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      01-23-2011, 11:21 AM   #1
Youngbp04
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Bmw processing fee

Quick question for the forum here... I have found/been told conflicting statements regarding the dealer processing fee when buying a new M3. I have been told that by law they have to charge $399. But in a bit of searching I have found that they do not have to charge it and are able to waive it.

I know it is peanuts compared to the price of the car, but it is the principal.

Any comments would help, and any documentation would be even better!

Thanks all in advance for your help!
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      01-23-2011, 12:02 PM   #2
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Do you mean a documentation fee? I've found that dealers in general are unwilling to negotiate on this fee... its not that they can't, its that they won't. In some states this fee is capped, so do some research. (http://www.edmunds.com/car-buying/wh...d-you-pay.html) In other states, the doc fee will vary depending on the dealership. I've seen $400 fees and $189 doc fees in NJ.

My advice? Talk to David Aviles at eurocarsonline. If you leave near MD, you can get the car at a great price with no BS fees (unless you consider any doc fee BS, an opinion shared by many).
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      01-23-2011, 12:09 PM   #3
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It sounds like your dealer is trying to put one over on you.

I've heard of "doc fees", but a multi-hundred dollar "processing fee" (sometimes referred to as "prepping fee") is a fee that you are expected to pay but won't have to if you ask the right question -- "What activity does the fee pay to have done?" If the answer is essentially "paperwork", something akin to $20-$50 would be reasonable although I would balk at even that amount. If the answer is "prepping the car before you take it home", just ask the dealer to forego prepping.

There is already a substantial destination charge. The presumption that the negotiated agreed too price includes delivery of a vehicle that is in an acceptable condition courtesy of the seller.

Just say "No thanks". If whomever will not agree to drop their effort to squeeze more $$$ out of you, go elsewhere to purchase your M or whatever model you are trying to buy.

EDIT: In recent years, I've been purchasing vehicles in Florida where there is "no limit" for dealer created doc fees. First time buying from a given dealer invariably meant hearing about the doc fee, but in subsequent dealings with the same dealer there is no mention of the additional "doc fee". I guess they learn fast.
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      01-23-2011, 12:23 PM   #4
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In my experience, in NY, I have always been charged two fees, a license fee and a dealer processing fee. Both are related to registering your car with the DMV.

The License Fee is basically the fee that it would cost to register the car at the DMV. Your dealer might charge $200+ for this. They usually won't know what the actual fee is until they go do it. That's why the high charge. Once they process your registration and/or plates, they will refund the difference. I received a refund from my local dealer for the difference in fees. They technically can not lie about the refund as your registration (at least in NY) will show how much the fee was paid to DMV.

The processing fee (at least on my bill of sale) says it's an Optional fee. However, my local dealer charged me $75 anyway. According to the bill of sale, this fee is for them to process your paper work at the DMV. Ok, fair enough, $75 sounds reasonable to save me the time and effort (taking time off work, etc.) to get on line at the DMV and do it myself.

It does not appear I was charged any other fees.

Hope that helps.
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      01-23-2011, 12:33 PM   #5
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Correction, I was also charged a third fee, a NY Waste Tire Fee of $12.50. Not sure what that is but I took my dealer's word for it (since it's such a minute amount) that it's required by the state.
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      01-23-2011, 12:36 PM   #6
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Thank you all for the insight.

They have a big sign next to the offices stating "processing fee $399"

I was a bit confused when I was told it was Illegal for a dealer not to charge it and if they didn't charge it they could be shut down, as my sibling purchased a car and did not pay this.

I will ask exactly what it is covering and negotiate accordingly! The car I tested was extremely dirty on the outside, but pristine on the interior so all I would need would be a hose to spray it down
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      01-23-2011, 12:38 PM   #7
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      01-23-2011, 01:47 PM   #8
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NY sets doc fee at $75, NJ dealers go nuts with the doc fee
$12.50 tire fee is legit, but we dont have a spare so it should be $10
dealer prep fee is all BS
They always overcharge for new plates and all that stuff then issue a credit if needed.
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      01-25-2011, 01:15 PM   #9
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Quote:
Originally Posted by Wah View Post
My advice? Talk to David Aviles at eurocarsonline. If you leave near MD, you can get the car at a great price with no BS fees (unless you consider any doc fee BS, an opinion shared by many).
Thanks Wah! I hope you are enjoying the M3

The doc fee is not required by law. Most purchase orders when you sign for your car state in bold print, NOT REQUIRED BY LAW.

Regards,
David
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      01-25-2011, 01:24 PM   #10
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The processing fee is not required. However the dealer IS required to charge everyone the same fee. So if they waived it for you, they (in theory anyway) would owe refunds to everyone that had paid it in the past. They way around it is to let them charge you for it but then reduce the agreed price of the car by the same amount. net, they get to charge you the fee and you don't pay anything more than the agreed price. The fee is just another profit source for the dealer. It allows them to cover part of their overhead for running the dealership.
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      01-25-2011, 02:33 PM   #11
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Call David. MD has a $100 max doc fee.

Invoice + MACO + Training + $100 Doc = M3
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      01-25-2011, 03:08 PM   #12
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+1 for David Aviles at EuroCarsOnline!
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