leased. Check your agreement to make sure you have not.
The inspection fee is pure theft (I think) call around to some independent shops and see what they charge for such an inspection. Bet it is not even close to that. Tell them you will have it done elsewhere if they will not meet the lowest price you can find. They can not force you to have them do it.
What the hell is a "lieu" tax anyway? Get that one explained and see if it seems real.
The other unreasonable fee is $400 for "documentation. Ask exactly what that is for and what YOU get from it. It is not up to you to pay for their costs of doing business. Personally, I would walk before I would pay them this unless it in some way was a benefit to me.

[Braces]

Which dealership is charging you these fees?

[MarcusM117]

This is Autonation Toyota.

Thanks for all the input!! I'm glad I walked out as soon as I saw the Safety Inspection. I'll chat with TFS in the morning and go from there.

[Hotrodheart]

OP, you'll be needing this..

[extrashaky]

Originally Posted by Tcoat

What the hell is a "lieu" tax anyway?

Google says:

http://www.pivotaltax.com/arizona-pe...-property-tax/

In Arizona, travel trailers, cars, and other vehicles are considered personal property, and thus owners pay a registration fee based on the value of the vehicle, rather than one based on the age or weight as in many other states. This fee is comprised of a registration fee and an “in lieu” tax which is collected by the Arizona Department of Transportation.

There are discussions out there about how high registration fees are in Arizona because of this tax. It appears to be legit.

[Tcoat]

Originally Posted by extrashaky

Google says:

http://www.pivotaltax.com/arizona-pe...-property-tax/

In Arizona, travel trailers, cars, and other vehicles are considered personal property, and thus owners pay a registration fee based on the value of the vehicle, rather than one based on the age or weight as in many other states. This fee is comprised of a registration fee and an “in lieu” tax which is collected by the Arizona Department of Transportation.

There are discussions out there about how high registration fees are in Arizona because of this tax. It appears to be legit.

Well there won't be any getting around that one then. Unless the OP can get the dealer to eat it of course.

[Astral Abyss]

Sounds like a ripoff to me. That inspection fee is complete BS. So is the documentation fee. They probably didn't get to rape you on the documentation fee when you signed the lease, so this is their big chance. If they cut that doc fee in half, it would still be good for them and less bad for you.

If my only choice was to pay $750 for them to pencil whip an inspection or walk away, I'd walk away.

[02.ACCORD.DUDE]

Tell them that that instead of inspecting the car they can inspect...



edit: Op you did the right thing by the way. If you ever feel uncomfortable or uncertain in a dealership get up and walk. If it turns out you were wrong suck up your pride and return to the dealership, some people would have you think that it makes you less of a man to do that... But as they say in my country... "That's retarded".