Comments on: One Part of Buying a Car is Getting More Expensive! http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: Jordan http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/comment-page-1/#comment-425762 Jordan Tue, 16 Jun 2009 20:06:15 +0000 http://allthingsfinancialblog.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/#comment-425762 You simply have to be able say 'no, thanks at that price' at least once to the dealer. This gives them a strong message that you are serious about your research. You should also bring a piece of paper to the dealership and make sure you do all the math of the finance calculations yourself. The point is not that they will do the math wrong. The point is you will see exactly how the deal is structured. Do not be afraid to take the time to do this or look like a fool for mapping out your car deal in the dealership. My dad swears by this process, <a href="http://tinyurl.com/nxutm2" target="_blank">http://tinyurl.com/nxutm2</a> You simply have to be able say 'no, thanks at that price' at least once to the dealer. This gives them a strong message that you are serious about your research.

You should also bring a piece of paper to the dealership and make sure you do all the math of the finance calculations yourself. The point is not that they will do the math wrong. The point is you will see exactly how the deal is structured. Do not be afraid to take the time to do this or look like a fool for mapping out your car deal in the dealership.

My dad swears by this process, http://tinyurl.com/nxutm2

]]> By: David http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/comment-page-1/#comment-49742 David Tue, 28 Nov 2006 07:26:32 +0000 http://allthingsfinancialblog.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/#comment-49742 Last month I helped my mother buy a car in Florida (I live in Washington state), and was shocked when I spotted a $599 document processing fee. When I complained I was shown how it is pre-printed on all of their sales agreements. I argued for awhile, getting nowhere, but gave in after my weary elderly mother just wanted to finish the deal. However, it seems clear that one can demand it be eliminated or reduced, and hold up the deal if they won't. Last month I helped my mother buy a car in Florida (I live in Washington state), and was shocked when I spotted a $599 document processing fee. When I complained I was shown how it is pre-printed on all of their sales agreements. I argued for awhile, getting nowhere, but gave in after my weary elderly mother just wanted to finish the deal. However, it seems clear that one can demand it be eliminated or reduced, and hold up the deal if they won’t.

]]> By: WearyTraveler http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/comment-page-1/#comment-29912 WearyTraveler Thu, 05 Oct 2006 19:54:28 +0000 http://allthingsfinancialblog.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/#comment-29912 That's certainly something to keep in mind the next time I'm looking at buying a car. Thank you for the information! That’s certainly something to keep in mind the next time I’m looking at buying a car. Thank you for the information!

]]> By: Billy in Texas http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/comment-page-1/#comment-29272 Billy in Texas Tue, 03 Oct 2006 18:02:32 +0000 http://allthingsfinancialblog.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/#comment-29272 I manage a Credit Union here in Texas and and I have also noticed an increase in the documentary charges/processing fees that are pre-printed on dealership's sales agreements. I have found that people are less likely to question something pre-printed on the sales agreement. A member was buying a vehicle in Atlanta, Georgia and agreed to a price of a car. He then told the dealership to delete the $599 processing fee because he would complete all the title work himself and send the title to the dealership after processing the paperwork. They said that they could not let him complete the paperwork. He told them that they needed to delete the fee if they wanted to sell the car. They sent over a revised sales agreement without the fee within a few minutes. I manage a Credit Union here in Texas and and I have also noticed an increase in the documentary charges/processing fees that are pre-printed on dealership’s sales agreements.

I have found that people are less likely to question something pre-printed on the sales agreement.

A member was buying a vehicle in Atlanta, Georgia and agreed to a price of a car. He then told the dealership to delete the $599 processing fee because he would complete all the title work himself and send the title to the dealership after processing the paperwork.

They said that they could not let him complete the paperwork. He told them that they needed to delete the fee if they wanted to sell the car. They sent over a revised sales agreement without the fee within a few minutes.

]]> By: Denise http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/comment-page-1/#comment-29263 Denise Tue, 03 Oct 2006 17:24:16 +0000 http://allthingsfinancialblog.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/#comment-29263 We just bought a new car last week. There was a small doc fee, but it was governed by a state max -- $56 or some such. Although your excerpts didn't specifically mention it, I think the distinction here also may be between paying cash or financing. There are loads of docs with financing, and dealerships are subject to more legislation when they are acting on behalf of the finance company (Truth in Lending Act, GLB), but when it comes to a regular retail transaction, it didn't seem to have as much impact. So in addition to Option 3 - Walk Away, maybe Option 4 should be pay cash -- or maybe I just got lucky with this particular dealership. We just bought a new car last week. There was a small doc fee, but it was governed by a state max — $56 or some such. Although your excerpts didn’t specifically mention it, I think the distinction here also may be between paying cash or financing. There are loads of docs with financing, and dealerships are subject to more legislation when they are acting on behalf of the finance company (Truth in Lending Act, GLB), but when it comes to a regular retail transaction, it didn’t seem to have as much impact. So in addition to Option 3 – Walk Away, maybe Option 4 should be pay cash — or maybe I just got lucky with this particular dealership.

]]> By: JLP http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/comment-page-1/#comment-29260 JLP Tue, 03 Oct 2006 16:38:40 +0000 http://allthingsfinancialblog.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/#comment-29260 samerwriter, Yeah, I thought that number seemed really low. I'm wondering if that takes in account any type of manufacturer's rebate or incentive. Also, keep in mind that the $60 is from the sale, NOT the maintenance programs, which account for a huge portion of dealer profits. samerwriter,

Yeah, I thought that number seemed really low. I’m wondering if that takes in account any type of manufacturer’s rebate or incentive.

Also, keep in mind that the $60 is from the sale, NOT the maintenance programs, which account for a huge portion of dealer profits.

]]> By: Charles http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/comment-page-1/#comment-29258 Charles Tue, 03 Oct 2006 16:33:39 +0000 http://allthingsfinancialblog.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/#comment-29258 Of course, it's always easier to negotiate on the price of a used vehicle, which has much higher profit margins than new cars. And... used cars are much cheaper. Buy used whenever possible (even if it is only 1-3 yrs old). Of course, it’s always easier to negotiate on the price of a used vehicle, which has much higher profit margins than new cars. And… used cars are much cheaper. Buy used whenever possible (even if it is only 1-3 yrs old).

]]> By: samerwriter http://allfinancialmatters.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/comment-page-1/#comment-29257 samerwriter Tue, 03 Oct 2006 16:31:52 +0000 http://allthingsfinancialblog.com/2006/10/03/one-part-of-buying-a-car-is-getting-more-expensive/#comment-29257 If that figure of $60 per vehicle net profit is true, that's a lot lower than I would have expected. Of course it's tough to say how much of that is self-inflicted. Many businesses intentionally try to avoid profits by distributing as much revenue as possible. If that figure of $60 per vehicle net profit is true, that’s a lot lower than I would have expected.

Of course it’s tough to say how much of that is self-inflicted. Many businesses intentionally try to avoid profits by distributing as much revenue as possible.

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