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Markups and more: The Death of Car Dealerships

Shankmeyster

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Dealerships are predicted to soon become service centers and display/test drive/delivery centers so people can try before they order online direct from the manufacturer, thereby finally getting the exact car you want. I'll be happy when the days of INSANE doc fees and markups are a thing of the past. 2 things that are major scams across the country.
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Tickle

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Dealerships are predicted to soon become service centers and display/test drive/delivery centers so people can try before they order online direct from the manufacturer, thereby finally getting the exact car you want. I'll be happy when the days of INSANE doc fees and markups are a thing of the past. 2 things that are major scams across the country.
I want to find the words to understand where you are coming from and also show that the consumer's nature is as guilty. I'm having a difficult time. I'll try anyway.


Speak with your money. Do business at a place that has earned your business. Find a fair deal. The internet makes things transparent as far as pricing.

Before the inventory issues when there was an abundance of everything... Prices were a race to the bottom. Most looked to reward the lowest price instead of a place the earned their business. Those places that earn your business with an excellent sales experience and fair price have the best employees who appreciate you doing business there just a bit more.

Doc fees are regulated by state law. I have thoughts on it too but I'm not the bad guy and if I explained my thoughts I'm sure I would become one.

Reward those who do what's right. That's how business should be.

Anyway... I know that will never happen.
 
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TypeSiR

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Dealerships are predicted to soon become service centers and display/test drive/delivery centers so people can try before they order online direct from the manufacturer, thereby finally getting the exact car you want. I'll be happy when the days of INSANE doc fees and markups are a thing of the past. 2 things that are major scams across the country.
Add fast food center. That day can’t come soon enough. I won’t be buying another car from a traditional dealer in my lifetime. Next car will either be a Tesla/Ford Lightning/Maverick/direct-order from manufacturer.
 

Shankmeyster

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I want to find the words to understand where you are coming from and also show that the consumer's nature is as guilty. I'm having a difficult time. I'll try anyway.


Speak with your money. Do business at a place that has earned your business. Find a fair deal. The internet makes things transparent as far as pricing.

Before the inventory issues when there was an abundance of everything... Prices were a race to the bottom. Most looked to reward the lowest price instead of a place the earned their business. Those places that earn your business with an excellent sales experience and fair price have the best employees who appreciate you doing business there just a bit more.

Doc fees are regulated by state law. I have thoughts on it too but I'm not the bad guy and if I explained my thoughts I'm sure I would become one.

Reward those who do what's right. That's how business should be.

Anyway... I know that will never happen.
Doc fees are only regulated in certain states. Most states have no limitation on them. If they were regulated then people wouldn't be paying $500-$750 in doc when, realistically, they should be $25 for someone to do some filing. https://www.realcartips.com/newcars/482-documentation-fees-by-state.shtml
 

Shiba Speed

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Doc fees for some states are much higher than that as that website's data is based off of 2011. But your overall point still stands in that only some states regulate and have a cap.
 


Tickle

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Doc fees are only regulated in certain states. Most states have no limitation on them. If they were regulated then people wouldn't be paying $500-$750 in doc when, realistically, they should be $25 for someone to do some filing. https://www.realcartips.com/newcars/482-documentation-fees-by-state.shtml
That website isn't accurate but I can't seem to find an accurate list either...

We use a service that we rely on and pay for to do registration work for us. So for example, it isn't often that I sell a vehicle to someone who is going to register it in say, Montanna. So instead of worrying about if I have everything correct, this service does the work for us. Some portion of that documentation fee goes to that.

Where I sell there is competition in a few different states. What I found is that the places with the higher documentation fees or whatever fees tend to discount the car more. We all pay the same for the vehicles, so why was one place more willing to take such a bath on a vehicle? Because they were making it up in fees. Six one way, half a dozen the other as the saying goes. I've absolutely seen people drive 200 miles for $200 instead of supporting their local shop. Nice to have choices.
 

ulieq

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Just got quoted for a Boost Blue Sport Touring 36.5k before taxes. hahaheahs;d;fh.
 

AshSerigala

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Its wild how things vary dealer to dealer. One local dealer wanted 25K for a 2018, 40K miles, civic hatchback EX-L trim. Meanwhile, The next dealership over was like F those fools I refuse to go a dim over MSRP. Told him I wanted the Hatchback Sport-Touring 11 gen. Told me what MSRP was, and after fees/taxes I owed 29K ( Rounded up 30K ) all said and done. Didn't talk me into any special offers or crappy "Give us more money" deals. Was very straight to the point, Got my car brand new not even on the lot for 2 days and yeah. Was wild hearing multiple friends of mine from different states saying they spent 35K+ for the same car while it was 30K here. They didn't have any others on the lot and were telling people ETA for another was like 3 months.

The dealership that wanted the 25K for a 2018 40K miles, claimed their prices are due to chip shortages. Claiming Honda is only gona give them 2 of each trim for all of 2022, 3-6 months apart. Due to short supply, demand is up, thus "We charge more" and when I told them the dealer down the road said F them and refuse to go over MSRP, They got pretty short-pissy at me and more/less refused to talk more XD

Guess the TLDR there is talk to every dealer before making the choice of buying one..cuz this dealer was NOT advertising they had anything for sale at the time. I had to call, to learn they had it...which was actually a car someone spoke for but backed-out due to fund issues..so I guess i stole someone's order more/less.
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